04 August 2017
Directors – Personal liability for superannuation guarantee charge
Dear Mentor,
I act for a director of a company.
The company did not pay superannuation contributions for its employees for the past four years, owing around $150,000.
The company is now going to be wound up.
Is the director still personally liable for the super owed?
If so, is it possible to negotiate with the ATO?
Thank you for the question.
The amended Director Penalty Notice regime imposes a penalty on directors by way of a personal liability for the unpaid superannuation guarantee charge of the company. A director is personally liable if the superannuation payment is not made by the due date. Should the superannuation guarantee statement become more than three months overdue, the lock-down provision will apply and the director is permanently personally liable for the superannuation liability.
Placing the company into voluntary administration/liquidation will not remove personal liability.
The amended regime has been effective since 30 June 2012.
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