If you are a company director or considering becoming one, then it’s important you are aware that new legislation will allow the Australian Taxation Office (ATO) to pursue directors personally for certain debts of a company by issuing a Director Penalty Notice (DPN). Such notices have previously been restricted to unpaid and reported/unreported Superannuation Guarantee Charges and Pay as You Go liabilities.
What has changed?
On 5 February 2020, a proposal by the Federal Government to make DPN provisions apply to Goods and Services Tax (GST) was passed by both houses of Parliament. This means that DPNs will be able to be issued for unpaid and reported/unreported GST.
Who is affected?
If you are a director of a company, or you are considering taking on such a role, you need to be aware of these potential penalties. As a director, you could face bankruptcy and the eventual loss of your personal assets, including your home, if your company fails to meet its obligations in these areas.
When do these changes apply?
These changes will apply from 1 April 2020. They will not be applied retrospectively which means that directors can only be liable for unpaid GST incurred from 1 April 2020 onwards.
Get the right advice
Please contact us by phone: 07 3286 4077 or by email: firstname.lastname@example.org to discuss these changes and find out what you can do to comply with the legislation and protect your assets.