The end of the financial year is more than a tax event. For company directors, 30 June 2026 is a hard deadline that triggers legal obligations across superannuation, taxation, corporate governance, and insolvency. Miss these obligations, and you may face personal liability that survives the company failing.
This checklist covers every material director obligation you must address before 30 June 2026. It is practical, specific, and designed for Queensland business owners and directors of small-to-medium enterprises.
1. Superannuation Guarantee — Q4 FY2026 Contributions
The superannuation guarantee (SGC) rate for FY2026 is 11.5% of ordinary time earnings. For Q4 FY2026 (April–June 2026), contributions must be paid to employees’ nominated super funds by 28 July 2026. However, directors should be organising this now — leaving it to late July is risky.
Director liability trap: If the company does not pay SGC on time, the Australian Taxation Office can issue a Director Penalty Notice (DPN) — making you personally liable for the unpaid super. Once the DPN is issued, you have 21 days to take action before the penalty becomes locked-down and irrecoverable.
Action items for Q4 SGC:
- Confirm employee headcount and ordinary time earnings for April–June 2026
- Calculate 11.5% SGC for each employee
- Schedule contribution payments to reach employee funds by 28 July 2026
- If the company cannot fund full SGC — seek legal advice immediately (before 30 June 2026, not after)
2. Payday Super Commences 1 July 2026 — Prepare Now
The single biggest change to employer obligations in a decade takes effect on 1 July 2026: Payday Super. From that date, employers must pay superannuation on or before the day wages are paid — not quarterly as has been the case since the SGC system began.
What this means in practice:
- Every pay run (weekly, fortnightly, monthly) must include a simultaneous super payment
- Payroll software must be configured to process super contributions with wages
- Employer cash flow management must account for super as a current, not quarterly, cost
- The ATO will have real-time visibility of super payment compliance through STP Phase 2 reporting
Director liability: Payday Super will be enforced through the DPN regime. Non-payment triggers a DPN and personal liability for the director. The ATO has already signalled it will pursue payday super defaults aggressively.
EOFY action: Do not wait until 1 July. Audit your payroll system now. If you run a manual or legacy payroll process, you need to upgrade before July 1 — not after. If your company cannot fund simultaneous super payments, you need a restructuring strategy, not a July surprise.
3. Director Penalty Notices — The Hidden EOFY Trap
The ATO issued over 84,000 Director Penalty Notices in FY2025-26 — a 136% surge compared to prior years. The DPN regime makes directors personally liable for unpaid PAYG withholding and SGC. There are two types of DPN, and the distinction is critical:
- Non-lockdown DPN (PAYG or SGC reported within 3 months of due date): The director can remit the penalty by placing the company into voluntary administration or liquidation within 21 days.
- Lockdown DPN (PAYG or SGC not reported within 3 months): The penalty is locked-down. The director is personally liable regardless of what happens to the company. There is no escape.
EOFY action: Review your BAS lodgment history. If any quarterly BAS is overdue or any SGC statement has not been lodged, lodge it now — before the 3-month window closes. A lodged but unpaid liability creates a non-lockdown DPN. An unlodged liability creates a lockdown DPN. The difference is whether the director retains a viable exit.
If you have received a DPN or suspect one is coming, contact an insolvency lawyer in Brisbane immediately. The 21-day window moves fast.
4. Insolvent Trading Check — June 30 Is a Trigger Date
EOFY is one of the highest-risk periods for insolvent trading liability. Here is why: companies that have been struggling through the year often encounter a crisis at 30 June — tax debts crystalise, creditors become aggressive, and cash flow pressures peak. A director who continues trading through this period knowing the company is insolvent faces personal liability under s 588G of the Corporations Act 2001 (Cth).
Under s 588G, a director is personally liable for debts incurred while the company is insolvent if the director knew — or ought to have known — that the company was insolvent at the time the debt was incurred.
EOFY insolvent trading checklist:
- Can the company pay all debts as and when they fall due?
- Is the company current on all ATO obligations (BAS, PAYG, SGC)?
- Are trade creditors being paid within their terms?
- Does the company have available credit or liquidity to fund ongoing operations?
- Is there a creditor threatening legal action or a statutory demand?
If you cannot answer yes to all of the above, the company may be technically insolvent. The safe harbour under s 588GA protects directors who take a genuine restructuring course of action under advice. That protection does not arise automatically — it must be actively engaged.
Seek legal advice before 30 June if the company is under financial stress. Options include restructuring, voluntary administration, Small Business Restructuring (Part 5.3B), or an orderly wind-down. All of these are more controlled — and less personally costly — than a creditor-forced liquidation.
5. AML/CTF Tranche 2 — Does It Apply to Your Business?
From 1 July 2026, Australia’s anti-money laundering and counter-terrorism financing regime (AML/CTF) expands to cover previously unregulated designated services, including accountants, lawyers, real estate agents, and trust and company service providers.
If your business provides any of these services — or your company’s operations intersect with them — you may become a reporting entity under the AML/CTF Act. This triggers obligations to:
- Enrol with AUSTRAC by 31 March 2027
- Establish and maintain an AML/CTF program by 1 July 2026
- Conduct customer due diligence (CDD) and ongoing monitoring
- Report suspicious matters, threshold transactions, and international transfers
Directors of affected businesses who fail to comply face civil penalties of up to 100,000 penalty units ($33,000,000). Use your EOFY review to determine whether Tranche 2 applies to your business and, if so, begin your compliance program now — not after 1 July.
6. Year-End Corporate Governance Obligations
Beyond tax and super, directors have standing corporate governance obligations that must be addressed at or around EOFY:
- Board minutes: Ensure all board resolutions from FY2026 are documented in properly prepared minutes. Undocumented decisions create exposure in director disputes and regulatory investigations.
- Financial statements: Proprietary companies must prepare annual financial statements within 4 months of the end of the financial year (by 31 October 2026 for 30 June year-ends). Directors must resolve to adopt the statements.
- ASIC annual review: If your company’s annual review fee was due in the past year and unpaid, rectify this now. Outstanding fees lead to deregistration notices.
- Director ID (DIN): All directors appointed after November 2021 must have a Director Identification Number. If any director is missing a DIN, apply immediately — penalties apply for non-compliance.
- Related party transactions: Any transactions between the company and its directors or associated parties must be properly documented and, where required, approved under Chapter 2E of the Corporations Act.
- Dividends: If the company is declaring a dividend, it must be commercially solvent after the payment. Paying a dividend when the company is insolvent exposes directors to personal liability.
7. What Happens If You Miss These Obligations?
The consequences of EOFY compliance failures for directors are not administrative — they are personal. Here is what is at stake:
- DPN liability: Personal liability for unpaid PAYG withholding and SGC — no cap, full debt amount
- Insolvent trading: Personal liability for company debts incurred while insolvent — plus compensation orders to creditors
- ASIC enforcement: Director disqualification (up to 20 years for serious contraventions) and civil penalties up to $1,650,000 per breach
- AML/CTF: Civil penalties up to $33,000,000 for non-compliant reporting entities
- SGC charge: Mandatory SGC charge (including interest and administration fee) if contributions are late — and potential DPN
The pattern is consistent: directors who seek advice before the financial year end have options. Directors who wait until July or August — when debts have accumulated, DPNs have been issued, and creditors are circling — have far fewer.
Frequently Asked Questions
Q: Can a director be personally liable for the company’s tax debts?
Yes. Under the Director Penalty Notice regime, directors can be held personally liable for unpaid PAYG withholding tax and superannuation guarantee charge (SGC). If the company’s BAS or SGC statements were not lodged within 3 months of the due date, the DPN is locked-down and personal liability cannot be avoided even by placing the company into administration or liquidation.
Q: What is the safe harbour for insolvent trading and does it apply automatically?
The safe harbour under s 588GA of the Corporations Act protects directors from insolvent trading liability if they take a genuine course of action reasonably likely to lead to a better outcome for the company than immediate administration or liquidation. The protection is not automatic — the director must be actively pursuing a restructuring course under qualified advice, and must have books and records in order. If you think you may need safe harbour, engage an insolvency lawyer now — not after a liquidator is appointed.
Q: Does Boss Lawyers help with EOFY director obligations?
Yes. Boss Lawyers advises directors on insolvent trading risk, DPN responses, voluntary administration and restructuring options, and all aspects of director liability under the Corporations Act. Mark Harley has over 17 years of experience in high-stakes commercial litigation and insolvency matters. Call 1300 267 711 for a confidential discussion.
Need advice before 30 June 2026? If your company is facing super arrears, ATO debt, or cash flow stress, the time to act is now — not after EOFY. Contact our insolvency lawyers in Brisbane for urgent, confidential advice. Call 1300 267 711 or email enquiries@bosslawyers.com.au.
This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances. — Mark Harley, Principal Solicitor, Boss Lawyers Pty Ltd.
