How to count the 21 days on a director penalty notice

The 21 days on a director penalty notice (DPN) start on the day the ATO posts the notice, or leaves it at your address registered with ASIC. They do not start when you receive or open it. Because a posted notice can take days to arrive, you may have less than 21 days in practice. The 21 days are calendar days, so weekends and public holidays count. Count 21 days from the date the notice was posted, and plan to act well before the last day.

How to count the 21 days

1. Find the date on the notice. It is usually printed near the top. The ATO generally issues the notice on the day it posts it, so this is the safest starting point.
2. Count 21 calendar days after that date. Weekends and public holidays count. The date of the notice is the starting point, and the 21st day after it is the last day, even if it falls on a weekend or public holiday.
3. Allow for the time the notice spent in the post. Those days have already been used, even though the notice had not reached you.
4. Work back from the last day. An administrator, a restructuring practitioner or a liquidator has to consent and be properly appointed within the 21 days, and that takes preparation. Payment also needs time to clear.

Our 21-day DPN calculator does the arithmetic for you.

A worked example

This example is for illustration only. Check the date on your own notice, and get advice before relying on any date.

Why the date you received it does not matter

The law treats the notice as given when the ATO posts it, or leaves it at the address that ASIC holds for you. Courts have confirmed that the ATO does not have to prove you received it, and that simply saying you did not receive it is generally not enough. This is why notices sent to an old address still count.

Keep your address on the ASIC register up to date

The ATO only needs to post the notice to the address on the ASIC register. It does not have to find you, call you or email you. If that address is out of date, the 21 days can run out before you ever see the notice. If you have moved, update your details with ASIC now.

What has to happen within the 21 days

For a non-lockdown DPN, one of these must be completed, not just started, within the 21 days:

• the amount is paid in full;
• a small business restructuring practitioner is appointed;
• a voluntary administrator is appointed; or
• the company begins to be wound up, for example through a creditors’ voluntary liquidation.

Agreeing a payment plan is not one of these. See does a payment plan cancel a DPN?

For a lockdown DPN, the 21 days still appear on the notice, but only payment in full remits the penalty. Once the 21 days pass, the ATO can move to recover it from you personally.

What happens on day 22

If none of the options was completed in time, the ATO can recover the penalty from you personally, for example by offsetting your tax refunds or credits, issuing a garnishee notice, or taking legal action. Appointing an administrator or liquidator after the 21 days may still help the company, but it no longer remits the penalty.

Common questions

When do the 21 days on a DPN start?

On the day the ATO posts the notice, or leaves it at your address registered with ASIC. They do not start when you receive or open it.

What if I never received the DPN?

The ATO only needs to post it to your address on the ASIC register. If it did, the law treats the notice as given, even if it went to an old address or you never saw it. Courts have held that simply saying you did not receive it is generally not enough, so keep your details on the ASIC register up to date.

Can the ATO extend the 21 days?

The ATO’s guidance sets out no process for extending the 21 days, so treat the deadline as fixed.

Do weekends and public holidays count in the 21 days?

Yes. The 21 days are calendar days, so weekends and public holidays are included. There is no extra time if the last day falls on a weekend or public holiday.

Is the DPN 21 days the same as the 21 days on a statutory demand?

No. They are separate deadlines under different laws. A company can face both at once, and each has to be dealt with on its own terms.

Does a part payment within the 21 days help?

It reduces the penalty by the amount paid, but it does not remit the balance. The rest stays your personal liability unless one of the four options is completed in time.

Sources: Taxation Administration Act 1953 (Cth) Schedule 1, sections 269-25 and 269-50; Deputy Commissioner of Taxation v Tannous [2016] NSWSC 1654; Deputy Commissioner of Taxation v Lawson [2017] VSC 789; Australian Taxation Office, Director penalty regime (last updated 16 April 2026). This page is general information, not advice about your circumstances. Last reviewed: 9 October 2026.