Category Archives: faq-liquidation

What is a Director Penalty Notice?

Have you recently received a Director Penalty Notice (DPN) from the Australian Taxation Office (ATO), but don’t have the means to repay the tax debts being demanded?

Worried you might lose your family home or other valuable personal assets?

Don’t panic you may still have options to avoid strict personal liability, if you have lodged your Business Activity Statements and Superannuation Guarantee Statements (within 3 months of their due dates).  If you have lodged these statements but not paid the underlying debt, the ATO may issue a regular DPN and you will be given 21 days to avoid becoming personally liable for the PAYG and superannuation. This 21 day period starts ticking the day the ATO sends the Director Penalty Notice – so you must act fast.

What are my three options?

Your first option after receiving a regular Director Penalty Notice is to pay the debt owed in full. However, if you do not have the means to pay the debt, there are two formal solutions available to you.

The second option is to appoint a liquidator to your company. This option will avoid the director becoming personally liable. Please note that the appointment must be formally made within the 21-day period.

The third option is to appoint an administrator. The appointment of a voluntary administrator must likewise be formally made within the 21-day period.

What happens if I don’t meet the 21-day deadline?

Failure to take one of the 3 options within the 21 day time period of receiving a regular Director Penalty Notice means the director will become personally liable for the debt set out in the notice.

This could result in the director becoming bankrupt if they are unable to pay the debt, which may result in them losing personal assets and the family home.

Did you know there are several types of DPN notices? – be aware of the Lock Down Notice!

 If the director has failed to lodge their Business Activity Statements and Superannuation Guarantee Statement within 3 months of their due dates, then the director automatically becomes personally liable for the unpaid PAYG and superannuation. In these circumstances the ATO will issue a different type of notice.  This notice will be a lock down DPN. A lock down DPN can be issued by the ATO at any time, even after the appointment of a liquidator or administrator.

The only way to avoid a lock down DPN is to ensure that all Business Activity Statements and Superannuation Guarantee Statements are lodged within 3 months of their due dates.

The Importance of keeping your address current

DPNs are sent to the director’s residential address as recorded with the Australian Securities and Investments Commissions (ASIC). This is why it is crucial that your personal address is up-to-date with ASIC, otherwise you may miss receiving a DPN and will miss the opportunity to avoid personal liability.

Where does Australian Company Liquidations fit in?

At Australian Company Liquidations, we assist company directors to place their companies into liquidation or administration within the required time frame should they receive a regular DPN.  If you receive a lock down notice we can also assist with personal bankruptcy or a Personal Insolvency Agreement.

Remember to act fast as you only have 21 days from the date of the notice, so don’t delay taking action. Protect your personal assets now by calling us on our toll-free hotline at 1800 731 155.

The Low-Cost Australian Liquidators

Australian Company Liquidations are the low-cost Australian liquidators that you can trust to handle your corporate insolvency case.


Here are some of the reasons why.


  1. The only thing that we handle is company liquidations.

This means that over our many years in the industry, we have grown highly skilled and experienced in the field. It also means that we have refined our practice so that we can achieve the best case scenario for you.


  1. We are fully insured and licensed

Some of our competitors in the industry are unlicensed brokers who, once appointed, pass your case onto someone else. Not at ACL. Our Australian liquidators are all fully insured and registered with the Australian Securities and Investments Commission. Whoever you speak to on your first day will be the person who manages your case to the very end. You can be confident that the person who handles your case will have all the knowledge and facts needed to effectively liquidate your company; something that you won’t get if your case is passed to other companies.


  1. Your first initial consultation with us is FREE

We want to make sure that we are 100% confident that we can help your company before you appoint us. This is why your first initial consultation with our Australian liquidators is entirely for free. In this consultation, we can answer any questions that you may have and analyse your situation so we can determine whether liquidation is the appropriate solution for your company.


  1. We offer the lowest prices for our services

ACL offers the lowest-prices in Australian from any registered liquidator. If you happen to find a cheaper price, then provide us with a written quote and we will happily beat it.


Our services begin from just $3,500 (GST).


If you would like to know more about how ACL are the Australian liquidators for you, or if you are wondering whether company liquidation is the best solution for you, then please call us on 1800 731 155. Our toll-free hotline is open 24 hours so there will always be someone available there to help you.

Avoid Company Liquidation With These 2 Steps

Is company liquidation a threat that is starting to become all too real? This article will explain two simple steps you can take to avoid the threat of a company liquidation.


  1. Identify opportunities where you can increase cash inflow

Too often, company directors are in possession of surplus stock or occupy surplus space. This means that they are missing out on opportunities to increase their cash flow and make a little extra income.

We recommend that all company directors evaluate their stock levels and other underutilized assets. If stock levels and underutilize assets can be sold, company cash flow will improve. Even if this is temporary selling excess stock or subletting surplus space will allow company directors to pay off company debts.

Another way to increase cash inflow is by ensuring that you are sending out invoices to customers immediately and enforcing a vigorous payment process to make sure you get paid in a timely manner. This may include setting up an automated system that sends out payment reminders and enforcing late or dishonour fees. This will act as a great incentive for your customers to pay their fees on time so that you do not need to wait for delayed payments which will really disrupt your cash flow.


  1. Eliminate cash outflow where possible

While it is helpful to increase income in your company, it is also vital that you reduce expenditure where necessary.

Some ideas include:

  • Moving to a smaller office with lower rent
  • Reducing overhead costs
  • Changing to a cheaper or more efficient electricity or telephone bill
  • Cutting down on staff hours during quiet periods
  • Shopping around for better deals with suppliers
  • Evaluate your inventory control and ensure that you are not buying more stock than necessary

By following these two steps in your business operations, you can free up cash flow to repay company debt. Hopefully these measures will also help you avoid the threat of a company liquidation.


If you would like more information on company liquidation, then please contact Australia Company Liquidations. We are registered company liquidators who offer a FREE 24/7 hotline for Australian directors seeking expert advice. Please call us on 1800 731 155 now.

Four Signs of Company Insolvency

As a company director or owner, it is important that you keep an eye out for signs that your company may be insolvent or likely to become insolvent. This will prevent your company from trading whilst insolvent which can bear serious consequences.

Here are four signs that your business is headed towards company insolvency:

  1. Ongoing losses

If you find that your business is constantly losing more money than it is making, then that is a sure sign of company insolvency. Without making a profit, a business cannot survive in the long run.

  1. Bookkeeping records not updated

Another sign of company insolvency is poor financial records. One of the first signs that a company is struggling is when records are not kept up-to-date because the focus will most likely be on other tasks as opposed to bookkeeping. The Corporations Act states that this creates a statutory presumption of company insolvency.

  1. Delayed superannuation contributions

One of the warning signs is delayed superannuation contributions. One of the reasons why struggling businesses delay superannuation payments is because these fees are only paid every few months so it is less noticeable if they are late. Not only is this an indicator of company insolvency but it also can cause a director to become personally liable for these payments.

  1. COD Terms

If your suppliers or vendors suddenly implement cash-on-delivery (COD) terms on your arrangements then that is a signal of company insolvency. It shows that you had not been able to make payments by the agreed terms previously and this has raised concerns that you will not be able to pay for your products and or services on time.


If you have or are experiencing any of these four signs of company insolvency, then take action immediately. Delaying taking the appropriate steps to help your company can bear serious consequences for your business and for you as the director. Seek professional help from a reputable company that can assess your situation for you and help you make the best choice such as Australian Company Liquidations. ACL offers a free consultation to help directors who are facing company insolvency. Call us on our 24/7 toll-free hotline to speak to one of our fully licensed liquidation practitioners now.

The Role of Company Liquidators

Company liquidators are responsible for overseeing and conducting the entire process of liquidation. Their role is critical to ensuring the most cost-effective outcome for all parties involved. Liquidators are required to act in an independent and impartial manner whilst winding up the affairs of a company, as bias is regarded as a very serious matter by the courts.

Company liquidators are responsible for the distribution of assets of the company, as well as any surplus monies, to the company’s creditors. The role of the liquidator also entails thoroughly investigating the financial affairs of the company and reporting any wrongdoings, such as potential claims for preferential payments and trading while insolvent.


The findings of the company liquidator must then be reported to the Australian Securities and Investments Commission (ASIC) as well as all affected creditors. After a clearance has been received by ASIC, the liquidator can then proceed to finalise the company’s winding up process.

If you, as a director of an insolvent company, have decided to initiate a voluntary wind up your business, you have the option of selecting a liquidator of your own choosing. Australian Company Liquidations (ACL) is a team of highly skilled and licensed company liquidators. With ACL, your company can begin the process of liquidation within 24 hours of you contacting us, provided you give us all the necessary information.

To better understand the role of company liquidators or the liquidation process, call ACL today on 1800 731 155.

What is the Purpose of a Company Liquidation?

When your company experiences financial distress, a company liquidation may be a possible option for you to consider.

Liquidation refers to the winding up of a company’s affairs. There are two types of liquidation:

1. Creditors’ Voluntary Liquidation

2. Compulsory Court Appointed Liquidation

A Creditors’ Voluntary Liquidations is when the company’s directors and shareholders decide to wind up the company’s affairs. In comparison, a Compulsory Court Appointed Liquidation is when the court orders that the company be wound up, usually upon the petition of a creditor.

But what exactly is the purpose of a liquidation?

When a company is placed into liquidation, it is the role of the liquidator to perform the following primary functions:

1. To identify and sell any assets of the company for the benefit of creditors;

2. To prepare and file a confidential report with the Australian Securities and
Investments Commission;

3. To identify and recover any preferential payments;

4. To identify and recover any uncommercial transactions; and

5. To identify and recover any unreasonable director-related transactions.

Here at Australian Company Liquidations we can help explain the purpose of a company liquidation in easy to understand terms. Call our free 24 hour insolvency hotline for assistance on 1800 731 155.

The Difference Between a Voluntary and Compulsory Liquidation

A Company Liquidation is essentially the same if you decide to liquidate your company on a voluntary basis or the court appoints a liquidator.

However, the main difference between a liquidator appointed voluntarily and a court appointed liquidator is who gets to choose the liquidator.

A Creditors’ Voluntary Liquidation is when you voluntarily place the company into liquidation. In this scenario, you have the choice to appoint a liquidator of your own choosing.

This can be beneficial because then it means you are in control of who gets to oversee the liquidation. You can do research and confident in their abilities.

Being able to choose the liquidator can give you some confidence which you won’t get if you allow your creditors to take control of the liquidation process.

On the other hand, compulsory liquidation, or a Court initiated liquidation, is when the courts or the petitioning creditor nominates the liquidator and you don’t have any say in the matter at all.

Regardless of who appoints the liquidator, all liquidators must do their job professionally and report their findings to the creditors and act impartially.


Looking for an experienced and reliable liquidator that you can trust?

Australian Company Liquidations are all fully licensed and Investments Committee. We also run a toll-free advice line for those who are looking for free expert advice. If you would like a consultation with our experts then please call us on our 24/7 hotline on 1800 731 155.

Cheap and Licensed Liquidation with ACL

Want to have your company liquidated by a registered liquidator but want to get it for the cheapest cost possible?

Some companies talk about the cheap liquidation trap – but if your company is insolvent and needs to be liquidated the only thing you need to worry about
is that you engage the services of a registered liquidator. You should never deal with a middle man or an unlicensed broker who will not be able to deliver
what they promise!


Here at the Australian Company Liquidations you don’t need to worry because our practitioner is a fully registered liquidator with the Australian Securities and we have passed on those savings to you! As such we are proud to say that we can deliver the cheapest liquidation in Australia!

We can also quote you a fixed up-front payment to conduct the liquidation so you know from the outset how much it will cost you so there won’t be any surprises down the track.

Don’t overpay for a company liquidation and call the Australian Company Liquidations today! If you want to keep your details private you can contact us on an anonymous basis until you feel comfortable to proceed with the company liquidation.


Don’t liquidate your company until you have obtained a quote from us. You can call us any time 24 hours a day / 7 days a week for a confidential company liquidation quote.

Call now on our toll-free hotline at 1800 731 155. Our advice is completely impartial and will come at no cost to you.

Need Expert Advice? Call Us Now on 1800 731 155

ATO’S Latest Efforts to Eradicate Phoneix Businesses

The Australian Taxation Office (ATO) has issued a warning to business owners across the nation by detailing its latest operation in targeting and eradicating phoenix businesses.

A Phoenix is where a business has been deliberately transferred to a related party for inadequate consideration and the old company is placed into liquidation so that the business owners are able to avoid paying creditors, employees and tax. The Phoenix of a business creates an unfair market advantage as the process allows them to undercut their competition by not paying business overheads and taxes.



The Australian Economy accounts for approx. $3.2 billion a year of Fraudulent Business Activity

The significant increase in fraudulent phoenix activity and high costs to the Australian economy (approximately $3.2 billion a year) has led to the establishment of the Inter-Agency Phoenix Forum — a joint operation by the ATO and various other government agencies. Within this forum, collective intelligence is combined to design and carry out operations that will decrease illegal phoenix activity across Australia.

The ATO Deputy Commissioner Michael Cranston explained that the operation involved a string of surprise access visits to multiple business and residential sites in Sydney. The visits were made with the assistance of the NSW Police Gangs Squad Strike Force Raptor, National Anti-Gangs Squad and Middle Eastern Organised Crime Squad.

Cranston stated that the information gathered from the companies will be used to provide more intelligence about potential phoenix operators and facilitators in Australia, and the methods that they use to try to cheat the national tax and superannuation systems.

The consequences for engaging in fraudulent phoenix activity are very serious. To avoid the possible confiscation of personal assets and lengthy jail sentences that may result from conducting in phoenix activity, contact Australian Company Liquidations (ACL) today. The liquidators at ACL are registered and licensed with the Australian Securities and Investments Commission and will handle your liquidation case in adherence to their strict protocol and
standards, ensuring that your company’s actions remain lawful. Call us today on 1800 731 155

CALL US TODAY ON 1800 731 155