What are director’s duties for tax purposes?
Understand what tax and superannuation responsibilities apply to a company director.
Summary
Company directors are responsible for ensuring the company meets its tax and superannuation obligations. In some cases, directors may be personally liable for certain unpaid company amounts through the director penalty regime.
What this means
A company is a separate legal entity, but its directors have responsibilities under the tax law. Directors must ensure the company lodges required returns and pays PAYG withholding, superannuation guarantee and GST amounts on time. Failing to do so can lead to director penalties.
Under the director penalty regime, the ATO can recover certain unpaid company amounts from a current or former director personally, using a director penalty notice. Directors may have defences in specific circumstances, but the safest position is to actively monitor the company’s tax and super obligations and act quickly if issues arise.
Typical actions
- Understand what tax and super obligations the company has.
- Ensure returns are lodged on time, even if the company cannot pay in full.
- Monitor PAYG withholding, GST and super guarantee obligations closely.
- Contact the ATO early if the company cannot meet its obligations.
- Speak with a registered tax agent, accountant or lawyer if a director penalty notice is issued.
Official ATO sources
Last checked: 25 August 2026
Director penalties
Explains when directors can be personally liable for company tax debts.
Business structures – key tax obligations
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Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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