Abbie and the Accounting team have seen a noticeable increase in Director Penalty Notices (DPNs) over the past 12 months.
More often than not, DPNs tend to follow a period of tight cash flow, delayed BAS lodgements, or superannuation falling behind during a busy season. For many directors, the assumption is that company debt stays with the company, but Director Penalty Notices change that.
What a Director Penalty Notice Actually Means
A Director Penalty Notice allows the ATO to recover certain unpaid company debts from directors personally.
This can include:
GST
PAYG Withholding
Superannuation Guarantee
This means that if these obligations aren’t lodged and paid, the liability can move from the company to you.
In the 2024/25 financial year, more than 84,000 DPNs were issued – a large increase on the previous year. The Tax Ombudsman has now added the ATO’s use of DPNs to its 2025/26 review program, examining how they are administered and communicated.
Where We See Business Owners Get Caught
In regional businesses especially, we often see:
Lean admin teams which means bookkeeping can fall behind during busy periods
Seasonal cash flow which can increase the risk of delayed super payments
Family members listed as directors who aren’t actively involved in the day-to-day
Directors stepping away without realising historical obligations remain
If You’re Behind, Don’t Ignore It
We know how quickly circumstances can change – a delayed project here, a slower season there, late payments or rising costs across wages and materials. It doesn’t take much for obligations to start slipping.
If you’re concerned about ATO debt, unpaid super, or an overdue BAS, speak with our team. The earlier we’re involved, the more options you’ll have – and the sooner we can help you.
Book your appointment with our team and take a confident step toward growing with clarity: book here.