Proposed legislation before Parliament amending the Directors Penalty Regime was withdrawn unexpectedly yesterday!

The proposed legislation was to include amendments to:

• allow the ATO to immediately (without first issuing a Director Penalty Notice) commence recovery of all director penalties when the company’s unpaid liability remains unpaid and unreported three months after the due date.
• impose a personal liability on directors for unremitted superannuation contributions, in addition to unpaid PAYG.

News that the proposed amendments had been withdrawn came quite unexpectedly to most industry professionals, including Irish Bentley Lawyers.

This means business as usual for directors ….but for how long? According to sources in media* “Assistant Treasurer Bill Shorten said the measure would be re-introduced in early 2012 following more consultation with stakeholders.”
Opposition treasury spokesman Joe Hockey said “The government was using a sledgehammer to crack a nut and thankfully the nut has rebelled.”

Rather than continue to accrue company debts directors should be urged to seek assistance, as it is likely that laws will be eventually be passed where directors will be imposed with greater direct personal liability.

Irish Bentley Lawyers will continue to advise of any developments as and when they happen.

*Media source: Sydney Morning Herald ‘Directors get reprieve from super liabilities’ 22/11/2011.