Frequently Asked
Questions

A Director Penalty Notice (DPN) is a formal notice from the Australian Taxation Office (ATO) making you personally liable for your company's unpaid PAYG withholding, Superannuation Guarantee Charge (SGC), and/or GST.

There are two types:

• Non-lockdown DPN — issued where the debt was reported on time but not paid. You have more options, including placing the company into voluntary administration or liquidation to remit the penalty.
• Lockdown DPN — issued where the debt was not reported within 3 months of the due date. Your options are severely limited — essentially, you must pay the debt in full.

The critical deadline is 21 days from the date on the notice. If you have received a DPN, call us immediately on 0439 717 166.

The Small Business Restructuring (SBR) process, introduced under the Corporations Act 2001 in January 2021, allows eligible small businesses to restructure their debts while the directors remain in control of the company.

To be eligible, the company must generally have: total liabilities of less than $1 million, tax and superannuation lodgements up to date, and not have previously used the SBR process or voluntary administration in the past 7 years.

The process involves appointing a registered small business restructuring practitioner who works with the company to develop a restructuring plan for creditors to vote on. It is faster and significantly less expensive than voluntary administration.

We can explain whether SBR may be appropriate for your situation and connect you with a qualified practitioner.

A Statutory Demand under section 459E of the Corporations Act carries a strict 21-day deadline. If you do not pay the debt, secure the debt, or apply to a court to have it set aside within 21 days, the company is deemed insolvent.

That presumption of insolvency can then be used to apply to the court to wind up the company — and you could face personal liability as a director for trading while insolvent.

There are grounds to have a Statutory Demand set aside (for example, if there is a genuine dispute about the debt, or if the demand is defective on its face) — but acting fast is absolutely critical. Contact us on 0439 717 166.

An ATO garnishee notice allows the ATO to reach directly into your bank accounts or intercept payments due to you — without a court order. It is one of the ATO's most powerful collection tools.

Whether it can be stopped or reduced depends on your specific circumstances, the size of the debt, your lodgement compliance history, and whether a viable payment arrangement can be negotiated. In some cases, the ATO will agree to release or modify a garnishee if you can demonstrate genuine commitment to resolving the underlying debt.

We can help you understand your options and which steps are most likely to produce a result. Call 0439 717 166.

No. Tax Help Debt Assist will never invoice you for consultations, discovery conversations, or referrals — unless an engagement letter is issued stating otherwise.

Every conversation is free and completely confidential. There is no obligation to do anything or engage anyone as a result of speaking with us.

Voluntary Administration (VA) is a process designed to maximise the chances of saving a company or its business. An independent administrator takes control and has approximately 20–25 business days to investigate the company's affairs and report to creditors. The outcome could be a Deed of Company Arrangement (DOCA), returning the company to the directors, or liquidation.

Liquidation is the formal winding up of a company. A liquidator is appointed, assets are realised, debts are paid in order of priority under the Corporations Act, and the company is ultimately deregistered and ceases to exist.

The right path depends heavily on your specific circumstances — the nature of the debt, the viability of the business, creditor positions, and director circumstances. We can help you understand both options in full.

A Deed of Company Arrangement (DOCA) is a binding agreement between a company and its creditors about how the company's affairs will be dealt with going forward. It is the most common positive outcome of a voluntary administration process.

A DOCA typically allows the company to continue trading while paying creditors an agreed amount — often a proportion of the total debt — over a defined period. Once the terms are fulfilled, the company is released from the remaining debts covered by the deed.

DOCAs can be an effective way to preserve a business and its employees while providing creditors with a better return than they would receive in a liquidation.

In Australia, bankruptcy generally lasts 3 years and 1 day from the date you file your Statement of Affairs with AFSA (Australian Financial Security Authority), unless your trustee lodges an objection to discharge — in which case it can be extended to 5 or 8 years.

After discharge, most unsecured debts are released. However, some obligations survive bankruptcy, including: HECS/HELP and other student loans, court-ordered fines and penalties, child support, and debts incurred by fraud.

During bankruptcy you may have restrictions on travel, income contributions above a threshold, and engaging in business. We can walk you through what bankruptcy would actually mean for your specific situation.

In some circumstances, yes — though it is rare and typically a genuine last resort. The ATO has broad powers to recover tax debts, and if they have obtained a judgment against you personally (for example, through a Director Penalty Notice), they can seek to enforce that judgment against personal assets, including real property.

In practice, the ATO more commonly uses garnishee notices, payment agreements, and charge orders rather than forcing a sale of a family home. However, the risk is real and depends heavily on the size of the debt, your personal liability position, and whether you have other assets available.

If you are concerned about your home, talk to us as early as possible — early action dramatically expands your options.

Absolutely. If you already have an accountant, lawyer, or advisor you trust, we are more than happy to work alongside them — helping them understand the full financial picture, assisting with the plan, and supporting the execution.

We are equally happy to provide a frank second opinion on the advice or strategy you've been given, without any agenda or commercial interest. Many accountants are excellent at tax compliance but have limited practical experience with ATO enforcement, insolvency, or restructuring — and that's precisely where we add value.