The Government recently released new law changes to the Director Penalty Regime, which can make directors personally liable for certain breaches of the company. The new changes extend the regime beyond unpaid PAYG Withholding Tax (PAYG) to also include unpaid superannuation guarantee charge payments.

While this in itself may sound bad enough, that is not the full story …

In addition to applying to directors, the new laws will also apply to "associates" of directors, which is widely defined to include relatives, partners, spouses and children of directors.

Whilst available defences exist, they are limited, and it is widely accepted they are difficult to prove.

The new provisions apply to both directors holding office at the time of the non-compliance who have subsequently ceased to be directors, and to directors appointed after the time of non-compliance.

Practically, directors must take steps to ensure that they are aware of the tax position of their company and make sure tax compliance obligations are up to date and lodged on time.

For full details, please see our full Directors Alert here.

If you have any questions or concerns - please contact your Lowe Lippmann representative.

 Lowe Lippmann Chartered Accountants & Business Advisors

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