Small Business
ATO debt hanging over you? A restructuring plan could help you cut a deal, keep trading, and take back control of your business. Learn more: mySBR.
ATO debt hanging over you? A restructuring plan could help you cut a deal, keep trading, and take back control of your business. Learn more: mySBR.
The process can feel overwhelming — especially when you’re under pressure. The good news is, once you understand how a restructuring plan works, it feels a lot more manageable.
Here’s what you need to know before you begin.
A Small Business Restructuring Plan isn’t about paying everything back. It’s about making a fair offer to your creditors — one your business can actually afford. That offer is put together with the help of a registered restructuring practitioner, often in collaboration with your accountant or bookkeeper.
The plan usually includes:
While you stay in control of your day-to-day operations, your restructuring practitioner will help you manage creditor communication, make sure your plan is compliant, and guide you through each step of the small business restructuring process.
Once the plan is ready, creditors have 15 business days to review and vote on it. Only unrelated creditors (not directors or family members) get a vote, and it’s based on the value of debt — not how many creditors you have. If more than 50% (by value) vote yes, the plan is approved and becomes legally binding on all creditors involved.
The ATO is often the largest creditor in these plans. Their vote can make or break your proposal — which is why it’s so important to be up to date with employee entitlements and tax lodgements, and to work with small business restructuring specialists who understand how the ATO assesses proposals.
You keep trading as normal while sticking to the repayment plan. Payments are made to your restructuring practitioner, who distributes the funds to creditors on your behalf.
As long as you meet the agreed terms, your remaining debt is wiped at the end of the plan — and the creditors can’t chase you for the difference. That’s the power of a successful small business restructure.
If the majority of creditors vote no, the protections offered by SBR end immediately. That means creditors can once again take recovery action, including legal claims or statutory demands.
You won’t be able to try the SBR process again for seven years, so it’s important to get your plan right the first time. If your restructuring plan is rejected, your practitioner can help you explore other options — like voluntary administration or liquidation — depending on what’s viable for your business.
You’ve learned what a restructuring plan involves, who decides whether it’s accepted, and what happens next.
You’ve seen how a well-prepared plan can reduce your debt and keep your business running.
The next step is making sure your plan is realistic, compliant, and supported by the right people.
And at mySBR, we help business owners get it right — with upfront advice, fixed fees, and experience working with the ATO and trade creditors.
Want to know if an SBR plan could work for you? Book a free consultation with our small business restructuring team — and let’s figure out the best next step for your business.
Not ready to take the next step just yet? Subscribe to the SALEA Advisory mailing list for the latest updates on Small Business Restructuring, helpful resources, and news to support your business through financial challenges.
Take the first step toward a stronger future for your company. Contact us today.
We help small business owners move through short-term financial pressure with a clear plan and practical support — so they can protect what they’ve built and look ahead to a promising future.
Book your free consultation to determine if our Small Business Restructuring services are right for your company.
Email us at [email protected]
or call us at 1800 311 901
