ATO Tax Debt & Director Penalty Notices: How Property Refinancing Can Protect Personal Assets
National business recovery and insolvency firm Jirsch Sutherland warns that company tax debt is increasingly becoming a director's personal problem.
In the 2024-25 financial year, the Australian Taxation Office (ATO) issued 84,529 Director Penalty Notices (DPNs) to directors of approximately 64,000 companies as part of its efforts to speed up debt recovery. That’s a 136% increase on the prior financial year.
“We’ve seen a significant increase in Director Penalty Notices, garnishee notices being issued and assets being frozen,” said Jirsch Sutherland partner Malcolm Howell.
Once a DPN is issued, directors can be held personally liable for company tax debt, and combined with personal guarantees, this can put personal assets at risk.
“If you’re carrying significant tax debt, now is the time to deal with it,” said Howell.
Refinancing could offer a practical solution for eligible borrowers. With Direct Credit Home Loans, you could refinance your residential or commercial property to consolidate ATO tax debt and other business debts into a single loan.
A tax debt consolidation loan can help you clear your ATO debt before enforcement action escalates.
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Direct Credit Home Loans helps eligible borrowers access ATO tax debt refinancing loans fast. Contact us on (07) 3726 1124 or email [email protected] to explore options.
