Small Business Restructuring (SBR) is a government-backed solution for small businesses facing financial distress, ATO tax debt, or pressure from creditors. It allows you to reduce debt and stay in control, without the disruption of Voluntary Administration or liquidation.
If you’re behind on tax and suppliers are chasing payment, you’re likely seeking a simple solution that keeps your doors open. Small Business Restructuring (SBR) is a government-backed process that lets you tackle debt, keep control, and avoid liquidation.
This guide breaks down what SBR is, how it works, and what to expect — so you can decide if it’s right for your small business.
SBR helps viable small businesses reduce financial pressure from ATO debt or supplier arrears. Unlike liquidation or voluntary administration, you keep trading while a registered practitioner helps you restructure what you owe.
The aim is to reduce your debt, protect your business, and give creditors a better shot at getting paid than if you closed up.
The process moves fast, so stress doesn’t drag on. If you owe less than $1 million, are up to date with entitlements and tax lodgements, and haven’t used SBR or simplified liquidation in the last 7 years, you’re likely eligible.
If you’re eligible, here’s what happens next:
A registered liquidator will confirm your eligibility, help you build a small business restructuring plan, and negotiate with creditors (including the ATO).
Company directors keep running the business day to day while the plan is being prepared and submitted.
You and your practitioner build a realistic repayment plan, usually over 12 to 36 months. Creditors get the plan and vote to approve or reject it.
If the majority of creditors (by value) vote in favour, the plan becomes binding, and you get a clear path out of debt. Plans usually get approved if you’re compliant, the offer is fair, and you communicate well with the ATO and key creditors.
If your plan is approved, you get breathing room to repay debt and stay in control. Staff, customers, and suppliers are also protected.
If creditors reject the plan, you may need to look at voluntary administration or liquidation. That’s why it’s vital to get advice early and only move forward if the plan is realistic.
SBR is open to eligible businesses in any industry, though it’s commonly used in high-pressure sectors. We’ve helped businesses in construction, hospitality and retail, to name a few. If you’re unsure, we can confidentially check your eligibility.
No; in most cases, your team and clients won’t be notified.
Yes — ATO debts, including PAYG, GST, and superannuation, can usually be included in an SBR plan.
Most SBRs wrap up in 6 to 8 weeks from appointment to plan approval. Debts are usually repaid over 1 to 3 years after that.
Company restructuring can be a lifeline for viable businesses under debt pressure.
Now that you know how SBR works, you can take your next step with more clarity and less stress.
If financial pressure is keeping you up at night, SBR could be the circuit breaker you need. mySBR helps you understand your options, make informed decisions, and stay in control.
Our free Small Business Restructuring guide explains the SBR process from start to finish in plain English.
Want personalised advice instead? Contact our small business restructuring specialists.
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.
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