The Director’s Penalty Notice regime will be extended to include GST liabilities, with legislation now passed parliament. Also, the legislation extends the regime for LCT and WET, taxes which are paid as part of activity statement lodgements.

From the quarter following royal assent (at this stage likely 1 April 2020), the Commissioner of Taxation would be allowed to declare a GST liability estimate. From there, the director has 21 days to ensure an outstanding amount is dealt with to avoid personal liability of outstanding GST.

The extension will mean that a director may become personally liable for PAYG withholding, superannuation guarantee or GST owed by the company they represent.

Source: Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019; Exposure draft