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ARTICLE · 09 JULY 2023

Director penalty notices: A practical guide

Worrells
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What a director penalty is and the types of director penalty notices (DPNs).

AustraliaInsolvency/Bankruptcy/Re-Structuring
Ashley Sofra
Ashley Sofra
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We answer three common and critical questions.

At Worrells we receive many enquiries regarding director penalty notices (DPN), including three common questions:

  1. How to work out if a DPN is for a lockdown or non-lockdown director penalty?
  2. How to know if a DPN has already been received?
  3. What happens when the 21 days is up for a DPN?

Before we dive into each question, we'll run through what a director penalty is and the types of DPNs.

What is a director penalty?

A company director is responsible for ensuring that the company's tax and superannuation obligations are both reported and also paid on time. A director becomes personally liable for a penalty at the end of the day the company is due to pay its obligation for any unpaid:

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