As small businesses grapple with a range of financial pressures including rising tax debts, high power prices, labour shortages and the broader cost-of-living crisis, many are turning to the Small Business Restructuring regime as a practical way to regain control. This streamlined business rescue option allows eligible, viable businesses to address legacy debt while continuing to trade.
Introduced in 2021, the SBR regime has helped hundreds of small businesses stabilise their financial position, reduce tax debts, and retain jobs. The number of businesses seeking advice on SBR continues to grow, with many viewing it as a preferable alternative to voluntary administration or liquidation.
“We’re seeing a noticeable shift in how small business owners respond to early financial stress. Rather than waiting too long or panicking, they’re actively exploring restructuring early—often with strong outcomes for creditors, employees and directors alike.”
Why the SBR process remains a game changer
The SBR pathway allows eligible businesses to develop and propose a restructuring plan to creditors, with oversight from a registered Small Business Restructuring Practitioner. One of the biggest upsides is that directors remain in control during the process, unlike other formal insolvency options.
Key benefits of the SBR process include:
- Higher creditor returns than liquidation
- Retention of control by company directors
- Protection from insolvent trading claims
- Preservation of employment and supplier relationships
- Reduced professional fees compared to traditional restructuring options
- Positive engagement with the ATO, which continues to support viable SBR Plans
- Simplicity and speed, with most plans completed in 35 business days
Eligibility remains unchanged:
- Total company liabilities must not exceed $1 million
- All ATO lodgements must be current
- Employee entitlements, including super, must be paid in full
“Many business owners are surprised to learn just how accessible and practical the process is. It’s not about shutting up shop, it’s about financial recalibration and moving forward.”
Success Stories Across Industries
We have handled SBRs across a wide range of industry sectors around Australia, with encouraging results.
Civil Engineering (NSW)
A civil engineering company impacted by ongoing project delays and rising costs used SBR to reduce a $700,000 debt burden. The restructuring plan returned 22 cents in the dollar to creditors, with the ATO and key suppliers supporting the plan. The business retained its 12 staff and secured new contracts post-restructure.
Event Management (VIC)
After a turbulent few years and slow ticket sales post-COVID, a Melbourne-based events company utilised SBR to restructure over $400,000 in liabilities. The process allowed the team to retain control, return 18 cents in the dollar to unsecured creditors, and continue trading. The ATO again played a supportive role.
Retail Fashion (QLD)
A regional retailer with both physical and online stores faced mounting pressure due to high rental costs and delayed stock imports. Through SBR, the business was able to reduce legacy debt and negotiate better supplier terms. A 24-cent in the dollar return was achieved, and all store staff retained their jobs.
Hospitality Supplier (WA)
A commercial kitchen supplier caught out by bad debts and margin erosion used SBR to restructure debts totalling $950,000. The plan preserved the business, saved 15 jobs, and returned 28 cents in the dollar to creditors – avoiding the alternative of closure and a nil return.
Don’t wait until it’s too late
Business owners who are experiencing early signs of financial strain to seek professional advice before problems spiral. The earlier you act, the more options you’ll have. We’ve seen time and time again that SBR can be the lifeline a business needs – it protects value, jobs, and relationships.
If your business is under pressure, it’s worth having a conversation. The Small Business Restructuring Process could be the circuit breaker you need to reset and rebuild.
Get in touch by booking your 30min free SBR consult here.