DPN’ing part 1: understanding lock-down and non-lock-down

DIRECTORS PENALTY NOTICE: to mix things up a little bit, I took the liberty of putting together an infographic on DPN’s.


As I previously wrote, from 1 April 2020, directors may become personally liable for unpaid GST, luxury car tax or wine equalisation tax.

This is in addition to unpaid superannuation and PAYG.

My infographic tells you whether you may be liable for a lockdown DPN or non-lockdown DPN, and possible solutions.

REMINDER: If the Company does either of the following:

(A) lodges the relevant BAS with the Australian Taxation Office and doesn’t pay (non-lockdown DPN); or

(B) lodges the BAS more than 3 months after it’s due, and doesn’t pay (lockdown DPN).

☔️ Non-lockdown DPN ☔️ means you are not liable until the ATO issues you the DPN in writing. Your options include: pay the debt or appoint an external administrator within 21 days of the notice date.

🔥 Lockdown DPN 🔥 means you are liable no matter what. Your only options are: declare personal bankruptcy or pay the debt.

Remember, now is incredibly important to lodge your BAS’s on time, not only to receive the Stimulus Package, but also for your protection.

Get in touch if you’d like a copy.

Australian Small Business and Family Enterprise Ombudsman

insolvency directorduties svvoidables

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