A director penalty notice gives you 21 days. Funding may pay the company debt inside that time.
- Property-secured funding, with some lenders able to settle within 2 business days of a complete file
- Loans from $50K to $10M to pay the company debt named on the notice
- Company directors holding a director penalty notice (DPN), whether or not it is a 'lockdown' notice
- Covers the unpaid GST, super guarantee charge and PAYG withholding, the tax taken from wages, named on the notice
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) and no-doc options across our 90+ lender panel
A director penalty notice is addressed to you, not the company. It asks you to deal with a company tax debt, and the 21 days run from the day it is posted. That is a hard letter to open. If the company has a path forward, funding secured against property may be one way to pay the debt in full inside that window. Director penalty notice finance is a loan, usually secured over property owned by you or the company, used to pay the amount on the notice to the ATO. Joseph Farhat and his team can tell you quickly whether a lender on the panel can settle in the time you have left.
Who we can help access finance
- Directors who have just received a non-lockdown DPN and want to know, on day one, whether borrowing to pay in full is achievable before day 21.
- Directors holding a lockdown DPN, where the ATO has told them that paying the company debt in full is the only way the penalty is remitted.
- Directors who own a home or investment property with equity and are weighing up whether to offer it as security for the company debt.
- Companies that own their premises or other real property and want to borrow against it to pay the debt.
- Directors whose notice includes unpaid super guarantee charge alongside PAYG withholding or GST.
How Director Penalty Notice Finance Works
The ATO can make directors personally liable for a company's unpaid PAYG withholding, GST and super guarantee charge. A DPN is the notice that starts that process. The ATO can begin recovering the penalty from you 21 days after it issues the notice, and the 21 days start on the day the notice is posted. Under a non-lockdown DPN, the ATO remits the penalty if, within those 21 days, the company pays the debt in full, appoints an administrator, appoints a small business restructuring practitioner, or begins to be wound up. Under a lockdown DPN, paying the company debt in full is the only way the penalty is remitted.
Finance pays the ATO. It does not cancel anything on its own. You then owe the lender instead, on terms set out before you sign, and the property offered as security is at risk if those repayments are not met. Joseph Farhat and his team look at the amount on the notice, the property available, and how many days remain. They then match the file to lenders on our panel of 90+ bank, non-bank, and specialist lenders that can settle a property-secured loan on that timeline.
We are a finance broker, not an accountant, lawyer or registered insolvency practitioner. Administration, small business restructuring and liquidation are matters to take to a registered insolvency practitioner, and an accountant can tell you whether the company can pay its debts as they fall due. Speak to them first. If the company cannot pay its debts, borrowing more is not the answer, and we will say so. Where property you own personally is offered for a company debt, get independent legal advice before you sign.
What Lenders Assess for Director Penalty Notice Finance
Days remaining on the notice
the date the DPN was posted sets the deadline, so lenders and valuers are chosen for whether they can complete before it.
Property and equity
the loan-to-value ratio (LVR), the loan as a share of the property's value, counting any existing mortgage, sets how much can be advanced and at what price.
Whose property it is
a loan to the company secured over a director's home is assessed differently to one secured over company-owned property, and documents and legal steps differ.
The full company tax position
lenders want a current ATO statement so they can see the amount on the notice and any other balance still outstanding.
Whether the company is still viable
lenders want evidence that the business can trade and meet the new repayment, usually recent bank statements and the accountant's view.
The exit
how the loan will be repaid at the end of a short term, whether by refinance, a property sale, or trading income over a longer facility.
The Director Penalty Notice Finance Process: What to Expect
- Send Joseph Farhat and his team a copy of the notice, the date it was posted, the property you could offer as security, and your accountant's details. You will get an early, honest view on whether a lender can settle in the time remaining.
- Confirm the company's position with your accountant, and with a registered insolvency practitioner if the company may not be able to pay its debts. Where personal property is involved, arrange independent legal advice at the same time.
- We match the file to the lenders on the panel that can value, approve and document a property-secured loan inside your window, and order the valuation as early as the lender allows.
- The lender issues an approval setting out the rate, fees, term and security. We go through it with you, including the total cost, before anything is signed.
- At settlement, funds are paid to the ATO for the company debt. Keep the payment confirmation, and ask your accountant to check the ATO account shows the amount as paid.
Indicative Finance Options
| Lender Type | Indicative Rate | Max LVR | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | Not typically offered as a standalone payment of a DPN debt inside 21 days. May be possible within a broader property refinance where time allows. | ||||
| Non-Bank Lenders | From ~9.5% p.a. | Up to 75% | $50K to $3M | 6 months to 5 years | Within 2 business days |
| Private Finance | From ~1.2% per month | Up to 75% | $100K to $10M | 1 to 24 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for director penalty notice finance
We represent you, not the lender
Joseph Farhat and his team act in your interest from the moment you send the notice through to settlement.
Lenders chosen for the deadline
a lower rate that cannot settle before day 21 helps no one, so timing is weighed alongside cost from the first conversation.
Honest about the limits
if a loan is not the right step for the company, or cannot settle in time, you will hear that early so you can act on the other options with your adviser.
One conversation, not several applications
each credit enquiry is recorded on your credit file, and a director needs that file in good order for whatever comes next.
90+ lenders on one panel
bank, non-bank, and specialist lenders, assessed against your property, your timeline and the company position.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the 21 days are already running, tell us early and we will tell you what is realistically achievable.
Frequently asked questions
What is a director penalty notice?
A director penalty notice, or DPN, is a notice the ATO issues to a company director when the company has unpaid PAYG withholding, GST or super guarantee charge. It makes the director personally liable for a penalty equal to that debt. The ATO can start recovering the penalty from the director 21 days after it issues the notice, counted from the day it is posted. In the 2024-25 financial year, the ATO issued over 84,000 DPNs to individual directors. Director penalty notice finance is funding used to pay the company debt in full within that period.
Does paying in full end personal liability for that amount?
The ATO treats the director penalty as a parallel liability. A payment made by the company or by any director reduces the amount everyone owes, so paying the company debt in full clears the director penalty for that debt. A loan pays the ATO, and you then owe the lender under the loan terms. Ask your accountant to confirm the full amount to pay, whether any other company tax amounts are outstanding, and that the ATO account shows the debt as paid.
What if the notice is a lockdown DPN?
A lockdown DPN generally applies where PAYG withholding or GST was reported more than 3 months late or not reported, or where super guarantee charge was reported late or not at all. Under a lockdown DPN, the only way to have the penalty remitted is to pay the company debt in full. Appointing an administrator or liquidator does not remit it. Super guarantee rules changed on 1 July 2026 under Payday Super, so if your notice includes super guarantee charge, ask your accountant how the lockdown rules apply to your amounts.
Can I use my home as security for a company tax debt?
Some lenders will accept a director's home as security for a loan to the company. It is a serious step. If the company cannot meet the repayments, the lender can enforce against your home. Get independent legal advice before you sign any mortgage or guarantee for a company debt, and speak with your accountant about whether the company can carry the repayment. Joseph Farhat and his team will set out what each lender requires and the total cost, so you decide with full information.
How fast can funds settle inside 21 days?
It depends on the property, the lender and the paperwork. Some non-bank and specialist lenders can fund within 2 business days of a complete file, but a property-secured loan still needs a valuation, title checks and signed security documents. Send the notice and property details on the day you receive it. Joseph Farhat and his team will tell you early whether settlement before your deadline is realistic, and if it is not, you will know in time to act on the other options with your adviser.
What should happen if the company cannot pay its debts?
Speak to your accountant or a registered insolvency practitioner before borrowing anything. A loan is only a fit where the company can keep trading and meet a new repayment. Where it cannot, administration, small business restructuring or liquidation may be the steps to discuss, and those are matters for an insolvency practitioner, not a finance broker. We will not place a loan a company cannot carry.
Can I borrow to pay a DPN with low-doc or no-doc?
Often, yes. Where the loan is secured over property with enough equity, several lenders on the panel assess the security and the exit more heavily than full financials. Some no-doc options exist for commercial loans. Expect a higher rate and lower LVR for less paperwork. Most lenders will still want a current ATO statement so they know the exact amount being paid.
Do you work with borrowers with bad credit?
Yes, we do. A default or a past arrears listing does not rule you out, and it is not something we will make you feel awkward about. For property-secured funding, several lenders on our panel weigh the equity and the exit more heavily than the credit file, and will price for the risk rather than decline it. Tell us early, so we approach the right lender first instead of adding enquiries to your file. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Why work with Settled With Joe to arrange your director penalty notice finance?
Because you get one conversation instead of a round of applications, at a point where every day counts. Most of the people we help with a DPN are company directors and business owners with a dated notice in hand: a non-lockdown notice with days ticking, a lockdown notice that already sits with them personally, or two directors with notices for the same debt. Those situations are not unusual to us and there is no judgement in the conversation. What matters is the equity in the property, a credible way to repay, and a timeline a lender can meet. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented file can go to a bank at a sharper rate, and there are still options when the money is needed this week. We are based in Sydney and work with borrowers Australia-wide. Joseph Farhat and his team will tell you honestly and early whether we can help inside your window.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with director penalty notice finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges director penalty notice finance Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Valuer availability varies by location, which matters on a 21-day deadline. Joseph Farhat and his team will identify which lenders on the panel can settle against your property in the time you have.
