A Director Penalty Notice is one of the most serious actions the ATO can take against a company director. Once issued, it transfers the company's tax debt directly to you personally. Our specialists help directors understand their options and act before it's too late.
A DPN makes you personally liable for the company's unpaid PAYG withholding, GST, or superannuation guarantee charge.
If the debt is not resolved, the ATO can pursue your personal assets — including savings, property, and investments.
Depending on the type of DPN, you may have as little as 21 days to act — after which your options become severely limited.
If the company's tax obligations were not reported on time, a lockdown DPN is issued — and the debt cannot be remitted regardless of what action you take.
If unresolved, the ATO can commence court proceedings against you personally to recover the full debt amount.
Unresolved DPN debts and associated insolvency proceedings can affect your ability to act as a company director in the future.
A Director Penalty Notice (DPN) is a formal notice issued by the ATO under the Taxation Administration Act 1953 that makes company directors personally liable for certain unpaid company tax obligations — specifically PAYG withholding, the Superannuation Guarantee Charge (SGC), and GST. There are two types: a standard DPN, which gives directors 21 days to take action before personal liability is enforced, and a lockdown DPN, which is issued when obligations were not reported on time and cannot be remitted regardless of action taken. As a director, the best way to protect yourself is to act the moment a DPN arrives — and ideally, to take steps to address outstanding obligations before a DPN is ever issued.
Urgently reviewing your DPN to determine whether it is a standard or lockdown notice and what options are available.
Advising on the fastest available path to remit or reduce the penalty before the 21-day deadline expires.
Assessing eligibility for the Small Business Restructuring (SBR) program as a way to address the underlying company debt.
Advising on Voluntary Administration as an option to remit the DPN penalty within the required timeframe.
Negotiating with the ATO on payment arrangements and debt reduction where personal liability has already been established.
Advising former or newly appointed directors on their specific obligations, exposures, and available defences under the law.
Any director who has received a DPN from the ATO and needs to understand their options before the deadline passes.
Those whose company has unpaid PAYG, GST, or SGC obligations and who want to act before a DPN is issued.
All directors of a company are personally liable under a DPN — each needs independent advice on their own position.
Those who recently became a director of a company that already had outstanding tax obligations need to understand their exposure.
Resigning as a director does not automatically remove DPN liability — former directors may still be personally exposed.
Directors of small businesses who may be eligible for the SBR program as a way to resolve the underlying company debt.
Specialists available across all states and territories with urgent DPN response capability.
We act immediately — the 21-day window on a standard DPN is non-negotiable and every day matters.
We assess eligibility for SBR and Voluntary Administration — both of which can remit a standard DPN penalty.
We focus on protecting your personal financial position while working to resolve the company's underlying obligations.
No cost to review your DPN — contact us immediately and we will advise on your options without delay.
Get in touch the moment you receive a DPN — the clock starts from the date of issue, not the date you open it.
We urgently review the notice, identify the type of DPN, and advise on exactly what actions are available to you.
We implement the right strategy — whether SBR, Voluntary Administration, ATO negotiation, or another pathway.
We work to resolve the penalty, protect your personal assets, and put the company on a viable path forward.
Finding the right legal help felt overwhelming at first, but the experience was straightforward and reassuring. Everything was handled professionally, and we felt supported throughout.
We needed legal guidance quickly and were impressed by how smooth the process was. The support was professional, clear, and helped us move forward with confidence.
Restructuring and ATO debt support is offered through MCR Partners Pty Ltd, holder of Australian Credit Licence 531570.
We work alongside a registered Small Business Restructuring Practitioner and support you through the process step by step, so you always know where things stand and what comes next.
This is a legal, transparent, and government-backed process designed to help eligible companies and trusts manage tax debt while staying in control of their business and day-to-day operations.
Any examples of savings or outcomes shown on this website are based on real client matters. Because every business is different, results will vary depending on your circumstances, eligibility, and the options available to you.
The information on this website is general in nature and is not personal financial advice. Specific guidance can only be provided after understanding your situation in detail.
We treat your privacy with care. Any details you share with us are kept private, secure, and confidential in line with the Privacy Act 1988 (Cth).
We do not sell your information or pass it around to unrelated third parties. Your information is only used to assess and assist with your enquiry, unless disclosure is required by law or authorised by you.