Your co-director has a DPN. Check whether you are exposed too

The shock usually lands on one director first

When one co-director gets a director penalty notice, the other often assumes it must be a separate problem. It usually is not that simple. ATO director penalty rules can make each director personally exposed for company PAYG withholding, GST and superannuation guarantee debts, depending on the period and the lodgement history. ([legislation.gov.au](https://www.legislation.gov.au/C1953A00001/2026-01-01/2026-01-01/text/original/pdf/2?utm_source=openai))

That matters because waiting for “your” letter can waste the short window that still exists. The notice is not the start of the liability. It is the ATO’s formal step to recover an existing penalty, and the timing of notice and lodgement both affect what options remain. ([legislation.gov.au](https://www.legislation.gov.au/C1953A00001/2026-01-01/2026-01-01/text/original/pdf/2?utm_source=openai))

Start with mail and the ASIC record

First, check your own mail and the company’s mail trail. Then confirm the ASIC address for the registered office and principal place of business. ASIC says company addresses must be kept current and changes must be notified within 28 days, or a late fee can apply. ([asic.gov.au](https://www.asic.gov.au/for-business-and-companies/companies/changes-to-company-details/change-a-company-address?utm_source=openai))

That check is practical, not cosmetic. If the notice went to an old address, you still need to know when it was given and what address the ATO used. The 21-day response period runs from the notice being posted or left at the registered ASIC address, not from the day you finally read it. ([legislation.gov.au](https://www.legislation.gov.au/C1953A00001/2026-01-01/2026-01-01/text/original/pdf/2?utm_source=openai))

Source: Official guidance

Call the ATO before you guess your position

Next, contact the ATO and ask for the exact periods, amounts and liability types covered. That lets both directors compare the notice with the company’s lodgement history. If the debt was reported on time, different remission paths may still be available from those that apply when a liability was late or never reported. ([ato.gov.au](https://www.ato.gov.au/law/view/view.htm?PiT=99991231235958&docid=PSR%2FPS201118%2FNAT%2FATO%2F00001&utm_source=openai))

Do not rely on memory or on a quick summary from the bookkeeper. Ask for the BAS, GST and super records, then line them up against the notice. The ATO and the legislation both treat reporting timing as critical, especially where unreported amounts can lock down the penalty outcome. ([ato.gov.au](https://www.ato.gov.au/law/view/view.htm?PiT=99991231235958&docid=PSR%2FPS201118%2FNAT%2FATO%2F00001&utm_source=openai))

Discuss the options together, not in separate silos

A co-director problem is rarely solved by one director acting alone. The company may need to lodge overdue returns, make a payment proposal, appoint an administrator, appoint a small business restructuring practitioner, or move toward winding up, depending on the debt history and whether the notice allows remission through those steps. ([legislation.gov.au](https://www.legislation.gov.au/C1953A00001/2026-01-01/2026-01-01/text/original/pdf/2?utm_source=openai))

The hard part is that each director can have a personal stake in the same company debt. That means the conversation needs to cover the business position, the personal exposure, and the record that supports your next step. If you separate those issues, the file gets harder to fix and easier to misunderstand. ([legislation.gov.au](https://www.legislation.gov.au/C1953A00001/2026-01-01/2026-01-01/text/original/pdf/2?utm_source=openai))

Get advice now and keep the next move practical

Bring the notice, ASIC extract, company tax records, and any accountant emails to an independent adviser quickly. The goal is simple: confirm whether the notice is locked down or still remittable, and decide what the company can still do within time. This is general information only and not a substitute for legal, tax or insolvency advice. ([legislation.gov.au](https://www.legislation.gov.au/C1953A00001/2026-01-01/2026-01-01/text/original/pdf/2?utm_source=openai))

If you are the co-director who has not yet received a notice, do not wait passively. Check the mail, check ASIC, speak to the ATO, and compare options with the other director today. CRP coordinates independent qualified professionals who can help with turnaround support. Call CRP today before more time slips away. ([asic.gov.au](https://www.asic.gov.au/for-business-and-companies/companies/changes-to-company-details/change-a-company-address?utm_source=openai))