​Business Structure: Registered company (Pty Ltd), including eligible corporate trustees.Company Debt: Total relevant liabilities of $1 million or less, excluding employee entitlements.Financial Position: Insolvent or likely to become insolvent.Employee Entitlements: Due and payable wages, superannuation and other entitlements paid before proposing a plan.Tax Lodgements: Tax returns and BAS lodged, or substantially compliant, before proposing a plan.Previous Restructuring: Must meet the seven-year restrictions on previous SBR or simplified liquidation appointments (exceptions apply).​Not Eligible: Sole traders and partnerships without a corporate entity.

Small Business Restructuring gives eligible companies an opportunity to address financial difficulties while directors remain in control of day-to-day operations.An approved and successfully completed restructuring plan may allow your company to reduce eligible debts while continuing to trade under its existing name, brand and business structure.

There is no fixed percentage of debt reduction, and outcomes depend on your company's financial circumstances and creditor approval (If there are creditors) Majority of the time it's simply ATO debt holding businesses back.Under a restructuring plan, eligible creditors are offered a proposed repayment based on the company's financial position and capacity to pay.If the plan is accepted and successfully completed, the company is generally released from the remaining admissible debts covered by the plan.We can help assess your company's position and explore what may be achievable before a registered restructuring practitioner is appointed.

The ATO considers restructuring proposals based on the circumstances of each company. Approval is not guaranteed.Before a restructuring plan can be proposed, the company must generally have paid employee entitlements that are due and payable and met, or substantially complied with, its required tax lodgement obligations.Outstanding tax debts do not necessarily need to be paid in full before a plan is proposed.We can help you understand these requirements and prepare your business for consideration of a restructuring plan.

The formal restructuring proposal period generally lasts 20 business days, during which the directors work with a registered restructuring practitioner to prepare a plan.Creditors then generally have 15 business days to consider and vote on the proposal. Extensions may apply in certain circumstances.If the plan is accepted, repayments are made according to its agreed terms. The repayment period varies, but payments under the plan cannot extend beyond three years from acceptance.

Small Business Restructuring is undertaken by your company, not you personally.Entering SBR does not automatically mean you have entered personal insolvency or that your personal credit rating will be negatively affected.However, personal guarantees, Director Penalty Notices (DPNs) and other personal liabilities may still apply. The restructuring is also recorded on ASIC's public company register and may affect the company's credit arrangements.We can help you understand these considerations before you decide how to proceed.

SBR is publicly recorded and may affect your company's credit rating. However, in our experience, most businesses can still obtain finance following a successful restructure without significant difficulty, particularly when their financial position and cash flow have improved.What happens to your ASIC status?When SBR begins: Your company changes from Registered to External Administration.During restructuring: This status generally remains for approximately 7 weeks, although timeframes can vary.When creditors accept the plan: Your company generally returns to Registered status once ASIC processes the required notice.After restructuring: The appointment remains on public record, but reducing debt and improving cash flow may strengthen your company's financial position over time.Importantly, your company does not need to finish its restructuring plan repayments before returning to Registered status.

Yes. One of the main advantages of Small Business Restructuring is that directors generally retain control of their company's day-to-day operations.You can continue trading, managing staff and serving customers while working with a registered restructuring practitioner to develop a plan.Certain transactions outside the ordinary course of business require the practitioner's consent.Unlike voluntary administration, the practitioner does not take over the company's day-to-day management.

Division 7A loans can place additional financial pressure on business owners through interest and minimum annual repayment obligations. For the 2026–27 income year, the Division 7A benchmark interest rate is 8.77% for companies with a 30 June year-end.​These arrangements require careful consideration. Small Business Restructuring does not automatically reduce, forgive or eliminate Division 7A loans, and changes to these loans can have significant tax consequences.We can help identify the issues requiring review and coordinate with appropriate accounting and tax professionals to explore available options.

Potentially.For an eligible company with a viable underlying business, Small Business Restructuring may provide an alternative to liquidation by allowing the company to negotiate a formal repayment arrangement with creditors while continuing to trade.Not every business will qualify, and creditor approval is required. The company's ability to meet its ongoing obligations is also an important consideration.

A successful restructure requires more than reaching an agreement with the ATO. It involves ensuring your business is financially viable, improving cash flow and addressing underlying issues so your company is in a stronger position to move forward.