Company directors need to keep in mind that the Corporations Act holds directors personally liable for many of the legal and financial obligations expected from a company (see the relevant section of the law here).

But there are also some tax obligations for PAYG withholding and superannuation guarantee charge payments, which are outlined under the ATO’s “director penalty regime” (read more here). Since its introduction in 1993 there have been several changes made to the regime, but the latest change to the rules came into law only recently (from 1 March 2019).

The update mainly focuses on the superannuation payment obligations of employers. The relevant section of Treasury Laws Amendment (2108 Measures No. 4) Bill 2018 is under the heading “Enhancements to the Director Penalty Notice Regime” (scroll down).

The measure could be said to flag a more rigid approach by the ATO on the collection of employer obligations. There is even some talk that GST liabilities will be covered under the director penalty regime in the future. Readmore