From 1 April 2020, the Directors Penalty Regime has been extended to include unpaid and reported/unreported GST Liabilities (as well as Luxury Car Tax and Wine Equalisation Tax).

This is in addition to the previous extension on 1 April 2019 to add unpaid and reported/unreported Superannuation Liabilities to the Directors Penalty Regime.

The Directors Penalty Regime now applies to the following amounts:-

• PAYG Withholding;
• Superannuation;
• Net GST (as well as Luxury Car Tax and Wine Equalisation Tax).

Note that as of 1 April 2020 the Estimates Regime has been extended to include GST Liabilities (as well as Luxury Car Tax and Wine Equalisation Tax).

The Estimates Regime allows the Australian Taxation Office (ATO) to assess Taxpayers on an estimate of the unpaid and overdue PAYG Withholding, Superannuation and GST Liabilities.

This can be combined with the Directors Penalty Regime, to assess Directors on an estimate of the outstanding PAYG Withholding, Superannuation and GST Liabilities in the event that the actual liability has not/cannot be determined.

There are two types of Director Penalty Notices (DPN) that can be issued:-

• Non-Lockdown DPN; and
• Lockdown DPN.

Non-Lockdown DPN’s are issued where the PAYG, Superannuation and GST Liabilities have been reported to the ATO in the correct timeframes, and can be remitted if the one of the following options has been implemented (within 21 days of the date of the notice):-

• payment of the outstanding amount;
• appointing an administrator; or
• placing the company into liquidation

Lockdown DPN’s are issued where the PAYG, Superannuation and GST liabilities have not been reported to the ATO in the correct timeframes. These liabilities cannot be remitted and have to be paid by the director(s) within 21 days of the date of the notice.