Director Penalty Notices and Personal Liability for Company Debts

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Received a Director Penalty Notice? Time is Critical

If you are a company director and receive a Director Penalty Notice (DPN) from the Australian Taxation Office (ATO), you could become personally liable for unpaid company tax debts, including PAYG withholding, superannuation and GST. You usually have only 21 days to respond before the liability becomes locked in.

There are two types of DPNs: standard and lockdown. The type you receive affects your options. In some cases, you can avoid personal liability by appointing a voluntary administrator or liquidator within the time limit. In other cases, you may be automatically liable and limited to dispute or hardship options.

Law Tram connects you with lawyers who can help you act quickly, understand your legal exposure and protect your personal finances.

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Law Tram's Legal Partners can assist with DPN matters, including:

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How It Works

Confidential and Secure Questionnaire

Start by completing our secure online questionnaire. This step allows you to provide essential details about your company’s financial situation and the notice received.

Confidential Legal Summary

Law Tram’s advanced technology generates a confidential legal summary of your situation while keeping your personal and business details private.

Review by Licensed Australian Lawyers

Your confidential legal summary is shared with our network of vetted lawyers who review your case to determine how they can assist.

Connect with a Lawyer

If a lawyer believes they can help, they will initiate a chat with you through the Law Tram platform. Your contact details remain private unless you choose to share them.

No Obligation

You are under no pressure to retain any lawyer unless you are confident in their ability to assist. Law Tram empowers you to make informed decisions.

What Others Are Saying

Law Tram User

I got a DPN and had no idea I could be personally liable for tax debts. The lawyer helped me act before the deadline and protect myself.

Law Tram User

The lawyer explained the difference between a lockdown and standard notice and guided me through liquidation before the liability stuck.

Law Tram User

Our business was small and struggling. The lawyer helped me avoid bankruptcy while dealing with the company debts properly.

Legal Information Only – Not a Substitute for Advice

This page provides general legal information only. It is not legal advice and should not be relied on as such. Director Penalty Notices have short timeframes and serious consequences. You should seek advice from an Australian Legal Practitioner immediately after receiving one.
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Take the First Step Toward Resolution

Law Tram’s Debt and Bankruptcy Consultation offers a secure, efficient and supportive way to connect with expert legal help. Whether you’ve just received a DPN or want to understand your personal liability as a director, our platform helps you access tailored advice from qualified lawyers.

Start your free, confidential consultation today. Please note that Law Tram does not assist in finding legal aid lawyers. If you are seeking legal aid, visit our dedicated legal aid page for more information.

Take the first step toward resolving your debt matter with clarity and peace of mind.

Frequently Asked Questions

It is a formal notice from the ATO making directors personally liable for certain unpaid company tax debts if they are not dealt with in time.
A standard DPN gives you options if acted on within 21 days. A lockdown DPN applies where obligations have not been met for a long time, and liability is immediate.
Possibly. If it is a standard notice, you may avoid personal liability by putting the company into administration or liquidation quickly.
You may still be liable if the debt was incurred while you were a director. Legal advice is critical to avoid personal consequences.
Yes, if the debt becomes personally enforceable. They can seek court orders and enforcement against your personal property, including your home.
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