On 30 June 2012, changes to the law relating to the personal liability of company directors for unpaid obligations under the Superannuation Guarantee and Pay As You Go schemes came into force.
Company directors who do not report unpaid superannuation contribution liabilities by the due time risk being personally liable, even if they comply with the requirements of a subsequently issued Director Penalty Notice.
Accordingly, even if directors can’t pay the required funds by the due date, it is, to say the least, most prudent for them to report the liability by the due date. The first due date for the reporting of such liabilities is 28 November 2012.
The background to the above is that, under the present law, if company directors appoint administrators or wind up a company with outstanding superannuation guarantee debts, those directors can only avoid personal liability under the Director Penalty Notice Liquidation/Administration Safety Net if they report any outstanding debts from the June 2012 quarter before 28 November 2012, which is the “drop dead date” for the June 2012 quarter. After that, it is too late. “Drop dead dates” occur from quarter to quarter thereafter.
If company directors are in any doubt about the above liabilities, they should seek advice from their local MSI advisor.