When it comes to Director Penalty Notices (DPNs), confusion and fear are common. That’s why a recent conversation between Olga Koskie from Tax Assure and our own Liam Bailey, Managing Partner at O’Brien Palmer, was so valuable.
Combining Olga’s vast tax debt negotiation and Liam’s insolvency expertise, they were able to share their knowledge to shed light on this complex area. DPNs are one of the most pressing issues directors face today.
Almost every inquiry he sees involves a DPN. Why? Because these notices can make directors personally liable for PAYG, GST, and super debts.
Olga highlighted how directors often panic when the ATO calls, sometimes even in tears. Her message: it’s not the end of the world. Solutions exist, but they differ for every business. Liam echoed this:
“Once a director penalty notice lands, you’ve got 21 days to act – pay, negotiate, or appoint a formal insolvency practitioner. But if you’ve fallen behind on lodgements for more than 3 months, you could already be personally liable under a ‘lockdown DPN’ even before the notice arrives.”
Key takeaways from the discussion:
- DPNs are personal: They can’t be ignored. Liability may attach to the director, not just the company.
- Solutions vary: From payment plans to small business restructures, the right option depends on the company’s viability and the director’s circumstances.
- Lockdown DPNs are harsher: Late lodgements trigger automatic liability. Ignoring ATO lodgement obligations is one of the biggest risks.
- It’s not too late: Even with days to spare, formal appointments and payment arrangements can stop liabilities crystallising.
Olga reminded directors: “don’t avoid the issue. Pick up the phone, eat the frog, and deal with it head-on.”
Liam agreed:
“Expertise matters. These notices are designed to sharpen your focus on solvency issues. If you don’t understand them, speak to someone who does… early.”
The bottom line is that DPNs are serious, but they’re not the end. With the right guidance, directors can find solutions that protect both their business and their personal position.
Don’t Wait – Speak with us today
At O’Brien Palmer, we’ve seen first-hand how a proactive approach can help directors avoid personal liability and find a workable solution, whether that’s through settlement negotiations, restructuring, or insolvency strategies.
The ATO is not unreasonable, and in many cases, there are options available to resolve the debt. However, waiting too long can severely limit those options and leave you personally exposed.
If you’ve received a DPN, don’t wait. Contact our team today for a confidential discussion on how we can help.
Liam Bailey, Managing Partner
O’Brien Palmer
📞 Need advice? Call us at (61) 2 9232 3322 for a confidential chat.
📩 Email us at: obp1@obp.com.au
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Want more information?
Download our FACT SHEET and go to our Small Business Resources page for frequently asked questions about Director Penalty Notices.
