The laws regarding director liability have tightened.Â Â The new lawsÂ essentially mean directors will beÂ personally liable for unpaid (or unlodged and unpaid) superannuation obligation or PAYG Withholding for employees that are more than 3 months overdue.
Mostly of you, my clients, have good stable robust businesses so hopefully this will never effect you however I think it is still valuable to keep in mind.
This means that if your business starts to get into trouble you should take immediate steps to assess if youÂ will be able toÂ trade out, otherwise you should consider liquidation to aviod personal liability. To know if you are getting into trouble you need to have a reporting system which allows you to easily and regularly monitor your pefomance. Talk to us if you need help with this.
PS: This is why business owners SHOULD get paid more than employees – look at the risk they have to take on in running a business!
For the Parliment of AustraliaÂ release click on the link below