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You may have seen our recent article about how a DPN works, but because running a company in Australia comes with responsibilities that extend well beyond day-to-day operations, we thought it worthwhile diving in again. A Director Penalty Notice is one of the more serious risks directors face, it results in personal liability for certain unpaid company taxes. The Australian Taxation Office (ATO) uses Director Penalty Notices (DPNs) to enforce this, and in recent months, their use has been increasing.
If you’re a director, or considering becoming one, understanding how DPNs work and how to protect yourself is essential.
A Director Penalty Notice is a formal notice issued by the ATO that can make you personally liable for a company’s unpaid:
• Pay As You Go (PAYG) withholding
• Goods and Services Tax (GST)
• Superannuation Guarantee Charge (SGC)
In other words, if these obligations aren’t paid on time, the ATO can shift the responsibility from the business to its directors.
Once a DPN is issued, directors have 21 days to take action. That action may involve:
• Paying the debt in full
• Placing the company into administration or liquidation (for certain types of notices)
Failing to respond within the deadline means the penalty automatically becomes locked in against the director personally, with no further opportunity to resolve it through company processes.
Even if your company can’t pay its full tax bill, you should still lodge BAS and superannuation guarantee statements on time. This is because:
• Lodged on time: You may still be eligible for a “non-lockdown” DPN, which gives you restructuring or administration options.
• Lodged late: You lose these options. A “lockdown” DPN means you are automatically liable, and resigning as a director won’t remove that responsibility.
• “If I resign, I’m safe.” Not true. Resigning after the debt has arisen doesn’t protect you. You remain liable for periods when you were a director.
• “The company can sort it out later.” Once the 21 days have passed, the liability is personal and permanent.
• “This only affects large companies.” In reality, small and medium businesses are often targeted because cash flow pressures can lead to unpaid GST or super.
Being a company director can open doors for growth and opportunity, but it also carries personal risks if tax obligations aren’t met. DPNs are one of the ATO’s strongest enforcement tools, and ignoring them is not an option.
The best defence is proactive compliance, clear oversight of company finances, and timely action if issues arise.
Need clarity on your obligations as a director? Give the Attune Advisory team a call on 1300 866 113 or send us an email to start the conversation — you’ll be glad you did.
From the start of this financial year came a new round of payroll and compliance changes for Australian employers. From wage increases to expanded leave entitlements, the rules have shifted, and every business owner needs to know what’s changed to avoid costly missteps.
Payroll isn’t just an administrative task, it directly affects your cash flow, staff satisfaction, and compliance obligations. Missing a new requirement could mean backpay claims, fines, or serious legal disputes. Staying on top of the updates ensures you’re not only compliant but also seen as a fair and reliable employer.
With Payroll Auditing becoming more prevalent there’s less avenues for excuses with incorrect payroll, and certainly, more room to nail your obligations without breaking a sweat. So, if you’re unsure, we can point you in the right direction so you can stay proactive and ensure you’re doing everything you can (and should) for your team and business’ wellbeing.
The national minimum wage has risen by 3.5%, bringing the base rate to $948 per week or $24.95 per hour. Every employee covered by the minimum or award rates is impacted. Double-check your rosters and pay runs to ensure you’re meeting the new standard.
The superannuation guarantee has officially lifted from 11.5% to 12%. While half a percent may not sound like much, across your whole workforce it adds up. Be sure payroll systems are updated and factor the increase into future budgets.
Parents now have access to 24 weeks (120 days) of paid parental leave for children born or adopted after 1 July 2025. This means employers need to plan for longer absences, update leave policies, and ensure payroll software reflects the new entitlement.
Two important shifts:
• ATO interest on overdue tax debts is no longer deductible. Late payments will now hit your bottom line harder.
• Instant asset write-off capped at $1,000 per item. Larger purchases will need to be depreciated over time instead of deducted upfront.
• Right to disconnect: From August 26, small business employees can refuse after-hours calls or emails unless it’s an emergency.
• Casual conversion: Long-term casual staff now have an easier path to request permanent roles. Businesses must have processes in place to handle these requests fairly.
1. Review wages and budgets: Ensure you’re paying the correct minimum rates and adjust cash flow forecasts for the super increase.
2. Update policies and payroll systems: Reflect the extended parental leave entitlements and workplace rights in your HR documents.
3. Stay tax-smart: Keep ATO deadlines top of mind and plan asset purchases with depreciation rules in mind.
4. Communicate with your tea: Be transparent with staff about changes to pay, leave, and workplace policies.
Managing payroll and compliance isn’t just about avoiding penalties, it’s about building trust with your employees and keeping your business running smoothly. By preparing now, you’ll avoid surprises, keep staff engaged, and maintain stronger financial control.
Need a hand navigating the changes?
Give the team a call on 1300 866 113 or send us an email to start the conversation – you’ll be glad you did.
When most business owners hear the words “tax planning,” their minds immediately jump to June 30. But in reality, effective tax planning isn’t something to dust off once a year. For Australian SMEs, it’s a year-round strategy that can deliver lasting benefits to cash flow, compliance, and growth.
Here’s why smart tax planning should be embedded into your business operations, not just your EOFY checklist.
Cash flow is the lifeblood of any small-to-medium enterprise. By planning ahead, businesses can structure expenses and income in ways that smooth out cash flow peaks and troughs. For example:
• Strategic timing of invoices and payments can help you better manage working capital.
• Regularly reviewing PAYG instalments ensures you’re not overpaying (or underpaying) tax during the year.
• Claiming eligible deductions early can ease cash flow pressure.
Proactive planning means fewer surprises and more certainty when it comes to meeting your obligations.
Australia’s tax system offers a range of deductions and incentives that SMEs can leverage, but many go unclaimed simply because business owners don’t plan ahead. Some examples include:
• Instant asset write-offs or temporary full expensing on eligible equipment purchases.
• Home office and technology expenses, especially relevant for hybrid or remote work setups.
• Industry-specific deductions, such as tools for trades or professional development for consultants.
Staying across these opportunities all year round helps ensure nothing is left on the table.
ATO scrutiny on SMEs has increased in recent years, with a strong focus on accurate record-keeping, GST compliance, and correct claims. Tax planning isn’t just about reducing liability — it’s also about staying on the right side of compliance.
Working with a proactive advisor helps you:
• Keep records organised.
• Meet all lodgement deadlines.
• Avoid penalties or interest from misreporting.
This peace of mind allows you to focus on running your business, not worrying about unexpected letters from the ATO.
Good tax planning is really good business planning. Structuring your tax position correctly can support your long-term goals, whether that’s reinvesting profits into growth, securing finance, or planning an eventual business exit.
For instance, an advisor can help you:
• Structure your business (company, trust, partnership) to balance tax efficiency with liability protection.
• Plan for capital gains tax when selling assets.
• Access R&D tax incentives to fuel innovation.
This strategic lens turns tax from a cost into an enabler of sustainable growth.
When you have clarity over your tax obligations and opportunities, it’s easier to make confident decisions. Whether it’s hiring new staff, investing in new equipment, or expanding into new markets, ongoing tax planning gives you the numbers you need to move forward with certainty.
Our approach (that should also be yours), is that tax planning isn’t just a once-a-year exercise — it’s a year-round strategy that underpins cash flow, compliance, and growth. By working with the Attune team throughout the year as part of your tax processess, allows you to unlock deductions, reduce risk, and make better business decisions with confidence.
We’re here to help you take control of your tax position and plan for success all year round, so let’s talk about what we can do for you … Call us on 1300 866 113 or get in touch here to speak with an expert.
Australia isn’t just one of the best places in the world to live, it’s also an exceptional place to launch and grow a business. Whether you’re a sole trader, a startup founder, or running a scaling enterprise, the Australian business landscape offers unique advantages that help entrepreneurs thrive.
We work with plenty of growing entrepreneurial businesses and because of that, have seen first hand how being in Australia can be of benefit. So, we thought we’d put together seven reasons why building a business in Australia is a smart move.
Australian entrepreneurs enjoy generous government support, from small business grants to industry-specific programs. Initiatives such as the Entrepreneurs’ Program and various state-based rebates provide valuable financial and advisory assistance to help businesses start, grow, and innovate.
Australia’s strong governance and consistently resilient economy create a fertile environment for long-term ventures. Even in uncertain global climates, the local market provides entrepreneurs with confidence to invest and grow.
With one of the highest internet penetration rates globally and a booming eCommerce scene, Australia is primed for digital-first businesses. This digital connectivity makes it easier than ever for entrepreneurs to reach, engage, and service customers.
Located close to Asia yet still aligned with Western markets, Australia enjoys a unique time-zone advantage. Businesses here can connect with clients and partners across multiple continents in the same working day, opening doors to global opportunities.
Australians are early adopters with a taste for new ideas. From technology to wellness to financial services, local consumers are quick to embrace innovation — making Australia an excellent testing ground for entrepreneurs bringing bold new solutions to market.
Compared to many countries, Australia offers streamlined business setup processes, straightforward GST systems, and company tax incentives. These structures particularly benefit small-to-medium enterprises (SMEs) looking for efficient ways to start and scale.
No entrepreneur builds success alone. Partnering with the right accountant or business advisor helps ensure compliance, unlocks tax efficiencies, and supports smarter financial decision-making, so you can focus on running and growing your business.
Final Word
Being an entrepreneur is never without its challenges, but in Australia, the support and opportunities are hard to beat. With the right idea, mindset, and professional advice, your business journey can thrive here. And support with your tax and strategic approach? You can get that with Attune Advisory.
If you’re thinking of starting or scaling your business, Attune Advisory is here to help. Let’s talk about what we can do for you … Call us on 1300 866 113 or get in touch here to speak with an expert.
