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Australia’s small businesses are once again approaching a dangerous economic tipping point, and the warning signs are appearing long before they show up in official insolvency statistics. In recent weeks, global oil prices have surged dramatically, briefly approaching...
There is no fixed cost for insolvency in Australia. Costs typically include insolvency practitioner fees, legal and asset sale costs, court and regulatory fees, and employee entitlement administration. They’re usually paid from company assets first, and delaying...
Insolvency help should be sought as soon as a business shows signs of financial stress or difficulty paying debts on time. Early advice helps directors understand their options and manage risk. Insolvency consultants, business advisers, and liquidators assist at...
Debt consolidation replaces existing debts with a new loan, while debt restructuring changes the terms of current debts to relieve pressure. Consolidation suits businesses with stable cash flow. Restructuring is usually better when cash flow is strained, creditors are...
Restructuring your business is a way to protect it from the risk of becoming insolvent. It can involve cutting costs, renegotiating debts, or choosing a formal process if pressure increases. Acting early helps directors manage cash flow, deal with the ATO and...
Directors are not automatically personally liable for company debts. Personal risk arises in specific situations such as insolvent trading, unpaid tax or super, or personal guarantees. Liability often depends on timing and decisions made under pressure. Acting early,...
Insolvency occurs when a business cannot pay its debts as they fall due. Unpaid BAS, PAYG or super can trigger fast ATO action. Warning signs include poor cash flow, overdue creditors, and failed payment plans. When other recovery actions fail, the ATO may trigger the...
When a business becomes insolvent, outcomes depend on whether the business can be supported by addressing the cash flow and debts. Businesses may restructure, enter administration, or wind up. Early decisions help protect cash flow, manage creditor pressure, and...
A business becomes insolvent through mounting cash flow pressure, missed payments, and escalating creditor or ATO action. It usually starts with late bills, worsens as arrears grow, and becomes critical once formal notices and deadlines apply. Acting early often...
A statutory demand is a formal legal notice issued by the ATO to retrieve unpaid debts. Once served, directors have a deadline of 21 days to act. Ignoring it can lead to a presumption of insolvency and court action, but early, informed decisions can preserve options...