New Superannuation Personal Liability Regime
Before you become a director
If you are about to become a company director, check for any unpaid or unreported PAYG withholding or SGC liabilities.If you become a company director and the company has outstanding PAYG withholding and SGC obligations, you will become personally liable for a penalty equal to these amounts (these are called director penalties).
As a new director, you have 30 days, starting on the day of your appointment, before you become liable to director penalties equal to both:
- all of the company's unpaid PAYG withholding liabilities;
- all unpaid SGC liabilities from 1 April 2012.
- pays their PAYG withholding and/or SGC debt in full
- appoints an administrator under section 436A, 436B or 436C of the Corporations Act 2001
- begins to be wound up (within the meaning of the Corporations Act 2001).
For PAYG withholding, you will also be liable for any unpaid liabilities for reporting periods that started while you were a director, except if you resigned before the first withholding event in that period.
For SGC, you will also be liable for any unpaid liabilities for reporting periods that started while you were a director, except if you resigned before the last day of the quarter.