Updated November 12th 2013

From 1 July 2011 the company debts for which a director is personally liable have been extended to include unpaid employee superannuation guarantee amounts. The ATO also has extended recovery powers over certain unpaid company debts which are unreported for three months or more where the director is personally liable. These additional powers include; no 21 day grace period prior to recovery action and directors and associates of directors being unable to claim PAYG Withholding amounts in their personal tax returns while the company has outstanding tax debts.

These measures have been introduced to counter fraudulent phoenix activity where a business operator continually rolls over a business into a new company leaving behind outstanding debts