Business Restructuring

Quick Summary Not every creditor claim is necessarily correct. If you believe a debt or claim is wrong, raise it early and provide evidence to support your position. This can help your restructuring practitioner assess the claim accurately and keep your SBR plan on...

Quick Summary SBR only applies to a company registered under the Corporations Act, including a corporate trustee of a trust. Sole traders, partnerships, and trusts without a corporate trustee can't access it. Instead, individuals generally have options under the...

Quick Summary A director generally can't use SBR for a second company within seven years if they (or a recent director) were involved in an earlier SBR or simplified liquidation. Section 453C(1)(b) and regulation 5.3B.03(2) set this out. A limited exception applies to...

Quick Summary SBR doesn't automatically cancel business licences or insurance under Corporations Law. But insurance policies often contain clauses that let an insurer void cover once a practitioner is appointed, and some state licensing laws weren't written with SBR...

Quick Summary An SBR plan can be changed, extended, or terminated in certain circumstances. However, specific legal requirements apply to each. The outcome can also affect your business and creditors, so understanding the process is important. Free Download: Post-SBR...

Quick summary A director loan account can affect Small Business Restructuring by changing how a company’s assets, liabilities, and financial position are assessed. While having a director loan does not automatically prevent an SBR, poorly documented or unrecoverable...

Quick Summary Payday Super could affect your Small Business Restructuring eligibility by making it easier to identify whether your business is meeting its ongoing super obligations. While unpaid super doesn't automatically prevent an SBR, staying compliant can...

Quick summary A related-party creditor is someone connected to the company — like a director, family member, or associated entity — who's also owed money. Under regulation 5.3B.01, they're "excluded" from voting on the restructuring plan if that status existed when...

Quick summary Before a SBR proposal can be issued, company's tax and super lodgements must be up to date, and all currently due employee entitlements paid. If not fully compliant, the company can rely on a "substantial compliance" test instead. Issuing a plan before...

Quick summary The ATO looks for a realistic and well-supported Small Business Restructuring plan that gives creditors a fair return. It considers factors such as the business’s financial position, tax compliance, proposed repayments, and whether the plan provides a...

Quick summary Once a restructuring plan is accepted, directors stay in control while the practitioner's role narrows to managing payments. The company is released from its debts once the plan is fully carried out — but a missed payment, left unfixed for 30 business...

Quick Summary ‘SBR Rollover’ refers to the Small Business Restructure Rollover — a tax concession that allows eligible businesses to change their legal structure without triggering CGT. It is unrelated to Small Business Restructuring (SBR), the insolvency process...

Quick Summary A Small Business Restructuring plan can fail if the company wasn't eligible, creditors voted against it, the proposed return was lower than liquidation, or the practitioner ended the process before a vote. Disputed debts, incomplete information, poor tax...

Secured creditors are treated differently from unsecured creditors during SBR. They generally retain their security interest, and enforcement is largely restricted during the restructuring period — except for a creditor holding security over the whole, or...

SBR includes most unsecured debts that existed before the process began, such as ATO debt, supplier invoices, unsecured loans, lease arrears and related-party loans. However, employee entitlements, SGC liabilities, post-appointment debts and fully secured debts are...

A Small Business Restructuring (SBR) Practitioner is an independent registered liquidator who oversees the SBR process, assesses eligibility, helps prepare the proposal, and facilitates creditor voting. Unlike a voluntary administrator or liquidator, they do not take...

Small Business Restructuring (SBR) is a formal insolvency process for eligible companies in financial distress, helping them restructure debts while continuing to trade. Small Business Restructure Rollover (SBRR) is a tax rollover concession that helps eligible...

Small Business Restructuring (SBR) can help eligible construction companies manage existing debts while continuing to trade. It allows directors to stay in control of the business and work towards financial recovery without immediately entering liquidation. Free...

Employee entitlements that are due and payable must be paid before a company can propose a SBR plan—they cannot simply be included alongside other debts. "Due and payable" refers to entitlements the company is already legally required to pay, not future obligations or...

In most cases, yes, SBR can help after a statutory demand. A statutory demand does not, on its own, disqualify a company from Small Business Restructuring. However, once a winding-up order is made, SBR is no longer available. Directors are advised to seek advice...

Small Business Restructuring is a formal insolvency process, so some information becomes part of the public record. This generally includes the fact that the company has entered restructuring, the date it began, and the appointed practitioner's name and details — but...

The Small Business Restructuring moratorium can temporarily stop many types of creditor action, giving eligible businesses breathing room while a restructuring plan is developed. Coverage varies by creditor type and timing — secured creditors, the ATO, and personal...