Director Penalty Notice Finance Documents Checklist
A fast commercial finance assessment starts with a complete, internally consistent file—not a larger volume of disconnected documents.
General information only. Obtain urgent legal, tax and insolvency advice about any DPN. Basic Finance assists with genuine commercial and business-purpose finance. All facilities remain subject to lender assessment.
The objective is to let advisers and prospective lenders verify the liability, deadline, borrower, loan purpose, security position and repayment exit without repeatedly stopping for missing information.
What should be collected immediately?
A Director Penalty Notice can expose a director personally to specified unpaid company tax and superannuation liabilities. The ATO states that director penalties may relate to PAYG withholding, GST and superannuation guarantee charge. Once a DPN is issued, recovery measures may include garnishee notices, credit offsets and legal proceedings.
Preserve the original notice and envelope, record how and when it was received, and engage appropriately qualified legal, tax and insolvency advisers immediately. A finance application does not pause a statutory period.
Minimum legal pack
- complete DPN, including every schedule and page;
- envelope and delivery evidence;
- related ATO correspondence; and
- adviser contact details.
Minimum finance pack
- verified amount required;
- property addresses and ownership;
- current mortgage statements; and
- clear proposed repayment exit.
ATO and DPN documents
The lender needs a reliable funding figure, while the director’s advisers need to understand the legal and tax position. Those workstreams overlap but are not the same.
Director Penalty Notice
Supply a complete, legible copy. Do not send only the first page or a cropped photograph that omits dates, reference numbers or schedules.
Current ATO account information
Provide current integrated client account and other relevant statements, together with a liability breakdown by type and reporting period where available.
Payout or payment instructions
Obtain verified details for the advised payment pathway. Approximate figures can create a settlement shortfall.
Lodgment history
Advisers may need BAS, activity statements, SGC statements and lodgment dates to assess whether penalties may be locked down or non-locked-down.
Include records of payments, credits, objections, arrangements, estimates or amendments that could affect the amount. The finance submission should not state that a penalty will be remitted unless a qualified adviser has confirmed the position.
Property and existing-mortgage documents
- Property address and ownership: confirm the registered owners and whether ownership is personal, corporate, trustee or another structure.
- Rates notice: a current council rates notice can support ownership and property identification.
- Existing mortgage statement: include the current balance, account status, loan number and lender.
- Formal payout: where available, obtain a current payout figure including interest, arrears, default costs and discharge fees.
- Value evidence: provide a recent appraisal, existing valuation or purchase evidence for initial discussion, while recognising that a lender may order an independent valuation.
- Lease information: for commercial or tenanted property, include leases, rental schedule and arrears information.
- Planning and development documents: for land or development security, include approvals, plans, contracts, feasibility, quantity-surveyor information and project status where relevant.
- Other interests: disclose caveats, second mortgages, charges, writs, leases, options or disputes affecting title or settlement.
Available funds are determined after the lender’s acceptable property value, permitted leverage, mortgage payouts, retained interest, establishment charges, valuation, legal costs and other approved deductions.
Identity, entities and business-purpose evidence
Identity and authority
Photo identification, address evidence and information confirming who is authorised to act for each borrower, guarantor, company or trust.
Company records
ASIC company extract, constitution where required, director and shareholder details, and board or trustee approvals relevant to the transaction.
Trust documents
Complete trust deed and amendments, trustee information and evidence of borrowing and security powers where a trust is involved.
Purpose statement
A concise explanation of the genuine commercial use of funds, who will receive the money and how the transaction relates to the business.
Do not describe a personal, domestic or household purpose as commercial merely because property is offered as security. Where a DPN is a director’s personal liability, the proposed borrower and flow of funds require particular care and legal review.
Financial-position documents
Depending on the lender and structure, the file may also require management accounts, recent financial statements, bank statements, BAS, aged creditors and debtors, cash-flow forecasts, tax portal evidence and a schedule of all liabilities. ASIC emphasises that directors must remain informed about the company’s financial position and maintain adequate records.
Documents supporting the exit strategy
Refinance exit
Include servicing evidence, current financial information, refinance correspondence and a realistic path to the proposed long-term lender.
Property-sale exit
Provide the agency agreement, marketing evidence, appraisal, sale contract if available, expected costs and a realistic settlement timetable.
Asset-sale exit
Identify the asset, ownership, expected net proceeds, buyer interest and evidence supporting value and timing.
Receivables or business cash flow
Provide contracts, invoices, debtor ageing and cash-flow evidence showing how and when the facility can be repaid.
A credible exit should be specific, timed and supported by documents. “Refinance later” or “sell if necessary” is usually too vague for an urgent short-term facility.
How to assemble a lender-ready DPN finance submission
- Write a one-page scenario summary. State the exact requirement, time constraint, borrower, commercial purpose, security and exit.
- Create a sources-and-uses table. Show every payout, proposed use, cost and funding source so the net requirement is transparent.
- Use a property schedule. List each property, owner, estimated value, existing debt, available evidence and proposed security position.
- Add a liabilities schedule. Disclose ATO, secured, unsecured, related-party and contingent liabilities that may affect settlement or solvency.
- Label every document. Use clear file names with property, entity, document type and date. Avoid unlabelled screenshots.
- Resolve inconsistencies before submission. Explain differences between the notice, payout, ATO statement, application and adviser instructions.
Valuation, credit, legal due diligence, priority arrangements, documents and settlement dependencies still apply.
Documents to have ready
DPN and ATO
- complete notice and envelope;
- current ATO statements;
- liability breakdown;
- payout instructions; and
- lodgment history.
Security
- rates notice;
- mortgage statements;
- formal payouts;
- value evidence; and
- leases or project documents.
Borrower
- identification;
- company extract;
- trust deed;
- authority documents; and
- purpose statement.
Exit and liabilities
- exit evidence;
- liabilities schedule;
- cash-flow information;
- sale or refinance documents; and
- adviser details.
DPN finance document FAQs
Do I need every document before making an enquiry?
No. An initial discussion can begin with the DPN, verified requirement, property details, existing debt and proposed exit. Missing items should then be supplied promptly.
Will a property appraisal be enough?
It may assist an initial review, but a lender may require an independent valuation before approval or settlement.
Why is a current mortgage payout needed?
The account balance may not include discharge interest, arrears, default charges or fees. A current payout helps calculate net usable funds accurately.
Are full financial statements always required?
Requirements vary by lender and structure. Some facilities use an asset-and-exit-focused assessment, but identity, purpose, security, liabilities, legal risks and exit still require verification.
Does sending documents pause the DPN deadline?
No. A finance enquiry or application does not pause the applicable period. Continue legal, tax and insolvency work in parallel.
Does a complete file guarantee settlement?
No. Finance remains subject to lender criteria, valuation, due diligence, documentation, legal requirements and settlement dependencies.
Further reading
Have the core DPN finance documents ready?
Basic Finance can review a genuine business-purpose, property-backed requirement and explain the next information needed for lender assessment.