News

What is a director penalty

As a company director you become personally liable for your company’s unpaid amounts of:

• pay as you go withholding (PAYGW)
• goods and services tax (GST)
• super guarantee charge (SGC).

These amounts that you are personally liable for are called director penalties. The ATO can recover the penalty amounts from you once they issue you a director penalty notice.

Director penalty notices

A Director penalty notice (DPN) is a notice the tax office must give you that allows them to recover the company’s unpaid amounts.  The notice outlines the unpaid amounts and remission options available to you.

The tax office can recover the amounts of the director penalty by:

• issuing garnishee notices
• offsetting any of your tax credits against the director penalties
• initiating legal recovery proceedings against you to recover the director penalty.

If you are a current director, when the tax office gives you the DPN, they will use the address you registered with Australian Securities & Investment Commission (ASIC). Otherwise, they will use the address last known to them, therefore it is important you keep this address updated.

The date they post (or leave the DPN at the address registered with ASIC) is the date the notice is given to you.

If you receive a Director Penalty Notice, please contact your tax agent immediately.

The Australian Government has passed the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022. This legislation introduces new workplace laws and changes a range of existing rules.

Started 7^th December 2022

• Prohibiting pay secrecy
• Gender equality
• Flexible work
• Anti-discrimination – breastfeeding, gender identity, intersex status

Started 7^th January 2023

• Restrictions to job Adverts

Started 6^th March 2023

• Prohibiting workplace sexual harassment – The Fair Work Act has been amended to prohibit (or ban) sexual harassmentin connection with work, including in the workplace. These changes expand the previous protections around sexual harassment in the workplace.

These have recently been updated.  It’s the document you need to give to every new employee.  You can find a copy here.  Don’t forget there is separate statement for casual employees.

Single Touch Payroll – phase 2

Xero announces extension to STP2 deadline

“Xero has been granted a deferral on the start date of the STP Phase 2 for our payroll software, and applies to all new and existing customers.

This means that all customers reporting STP using Xero Payroll have until 31 March 2023 to report their first STP Phase 2 pay run, instead of the 1 January 2022 ATO deadline.

This gives our Xero Payroll customers more time to ensure that payroll records are STP Phase 2 compliant.”

MYOB puts STP2 Transitions on a temporary hold

“In July we paused transitions to STP Phase 2 to improve the in-product experience. But the wait is over – you can now make the move to STP Phase 2.

You’ll be prompted in your MYOB business to make the move to STP Phase 2. It’s a simple process and we’ll guide you every step of the way.

During the move, your business and employee details will be checked to make sure they meet the new STP requirements. This includes checking inactive and terminated employees if you’ve paid them in the current payroll year. If anything needs fixing, we’ll let you know.

MYOB has obtained a deferral from the ATO which means you have until 1 January 2023 to move to STP Phase 2. This means you can relax and make the move at a time that suits you in 2022.”