Major changes to director penalty notices now effective

Treasury Laws Amendment (2018 Measurements No. 4) Bill 2018 received Royal Ascent on 1 March 2018. This legislation impacts directors that have unreported employees' Superannuation Guarantee liabilities.

It will severely restrict the options available to directors if they receive a Director Penalty Notice (DPN) from the Australian Taxation Office in relation to unreported and outstanding employees' Superannuation Guarantee and PAYGW.

We recommend that you consider the implications of this in addition to the upcoming Single Touch Payroll regime which will be effective for all businesses employing staff from 1st July 2019, which will result in the ATO knowing almost immediately that Superannuation Guarantee and PAYGW obligations have not been reported.

If you would like to know any further details, please don't hesitate to contact us.