Small Business Restructure: What Australian Directors Need to Know Before It's Too Late.
Your company has debt it can’t pay. SBR lets you restructure that debt, keep running your business, and stay in control — without handing everything to an administrator.
- Keep control of your business throughout the entire process
- Reduce ATO and creditor debt to cents in the dollar
- Must act before debts exceed $1 million or tax lodgements lapse
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Act Now — SBR Eligibility Closes Once Debts Pass $1 Million
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The Complete Director’s Guide
Published by RestructurePartners.com.au — Updated 2025
Small Business Restructuring is a formal insolvency process introduced in Australia on 1 January 2021 under Part 5.3B of the Corporations Act 2001 (Cth). It allows eligible small companies to restructure their debts while the directors retain operational control, guided by a licensed Small Business Restructuring Practitioner (SBRP).
Companies with total liabilities of $1 million or less, whose directors meet eligibility criteria regarding prior insolvency history, compliance with employee entitlements, and tax lodgement obligations. The company must not have used SBR or simplified liquidation in the preceding seven years.
Total liabilities must not exceed $1,000,000 (inclusive of all creditors, including ATO and related parties) at the time of the SBRP’s appointment.
The core process runs over approximately 35 business days: the SBRP has 20 business days to formulate a restructuring plan; creditors then have 15 business days to vote on the proposal.
The plan is approved if a majority in value of eligible creditors vote in favour. Related-party creditors and creditors who are associates of the company are excluded from voting.
SBR suits a genuinely viable small business that has accumulated debts — commonly with the ATO, suppliers, and lenders — but can demonstrate that creditors will receive a better return under the restructuring plan than in a liquidation. It is most effective when directors have acted early, maintained compliance with employee entitlements and tax lodgements, and the business has an identifiable path back to solvency.
Why This Guide Is Different
Most online articles about Small Business Restructuring in Australia fall short for the director who actually needs help. The information that exists tends to be either overly technical — written for accountants and lawyers — or superficially promotional, offering little practical guidance on the questions directors actually ask: Does my ATO debt qualify? What will this cost me? What happens if the plan fails? Is this actually better than liquidation for my situation?
This guide is written for Australian small business directors under financial pressure. It addresses eligibility rules precisely, explains the SBR process in plain language, sets realistic expectations about costs, ATO treatment, and director exposure, and provides structured comparisons with voluntary administration and liquidation. It does not over-promise outcomes.
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What Is Small Business Restructuring?
Small Business Restructuring is a formal debt-restructuring mechanism available to eligible incorporated companies in Australia. It was introduced by the Australian Government on 1 January 2021 as part of a broader package of insolvency reforms designed to give viable small businesses a simpler, faster, and less expensive alternative to voluntary administration.
The legal foundation is Part 5.3B of the Corporations Act 2001 (Cth). The regime was modelled partly on the United States’ Chapter 11 “debtor-in-possession” framework but tailored to the scale and complexity of Australian small business insolvency.
Prior to SBR, directors of small insolvent companies had limited options: voluntary administration (a creditor-controlled process with significant practitioner costs) or liquidation (a winding-up process). Voluntary administration was often disproportionately expensive for small businesses with modest assets and debts, and liquidation offered no prospect of rescuing the business. SBR was designed to fill this gap — enabling a quicker, cheaper restructure that preserves jobs and business goodwill wherever a genuine prospect of recovery exists.
A Small Business Restructuring Practitioner is a registered liquidator specifically authorised to conduct SBR appointments. Unlike a voluntary administrator, the SBRP does not take control of the company. Directors remain in control of day-to-day operations throughout the process. The SBRP’s role is to assist the company in developing a restructuring plan, certify eligibility requirements, communicate with creditors, and oversee plan implementation if approved. This “debtor-in-possession” model is a fundamental difference from voluntary administration.
Eligibility Criteria
Before appointing an SBRP, a company must satisfy all of the following eligibility requirements. Failing any one criterion will disqualify the company from the SBR regime.
✔ The company’s total liabilities — including all creditors such as ATO, trade creditors, bank lenders, and related-party loans — must not exceed $1,000,000 at the time of appointment.
✔ This is assessed on a whole-of-company basis. Contingent liabilities and disputed debts may be included depending on circumstances.
✔ All employee entitlements that are due and payable — including wages, annual leave, and long service leave — must be paid in full before the SBRP can be appointed.
✔ Entitlements not yet due (e.g. accumulated long service leave not yet triggered) are not required to be discharged.
✔ All tax lodgement obligations must be up to date with the ATO. If you have already received a Director Penalty Notice from the ATO, you may have only 21 days to act — see our DPN guide. This includes BAS, income tax returns, PAYG withholding statements, and superannuation.
✔ It is not necessary to have paid all ATO debts — only to have lodged all required returns on time.
✔ The company must not have been subject to an SBR restructuring plan or simplified liquidation within the seven years preceding the proposed appointment.
✔ A director must not have been a director of another company subject to SBR or simplified liquidation during that same seven-year period.
✔ Directors must not have been subject to certain disqualification orders or have a recent history of prior restructuring abuse.
✔ The seven-year restriction applies not just to the company but to each of its directors.
✔ SBR is only available to companies that are insolvent or likely to become insolvent. A solvent company cannot enter SBR.
Practical note: Meeting eligibility is a precondition, not a guarantee of success. Even if a company is technically eligible, a restructuring plan that does not offer creditors a better return than liquidation is unlikely to be approved.
Step-by-Step Timeline of the SBR Process
Before formally appointing an SBRP, directors should ensure all employee entitlements are paid and current, verify that all tax lodgements are up to date with the ATO, prepare a detailed list of creditors and estimated debts, and confirm total liabilities are within the $1,000,000 cap. Directors should also engage an SBRP early — ideally before the company becomes critically insolvent — to allow adequate preparation time.
Once an SBRP is formally appointed, an automatic moratorium takes effect. A moratorium is a temporary suspension of creditor enforcement actions against the company. During the moratorium, unsecured creditors cannot commence or continue legal proceedings or enforcement actions. Secured creditors retain security rights but face restrictions on enforcement. Directors continue to manage the business.
Definition — Moratorium: A statutory suspension of creditor enforcement rights. In SBR, the moratorium is automatic on appointment of the SBRP and remains in place during the 20-business-day plan development period.
The SBRP has 20 business days from appointment to develop and issue the restructuring plan to creditors. During this period the SBRP works with directors to assess the company’s financial position, determine what return creditors might receive in a liquidation (the “comparator”), and formulate a plan offering an equal or better return. The SBRP must certify that the plan has been properly formulated and that the company meets all eligibility requirements.
Once the plan is issued, creditors have 15 business days to consider and vote. Creditors who do not respond are treated as rejecting the plan. Voting is conducted by written communication rather than at a physical creditors’ meeting.
The plan is approved if creditors representing a majority in value of the eligible voting creditors vote in favour. Related-party creditors — defined as associates of the company or directors — are excluded from voting.
Definition — Affected Creditors: In SBR, affected creditors are those whose claims are subject to the restructuring plan. Related parties and associates are excluded from the voting pool but remain bound by the plan if it is approved.
If the plan is approved, the SBRP oversees its implementation. This typically involves the company making regular payments to creditors as specified in the plan, over a period ranging from months to up to three years in practice. Directors continue to run the business, and the company must meet plan obligations to avoid termination.
Costs of Small Business Restructuring
In Australia, there is no statutory entry fee to enter SBR. However, the SBRP’s professional fees are a real and material cost that directors must factor into their planning.
SBRP fees are typically structured as a combination of a fixed component — covering eligibility assessment, plan development, and creditor communication — and a percentage-based component calculated on distributions made to creditors. The precise fee structure varies between practitioners and depends on the complexity of the creditor profile and work required.
SBR is generally significantly less expensive and less complex than voluntary administration for a small business. In a VA, an administrator takes full control, displaces directors, and incurs costs for every aspect of administering the business during the moratorium. Those costs are charged to the company’s estate and, for small businesses, can consume a substantial portion of available assets.
SBR involves more upfront practitioner work than a simplified liquidation, but the outcome is fundamentally different — SBR seeks to preserve the company as a going concern, whereas liquidation ends it.
Cost guidance: Specific cost ranges depend on engagement complexity. Always request a clear fee estimate from your SBRP in writing before appointment. Ask specifically how fees are charged in the event the plan is not approved.
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SBR vs Voluntary Administration vs Liquidation
| Factor | SBR | Voluntary Administration | Liquidation |
|---|---|---|---|
| Eligibility | Total liabilities ≤ $1m; employee entitlements paid; tax lodgements current; no prior SBR/simplified liquidation in 7 years | Any insolvent company; no debt ceiling; no lodgement preconditions | Any insolvent company; no threshold restrictions |
| Who controls the company? | Directors retain control (debtor-in-possession). SBRP assists but does not take over. | Administrator takes full control. Directors are displaced during administration. | Liquidator takes full control. Directors are fully displaced. |
| Timeframe | ~35 business days for core process (20 days plan + 15 days voting). Implementation may extend months to years. | Typically 20–25 business days to first creditors’ meeting; overall 3–6 months minimum. | Simple liquidations: 6–12 months. Complex ones may take years. |
| Creditor voting | Majority in value of eligible (non-related party) creditors. Written vote only — no meeting required. | DOCA requires approval at second creditors’ meeting; majority in number and value of creditors present. | No vote on plan. Creditors vote on liquidator appointment, not distribution methodology. |
| Outcome for business | Company continues trading if plan approved. Directors retain equity. | Company may continue via DOCA, or enter liquidation if no DOCA approved. | Company is wound up. Business ceases and assets are distributed. |
| Outcome for creditors | Creditors receive plan distributions — typically cents in the dollar over time. Bound by plan if approved. | Variable. May receive DOCA returns or liquidation distributions depending on assets. | Priority creditors paid first. Unsecured creditors receive residual dividend — often nil in small insolvencies. |
| Relative cost | Lower than VA for comparable company size. SBRP fees: fixed + % of distributions. | Higher. Administrator fees accrue from day one; charged to estate regardless of outcome. | Variable. Simplified liquidation is low cost; standard liquidation can be significant. |
| Director’s personal exposure | Not eliminated. Personal guarantees, lockdown DPNs, and insolvent trading exposure remain. | Not eliminated. VA does not discharge personal guarantees or DPN liability. | Not eliminated. Liquidator may pursue directors for insolvent trading or other breaches. |
Choose SBR if the business is genuinely viable, has debts within the $1m cap, the directors are compliant with tax and employee entitlement obligations, and there is a credible basis for offering creditors a better return than in liquidation. SBR is particularly well-suited to businesses where the ATO is the dominant creditor and where the business has identifiable, recurring revenue that can support a multi-year payment plan.
Consider voluntary administration if debts exceed $1m, there are significant secured creditors, or if disputes about director conduct need to be resolved in a more structured process. Accept that liquidation may be appropriate if the business is not viable — if revenue has structurally collapsed or debts are too large relative to any realistic earnings.
The principal risk of SBR is that the plan is rejected by creditors and the company proceeds to liquidation anyway — having incurred SBRP costs in the interim. This risk is heightened where the ATO holds a majority of the eligible voting debt and is unwilling to accept the proposed return. A second risk is plan termination during implementation: if the company cannot meet its obligations, the plan terminates and the company typically enters liquidation.
ATO Debt and Director Exposure
ATO debt — including unpaid GST, PAYG withholding, income tax, and superannuation guarantee charges — is treated as an ordinary unsecured creditor in SBR unless the ATO holds security over company assets. ATO debt is included in the $1,000,000 liability cap and is subject to the restructuring plan. If the plan is approved, the ATO is bound by it and must accept the agreed return, even if that return is less than the full amount owed.
In practice, the ATO’s response to SBR proposals depends on factors including the size of the debt relative to other creditors, the company’s compliance history, whether prior payment arrangements have been honoured, and whether the proposed return genuinely exceeds the liquidation comparator. Directors should not assume that the ATO will automatically accept any plan.
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A Director Penalty Notice (DPN) is a notice issued by the ATO that makes a company director personally liable for certain unremitted company tax obligations — specifically PAYG withholding and superannuation guarantee charges. There are two types: a “lockdown” DPN (where liability is irrevocable) and a “non-lockdown” DPN (where the director can remit personal liability by placing the company into administration, liquidation, or SBR within 21 days of the DPN).
Definition — Director Penalty Notice: A notice issued by the ATO to a director making them personally liable for certain unremitted PAYG withholding and superannuation guarantee charge obligations. The type of DPN determines whether the director’s liability can be reduced by insolvency action.
Appointing an SBRP triggers the moratorium, which generally suspends enforcement by the ATO against the company during the plan development period. However, a DPN that has already “locked down” is not discharged or suspended by SBR. The director’s personal liability under a lockdown DPN persists independently of any company-level outcome.
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An SBR restructuring plan applies to the company’s debts, not to the personal obligations of directors. If a director has provided a personal guarantee to a bank, landlord, or secured lender, that guarantee is not affected by the company’s restructuring plan. SBR does not discharge personal guarantees, and directors should not proceed under any assumption that it will.
Important: SBR does not eliminate personal liability arising from Director Penalty Notices (where locked down), personal guarantees, or potential insolvent trading claims. Directors must obtain independent advice about their personal exposure separately from the company’s restructuring process.
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What Happens If the Plan Fails?
If the plan does not receive approval from a majority in value of eligible creditors, it is rejected. The moratorium ends, creditors can resume enforcement actions, and the company may then enter voluntary administration, simplified liquidation, or standard liquidation. The costs incurred in developing the plan are not recoverable.
If the company fails to comply with its obligations under an approved plan — for example by missing required payments, ceasing to trade as contemplated, or becoming further insolvent — the SBRP, an affected creditor, or a court may apply to terminate the plan. Once terminated, the company generally enters liquidation. Creditors’ claims revert to their original amounts, less any amounts already received under the plan.
Directors whose restructuring plans fail should understand that the period of trading during SBR implementation is not insulated from scrutiny. A liquidator appointed after plan termination may investigate whether the company traded while insolvent during the implementation period. Careful documentation of the company’s financial position throughout the SBR period is therefore important.
When SBR Is NOT Appropriate
SBR is a powerful tool for the right business in the right circumstances, but it is not universally applicable.
SBR is unlikely to be appropriate if the company’s total liabilities exceed $1,000,000 — this is a hard legislative threshold. It is also not appropriate if the core business is no longer viable: SBR is designed to restructure debt, not to prop up a business whose revenue has structurally collapsed. It is not appropriate where directors have failed to maintain compliance with employee entitlements or tax lodgements, or where the company has already used SBR or simplified liquidation in the prior seven years.
SBR should not be used to delay inevitable insolvency. Using SBR to buy time while continuing to accumulate creditor exposure is not only unlikely to succeed but may expose directors to personal liability for insolvent trading. Where the ATO holds the majority of eligible voting debt and has clearly signalled it will not accept less than full payment, the prospects of plan approval are significantly diminished.
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Realistic Case Examples
The following case examples are illustrative and based on realistic scenarios drawn from the types of businesses and debt profiles commonly seen in Australian small business insolvency. They are not accounts of actual clients and do not guarantee that similar outcomes would be achieved in any specific case.
Business type: Owner-operated café in suburban Melbourne, trading for 7 years.
Debt profile: Total liabilities approximately $480,000. ATO debt: $290,000. Trade creditors: $95,000. Equipment finance (secured): $95,000.
Why SBR: Strong foot traffic and regular revenue but had fallen behind on ATO remittances during COVID-related closures. Employee entitlements were current; all BAS were lodged on time.
Hypothetical outcome: Plan offered ATO and trade creditors 45 cents in the dollar over 24 months. Secured equipment finance continued under existing terms. ATO and trade creditors approved the plan. The café continued trading.
Without SBR: Voluntary administration at higher cost and with loss of control, or voluntary liquidation — winding up the café and losing all employee positions. The ATO would likely have recovered less than 45 cents from asset realisation.
Business type: Two-director residential building company in Queensland, operating for 5 years.
Debt profile: Total liabilities approximately $720,000. ATO debt (SGC and PAYG): $310,000. Subcontractor and materials creditors: $280,000. Director-guaranteed bank overdraft: $130,000 (secured).
Why SBR: A major project delay caused a cashflow crisis, triggering SGC defaults. Two contracted builds in progress worth significant future revenue. Existing subcontractors were willing to continue work if the company survived.
Hypothetical outcome: Plan funded by anticipated progress payments from active contracts, offering unsecured creditors 38 cents in the dollar over 18 months. Plan approved by majority of eligible creditors. The director’s personal guarantee on the bank overdraft remained live outside the plan.
Without SBR: Liquidation would have forced a halt to active builds, triggering contract rescission and likely nil return to unsecured creditors. Both directors would have faced DPN exposure for the SGC arrears.
Business type: Single-location homewares retailer in regional NSW, trading for 9 years.
Debt profile: Total liabilities approximately $390,000. ATO (GST arrears): $180,000. Supplier creditors: $160,000. Landlord rent arrears: $50,000.
Hypothetical outcome: Plan proposed 50 cents in the dollar over 30 months, supported by trading cashflow and a small capital injection from a family member. ATO and majority of trade creditors voted in favour. Landlord was bound by the majority vote.
Debt profile: Total liabilities approximately $310,000. ATO (income tax and PAYG): $220,000. Trade creditors: $90,000.
Why SBR: A significant government services contract generating stable monthly revenue for two years. Without SBR, ATO enforcement action threatened the company’s ability to fulfil the contract.
Hypothetical outcome: Plan proposed 60 cents in the dollar over 24 months, funded by government contract revenue. ATO accepted the plan. All obligations met within 22 months.
Debt profile: Total liabilities approximately $960,000. ATO: $640,000. Trade creditors: $190,000. Equipment finance: $130,000.
Why SBR was not used: The company had not lodged BAS for 36 months, directly disqualifying it from SBR. Even if lodgements were brought current, the ATO holding approximately 67% of eligible voting debt and the history of repeated non-compliance made plan approval highly unlikely.
Lesson: SBR requires not only eligibility but realistic prospects of creditor approval. A history of non-lodgement, a dominant ATO creditor, and a poor compliance track record significantly reduce those prospects.
Common Mistakes Directors Make
The single most common and costly mistake is delay. Directors who continue trading in hope that conditions will improve often find that by the time they consult an insolvency practitioner, their liabilities have grown beyond the $1m cap, tax lodgements have lapsed, or employee entitlements have fallen into arrears — disqualifying them from SBR altogether.
SBR eligibility requires that all employee entitlements due and payable are discharged before appointment. Directors who have deferred wages or leave payments may face the difficult position of needing to make those payments — often tens of thousands of dollars — before they can even appoint an SBRP.
Failing to lodge BAS, income tax returns, or PAYG statements does not just result in ATO penalties — it directly disqualifies the company from SBR. Keeping lodgements current (even if full payment is deferred) is one of the most important practical steps a financially stressed director can take.
A restructuring plan that cannot realistically be fulfilled during its term is worse than no plan at all. Plans approved on the basis of optimistic projections that then fail during implementation expose directors to additional scrutiny and may result in creditors receiving a worse outcome than in an earlier liquidation.
SBR addresses the company’s debts. It does not discharge lockdown DPN liability, does not affect personal guarantees, and does not provide immunity from insolvent trading claims during the plan period. Directors sometimes enter SBR with a false expectation that it resolves their personal liability — it does not.
Creditors who feel surprised or misled are less likely to vote for a restructuring plan. Early, honest communication — even before a formal plan is developed — builds the credibility essential to plan approval. Staff who feel uninformed may resign during the critical moratorium period, destabilising the business the plan is designed to save.
Frequently Asked Questions
1. What is the maximum debt level to qualify for SBR in Australia?
The company’s total liabilities must not exceed $1,000,000 at the time of the SBRP’s appointment. This cap applies to all creditors in aggregate, including ATO debt, trade creditors, and related-party loans.
2. Can I keep running my business during SBR?
Yes. Unlike voluntary administration, SBR is a debtor-in-possession process. Directors retain management and operational control of the company throughout. The SBRP assists but does not displace the directors.
3. Does SBR stop the ATO from taking action against me personally?
The SBR moratorium suspends enforcement by the ATO against the company. However, if you have a “lockdown” Director Penalty Notice — where your personal liability has already crystallised — the moratorium does not suspend or discharge that personal liability.
4. How long does the SBR process take?
The core statutory process runs over approximately 35 business days: 20 business days for the SBRP to develop the plan, followed by a 15-business-day creditor voting period. If approved, implementation may run for months to years depending on the plan.
5. What happens if creditors reject the plan?
The process ends. The moratorium ceases, creditor enforcement resumes, and the company must consider its next steps — which may include voluntary administration or liquidation.
6. Does my ATO debt have to be fully paid under an SBR plan?
No. The ATO is treated as an unsecured creditor and is bound by an approved plan. Plans commonly offer less than 100 cents in the dollar. However, the ATO assesses whether the proposed return is at least as good as a liquidation outcome, and will vote accordingly. Acceptance is not guaranteed.
7. Do I need tax lodgements up to date to enter SBR?
Yes. All tax lodgement obligations must be current before an SBRP can be appointed. You do not need to have paid all outstanding ATO debts — only to have lodged all required returns.
8. Will SBR affect my employees?
SBR is designed in part to protect employment. Because the company continues trading under director control, employees can remain employed throughout. All employee entitlements due and payable must be paid before the SBRP can be appointed.
9. Can a company enter SBR more than once?
A company cannot enter SBR if it has been subject to an SBR restructuring plan or simplified liquidation within the preceding seven years. The same restriction applies to the company’s directors in relation to other companies they have directed.
10. What does the SBRP actually do?
The SBRP — a registered liquidator specifically authorised for SBR — assists directors in formulating the restructuring plan, certifies eligibility requirements are met, communicates the plan to creditors, manages the voting process, and (if approved) oversees implementation including distributing payments to creditors.
11. How much does Small Business Restructuring cost?
There is no statutory entry fee for SBR. The SBRP’s professional fees are the primary cost, typically structured as a fixed component plus a percentage of distributions. Always obtain a written fee estimate before proceeding.
12. Does SBR protect my personal assets?
SBR is a company-level process. It does not protect directors’ personal assets from personal liability obligations such as personal guarantees, lockdown DPNs, or personal insolvent trading claims.
13. What if my company’s debts are over $1 million?
If total liabilities exceed $1,000,000, the company does not qualify for SBR. Voluntary administration or liquidation are the relevant alternatives, depending on whether the business has viable prospects.
14. Can the ATO block my SBR plan?
If the ATO holds more than 50% of the eligible voting debt, it can single-handedly reject the plan. A plan that credibly offers a better return than liquidation is more likely to receive ATO support, but this is not guaranteed.
15. Is SBR suitable for a sole trader or partnership?
No. SBR is only available to companies incorporated under the Corporations Act 2001. Sole traders and partnerships are not eligible and should consider personal insolvency mechanisms under the Bankruptcy Act 1966.
Decision Framework: Is SBR Right for Your Business?
- Is the business genuinely viable? Does the company have revenue that can fund a multi-year repayment plan while covering operating costs?
- Are total liabilities within the $1,000,000 cap? Have you prepared an accurate, complete list of all creditors?
- Are all employee entitlements paid and current? Can you source the funds to discharge any outstanding entitlements before SBRP appointment?
- Are all tax lodgements up to date? Is every BAS, income tax return, PAYG statement, and SGC return lodged?
- What is the likely creditor response? If the ATO holds the majority of eligible voting debt, does your proposed plan credibly exceed the liquidation comparator?
- Can you manage the business and the restructuring simultaneously? SBR requires ongoing director engagement and operational discipline throughout.
- Have you obtained independent advice on your personal liability position — DPNs, guarantees, and insolvent trading exposure? Submit a confidential enquiry
- Total liabilities exceed or are close to $1,000,000 and are still growing.
- Tax lodgements are significantly in arrears and would take substantial time to bring current.
- Employee entitlements are unpaid and there is no clear source of funds to discharge them.
- The company has already used SBR or simplified liquidation in the past seven years.
- The ATO holds the dominant share of eligible voting debt and has a documented history of rejecting payment arrangements.
- The business has no viable revenue pipeline — the viability issue is structural, not cyclical.
- Directors have serious personal liability exposure (lockdown DPNs, multiple personal guarantees) that SBR will not address.
- Financial advisers have indicated the company cannot service a plan without further deteriorating creditor outcomes.
Practical Next Steps
If you are a director of an Australian small company facing mounting debt, ATO pressure, or creditor enforcement, the most important step you can take right now is to act early. The options available to you — and the personal risk you carry — are directly affected by the decisions you make in the coming weeks and months.
Begin by preparing a clear picture of your financial position: a current balance sheet, a complete creditor list with estimated amounts owed (including the ATO), copies of any Director Penalty Notices or ATO enforcement communications, and a realistic assessment of the company’s forward trading revenue.
Early warning signs that professional advice is needed urgently include: inability to meet PAYG withholding or superannuation obligations as they fall due; receipt of a Director Penalty Notice from the ATO; supplier creditors placing the company on stop-credit; inability to pay wages or employee entitlements; and judgment debts or enforcement proceedings initiated by creditors.
Next step: Contact a registered liquidator or insolvency lawyer to obtain an initial assessment of your company’s position. RestructurePartners.com.au can connect you with experienced practitioners who understand the SBR regime and can provide a clear, confidential assessment of your options. There is no obligation to proceed, and early advice almost always leads to better outcomes.
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Vedran Maric is a Certified Practising Accountant and founder of BVM Accountants and Business Consultants, based in Sydney, NSW. He holds a Master of Applied Finance and Banking from Western Sydney University and completed his CPA certification through CPA Australia.
Before establishing his own practice, Vedran spent over a decade in senior finance roles at Citibank, where he held positions including Head of Financial Planning and Analysis and Head of Operational Support and Strategy — advising on financial risk, business restructuring, and operational efficiency across the bank’s Australian operations.
He now works with Australian business owners navigating complex financial challenges, including insolvency options, cash flow management, and business restructuring. His corporate banking background gives him a practical, numbers-first perspective on the options available to directors facing financial distress — including Director Penalty Notices, Small Business Restructuring, and Voluntary Administration.
Vedran reviews content on this site for technical accuracy. This content is informational only and does not constitute financial or legal advice.
The content of this article is provided for general information purposes only. It does not constitute legal, insolvency, tax, or financial advice and is not a substitute for personalised professional advice. The information provided reflects the general framework of the Small Business Restructuring regime under Part 5.3B of the Corporations Act 2001 (Cth) but may not reflect recent legislative amendments, regulatory guidance, or case law. Outcomes in insolvency matters depend entirely on the specific facts of each case.
You should seek personalised advice from a registered liquidator, an insolvency lawyer, or a qualified tax professional before taking any action in relation to your company’s financial position. Nothing in this article should be relied upon as a representation that any particular outcome will be achieved.
RestructurePartners.com.au is not responsible for any action taken or not taken on the basis of this general information.