“ATO Debt Keeping You Up at Night? You Might Have a DPN”

If your business is behind on tax obligations—like PAYG withholding, superannuation, or GST—you may be concerned about the ATO escalating recovery action. For company directors, one of the most serious risks is receiving a Director Penalty Notice (DPN) from the ATO.

But how do you know if a DPN has been issued? And what can you do if you’re worried?

In this guide, we’ll break down how to check for a DPN, what it means for you personally, and what steps to take if your business is struggling with tax debt.

What Is a Director Penalty Notice (DPN)?

A Director Penalty Notice is a formal notice issued by the ATO that can make directors personally liable for certain unpaid company tax debts. These typically include:

• PAYG withholding

• GST

• Superannuation Guarantee Charges (SGC)

There are two types of DPNs:

• Non-lockdown DPN – You have 21 days from the issue date to act (e.g. pay the debt, appoint a liquidator, or administrator) to avoid personal liability.

• Lockdown DPN – You’re automatically personally liable and cannot avoid it unless the debt is paid in full. This usually happens when your company has failed to lodge required returns on time.

How Are DPNs Delivered?

This is where many directors get caught out.

DPNs are sent via physical mail to your residential address listed with ASIC—not your business or postal address, and not to your accountant. If you’ve moved and haven’t updated your ASIC details, you may not even know a DPN has been issued until it’s too late.

How to Check If You’ve Been Issued a DPN

Unfortunately, there’s no public search tool or automatic alert system. But here are five practical ways to check if you may have received a DPN:

1. Log Into ATO Online Services (via myGov)

If you're listed as a company director, you can access your ATO correspondence through myGov. While DPNs are sent by post, checking your ATO account can reveal other related notices or signs of recovery action.

How to check:

• Log into myGov

• Link your ATO account if it isn’t already

• Click the ATO tile and go to ‘Communication’ > ‘Communication History’

• Look for any recent correspondence addressed to you personally

2. Check Your Mail and Residential Address

Review any physical mail sent to your ASIC-listed residential address. If you’ve moved, contact the current occupants or set up mail redirection. Remember, the 21-day clock on a non-lockdown DPN starts from the issue date, not when (or if) you receive it.

3. Review Your ASIC Records

Ensure your director details are current. You can search your company’s record on the ASIC website to confirm the residential address linked to your directorship. If it’s outdated, update it immediately to avoid missing critical notices like a DPN.

4. Speak to Your Accountant

While your accountant can provide insight into your company’s ATO lodgement status and tax debt position, it's crucial to understand that DPNs are not sent to accountants. They’re issued directly to directors at their personal ASIC-listed address. So even if your accountant is managing your tax affairs, they might not know a DPN has been sent unless you tell them.

5. Get Help from a Pre-Insolvency Advisor

If you suspect a DPN may have been issued—or you’re worried about mounting ATO debt—it’s important to speak with a professional immediately. As pre-insolvency specialists, we can:

• Assess your DPN exposure

• Liaise with the ATO on your behalf

• Explore your options, including payment arrangements, voluntary administration, or liquidation if necessary

Why Early Action Matters

A DPN can have serious consequences, including the potential for the ATO to initiate recovery action against your personal assets. Once a lockdown DPN is in place, your options to avoid liability are extremely limited.

That’s why early detection—and early action—is critical.

Need Support with ATO Debt or a DPN?

If you’re a company director feeling the pressure of ATO debt or worried about whether a DPN has been issued, don’t wait until it’s too late.

Contact our team today for confidential, expert advice on your options. We help business owners and directors navigate tax debt, avoid personal liability where possible, and reset their financial future with confidence.