What is a Director Penalty Notice?

Directors of a company are responsible for ensuring that the company complies with its tax and superannuation obligations, such as ‘pay as you go’ withholding tax (PAYGW), net Goods and Services Tax (GST) and Superannuation Guarantee Charge liabilities (SGC).

The ATO may choose to recover the unpaid amounts from either the company directly or from the directors personally by issuing a Director Penalty Notice (DPN).

Therefore, as a director, if your company fails to meet the above obligations and lodge its returns accordingly within the due date, you will be held personally liable for your company’s tax debts. If a company has more than one director, the ATO may in its discretion recover the company’s unpaid amounts from each of the directors equally.

When are you likely to receive a DPN?

DPN liability is triggered in two different scenarios:

1. Where your company has lodged its Business Activity Statements (BAS), Instalment Activity Statements (IAS) and/or SGC statements within 3 months of the lodgement due dates and have reported the unpaid amount of PAYGW, net GST and/or SGC; or
2. Where your company has lodged its BAS, IAS and/or SGC statements and reported the unpaid PAYGW, net GST and/or SGC amounts to the ATO after more than 3 months after the lodgement due date, or
3. Where your company has failed to lodge and report the unpaid PAYGW, net GST and/or SGC amounts for more than 3 months after the lodgement due date.

What should you do when you receive a DPN?

In case of the first scenario above, you will have a 21-day window to comply with the Notice by either:

1. paying the specified penalty amount in full,
2. negotiating a payment plan with the ATO to settle your company’s outstanding debts,
3. appointing an administrator or small business restructuring practitioner to the company as per the Corporations Act 2001 provisions, or
4. appointing a liquidator to wind up your company.

In the second and third scenarios above, you will be required to remit payment of the unpaid amounts in full in order to comply with the penalty notice.

New Directors and Resigning Directors are not Exempted

If you are a newly appointed director, you will still be liable for director penalties on your company’s unpaid tax amounts that were due before your appointment, unless you ensure that your company does the following within 30 days of your appointment:

1. pays its debts in full for PAYG withholding, net GST from 1 April 2020 and SGC from 1 April 2012;
2. appoints an administrator or small business restructuring practitioner under the Corporations Act 2001 provisions; or
3. your company commences winding up.

Kindly note that even if you resign as a director within 30 days of your appointment, you will not be absolved of your liabilities as a new director.

Similarly, resigning directors will continue to remain liable for directors penalties in relation to their company’s outstanding tax liabilities that were due and payable before their date of resignation. In case of liabilities that arise after the date of resignation, you, as a resigning director, will continue to remain liable, if the first withholding event (for PAYG withholding and GST) and/or the SGC for the reporting period occurs or becomes payable before the date of your resignation.

How is it enforced?

In the event that you fail to comply with the notice within 21-day period specified above, the ATO will commence recovery actions against you for the company’s unpaid tax debts. This may be done by either:

1. issuing a Garnishee Notice,
2. off-setting any of your personal tax credits against the director penalty amounts, or
3. by initiating legal debt recovery proceedings against you for the unpaid overdue amounts.

Defences

As a director, you will not be personally liable for a DPN if you can establish one of the following defences:

1. Illness: If the director not take part, and it would have been unreasonable to expect the director to take part, in the management of the company during the relevant period due to illness or another acceptable reason; or
2. All reasonable steps: If the director took all reasonable steps to ensure that the Company:

• paid all its outstanding amounts in full;
• appointed an administrator and/or a small business restructuring practitioner; or
• commence winding up proceedings.

1. Reasonably Arguable Position: This defence applies in the case of unpaid SGC liabilities, wherein the company treated the Superannuation Guarantee (Administration) Act 1992 as applying in a way that could be reasonably argued, was in accordance with the law, and took reasonable care in applying that Act.

The courts have held that a defence must cover the entire period that the director was under an obligation to ensure that their company’s liabilities were paid, including the period of the breach, due date, and expiry of the notice. Furthermore, a defence will not be valid if the director relied on others to meet their own obligations, such as other directors or professional advisors, or if they did not participate in the management of the company. Such conduct would constitute a breach of duty regardless of whether the director is aware of this or not.

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.

In an action brought forth by the Australian Competition and Consumer Commission (ACCC), Secure Parking has been fined almost $11 million for engaging in misleading conduct and making false representations to its customers.

Operating more than 600 car parks across Australia, Secure Parking has been one of the nation’s most well-known and trusted parking companies. From July 2017 to June 2022, Secure Parking’s ‘Secure-a-Spot’ online booking service faced significant backlash for claiming to reserve spaces whilst being unable to fulfil these bookings due to delays in system updates.

Despite being advertised across social media, email correspondence, and other marketing methods, ‘Secure-a-Spot’ was not a guaranteed service, leading to inconvenience and monetary loss across more than 10 million bookings between 2017 to 2022.

Secure Parking has admitted to making false or misleading representations to its customers, and has fully cooperated with proceedings and the ACCC.

Alongside the fine, the Federal Court of Australia have ordered Secure Parking to display notice of the ongoing case on their website, as well as conduct an internal review of the company’s process of handling complaints and compliance with Australian Consumer Law.

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.

The rules around riding a bike can be quite complicated.

For starters, there are strict laws in place for pillions(passengers of a motorcycle/ motor scooter). The passenger of a motor bike/ scooter must be above the age of 8 unless the passenger is in a sidecar. Previously the law was that the pillion only needs to be able to reach both footpegs of the bike. A motorcyclist can only carry 1 pillion passenger if they have a provisional P2 licence. Once receiving a full riders licence, they can carry the amount of passengers that their vehicle is designed for.

Now, what is the minimum age for riding a bike? To get your learners rider licence which qualifies you to ride a motorbike, motor scooter, trike or three-wheeled scooter on NSW roads be at least 16 years and 9 months of age whereas getting a drivers licence, you only need to be 16.

There are a lot of rules though which concern children who ride bicycles and e-bikes. For starters,  bicyclists under the age of 16 are only legally allowed to ride on the pathway unless there is a sign that says not to. 

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.

Former Premier of NSW and member for Willoughby, Gladys Berejiklian, has lost her appeal to overturn the Independent Commission Against Corruption’s (ICAC) findings that she engaged in ‘serious corrupt conduct’ alongside former member for Wagga Wagga, Daryl Maguire.

On the 26^th of July 2024, the NSW Court of Appeal dismissed all 13 grounds and dismissed Ms Berejiklian’s application for a judicial review of the ICAC’s findings.

In 2023, the ICAC found that between 2012 and 2018, Mr Maguire improperly used his office and resources as a member of Parliament to benefit a company he was a director for, G8wayInternational Pty Ltd, as well as failing to disclose his position and interest towards the same in accordance with the Constitution (Disclosure by Members) Regulation 1983.

Furthermore, Mr Maguire and Ms Berejiklian were found to be involved in an undisclosed personal relationship whilst the former Premier had presided over the Expenditure Review Committee’s (ERC) meetings which approved Maguire’s interest in grants of public monies for the Australian Clay Target Association (ACTA) and the Riverina Conservatorium of Music (“the RCM”).

The Commission found that the former Premier engaged in ‘serious corrupt conduct by breaching public trust’ in relation to her exercise of power without disclosing her personal relationship with Mr Maguire, creating a position of a conflict of interest which was likely to influence her public duty and role.

In the majority dismissal by Chief Justice Andre Bell and Court of Appeal President Julie Ward (with Justice Anthony Meagher dissenting), it was found that on the evidence, the former Premier “understood or believed that by supporting these two [funding] proposals she would please Mr Maguire… and thereby strengthen or secure their underlying relationship.”

“Serving the people of NSW was an honour and privilege which I never took for granted” said the former Premier in a statement following the Court of Appeal’s decision.

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.

Children born or raised from separated households still have the ability to flourish and be cared for just as well as families without separated parents. The steps to this resolution, however, involve continuous support and attention from both carers and all parties involved in the situation in order to maintain positive relationships with relatives, and crucial individuals present in their lives, where safety is concerned.

Children’s Needs

The needs of a child in an emotionally stressful situation such as the separation of their parents should be heavily considered and met to the best possible standard. This might resemble validating your child’s concerns, reassuring them, allowing them to make their own decisions, where safe, and avoiding expressing your personal issues with your child. Ultimately, prioritising their wellbeing should be your focus.

Parenting Arrangements

Making legal arrangements for your child should be undertaken while discussing their best interests.  Factors to consider when formatting arrangements is:

• Any arrangements which promote your child’s safety, including safety from being subjected to family violence, neglect, or abuse.
• The age of your child, as the routine will differ depending on what your child’s daily life might encompass, while ensuring they stay flexible.
• How their time will be allocated and with who
• Their contentment with the arrangements as well as giving notice of future change.

If arrangements can be agreed on, then a parenting plan can be made or formalities such as a consent order to officiate the arrangement. If an agreement cannot be met, however, the next step might be a dispute resolution or mediation. As a last resort, you can apply to the court for parenting orders.

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809

Australian police have arrested a 14-year-old boy after a stabbing at the University of Sydney on Tuesday morning, which triggered a lockdown of the university buildings. 

Emergency crews treated a 22-year-old man, who was taken to a hospital in a serious but stable condition, New South Wales state police said in a statement. 

The 14-year-old boy who allegedly stabbed a student in the neck at the University of Sydney has charges against him last year dropped, NSW Police Minister Yasmin Catley says. 

The teenager is in hospital undergoing health assessments after the incident at the university's primary campus in Camperdown on Tuesday morning. 

Paramedics responded to reports of a stabbing about 8:35am and found a 22-year-old man suffering from a single stab wound to the neck. 

The man and the teenager were not known to each other, police said. 

Police allege the man was stabbed by the teenager, who was dressed in camouflage at the time of the attack, with a kitchen knife. 

The student was treated at the scene and taken to nearby Royal Prince Alfred Hospital in a serious but stable condition but was released a few hours later. 

Officers established a crime scene after the stabbing and were told the teenager had boarded a bus on Parramatta Road. 

Police arrested the boy near Royal Prince Alfred Hospital shortly after.

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.

Julian Assange is an Australian editor, publisher, and activist whose decade-long legal saga began with the development of WikiLeaks- a non-profit media organisation and publisher of leaked documents, which has published classified documents provided through anonymous sources. The company was co-founded by Assange in 2006.On April 5, 2010, WikiLeaks posted a video entailing a US military helicopter firing on and subsequently killing two journalists and several Iraqi civilians in 2007. For the next year, WikiLeaks would continue to publish more than a quarter of a million posts about the Afghanistan and Iraqi wars as well as US Diplomatic Cables.  

On 23 May 2019 the US Government indicted Assange on 18 charges under the Espionage Act 1917, which accused him of conspiring with American former Army Intelligence Analyst, Chelsea Manning. On December 2021 the British High Court ruled for Assange’s extradition to the US under humane conditions, and in May 2022 the country’s Supreme Court denied permission for Assange to appeal his extradition. In May 2023, Australian Prime Minister, Anthony Albanese supported a motion in parliament for Assange’s release, expressing that “nothing is served” by his incarceration.  

Last February Assange’s lawyers launched a final legal bid to prohibit his extradition to the US, and last month the High Court ruled that Assange could appeal his extradition on arguments about his disadvantage of not being a US Citizen and whether he will receive free-speech protections.  On 24 June 2024, Assange reached a plea deal with the US Justice Department. Two days later, Assange faced court in Saipan and pleaded guilty to one charge of espionage conspiring to unlawfully disseminate classified national defence information. He was sentenced to 62 months in prison, which credited his time already served in Belmarsh prison- pronouncing him a “free man”. 

The end of the financial year (EOFY) is an important time for your business. You'll need to complete bookkeeping, tax returns and plan for the new financial year. This is a time when all businesses are required to finalise their books for a 12-month period and report all income and claim any deductions available to the business. This helps to determine how much tax the business must pay to the government or how much tax the government owes the business. To prepare for the End of Financial Year you should, review your financial record, reconcile accounts, prepare financial statements, evaluate your tax situation, set financial goals and plan for your next fiscal year, and speak to a financial advisor.

First, check what financial tasks you need to complete, e.g.

• a summary of your income and expenses in a profit and loss statement.
• summaries of your record of debtors and creditors
• collating records of asset purchases or expenditure on improvements (to calculate depreciation expense claims and for capital gains)
• completing and lodging your income tax returns
• lodging yearly reports or returns for different tax types such as:

- Pay as you go (PAYG), including finalising income statements for Single Touch Pay role

- fringe benefits tax

- goods and service tax (GST)

• meeting superannuation requirements
• making digital copies of any paper records and backing them up.

Furthermore, find out which tax deductions and concession you can claim. You can claim deductions for most business expenses, as long as they directly relate to earning your income. For example, you may be able to claim deductions if your business: has set up a website, operates at home, has motor vehicle expenses, etc.

Prepare your financial statements, ensuring they are accurate and up-to-date. This process involves collecting all relevant financial data, including income, expenses, assets, and liabilities. Once gathered, organise this information into key documents such as the balance sheet, income statement, and cash flow statement. These statements will provide a comprehensive overview of your financial health and performance, enabling you to make informed decisions for the future. Review each document carefully and consider seeking the advice of a financial professional to ensure compliance with accounting standards and regulations.

Setting achievable goals can help you to feel accomplished and good about your situation throughout the financial year. If you’re a sole trader, your goal may be purely financially motivated. For example, if you aren’t happy with how much you earned last year, you can work out what you need to earn in a day, a week and a month before writing down the target. However, if you work for a business that is not your own, you may wish to learn new things to advance your career or take on more in your role so that you can put yourself forward for a pay rise before your next tax return. If this is the case, list out the specific things you need to do or learn and tick them off as you go. Having goals in writing can help you achieve them.

Evaluate your tax situation and consider seeking advice from a certified financial planner or tax professional. They can help you identify potential deductions and credits you may qualify for, ensuring you maximize your return and minimize your liabilities. Additionally, staying informed about changes in tax laws and regulations is crucial, as these can impact your financial planning and obligations. By taking a proactive approach, you can make more informed decisions and potentially improve your overall financial health. Remember, a well-planned tax strategy can lead to significant savings and a more secure financial future.

Anyone is able to view proceedings within the majority of NSW Courtrooms through a principle known as ‘open justice’. The principle is said to be essential to the administration of fair and just trials, ensuring awareness of the wider Australian community towards our legal system. Furthermore, media outlets are able to publish accurate and unbiased reports of the proceedings (John Fairfax & Sons v Police Tribunal of NSW (1986)), broadening access to understanding NSW Courts.

If you would like to view the proceedings of a NSW Court, there are a few rules and considerations to remember.

• Whilst most Courts are open to the public, this does not include Family Law or Children’s Courts matters. Furthermore, specific courtrooms may be subject to suppression and non-publication orders, which prohibit or restrict the disclosure of information within the courtroom or are completely closed to the public. Typically, clear signs are used to convey any restrictions which apply.

• It is against the law to record, both video or audio, or take photographs within courtrooms and court premises without permission from a judicial officer. The offence holds a maximum penalty of $22,000 and/or imprisonment for up to 12 months.

• Upon arrival at Court, a security check with similar procedures to an airport will occur. Ensure compliance with all directions by police or security teams.

• It is important to behave in an orderly and respectful manner, including wearing appropriate and tidy clothing.

• As a signal of respect, it is customary to bow your head towards the Coat of Arms (located behind the judicial officer) before entering and exiting courtrooms.

• Do not approach judicial officers or parties involved in a matter unless spoken to first. Always address a judicial officer with ‘Your Honour’ (judges and magistrates) or ‘Registrar’ (registrars).

When in doubt, court staff will be able to assist with any queries or concerns.

Open justice plays a significant role in maintaining the transparency of our legal system, however, it is important to follow appropriate etiquette within courts to ensure proceedings are efficient and fair.

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.