Expert guides, industry news, and practical advice on Small Business Restructuring (SBR) for Australian business owners facing financial challenges.
What does ASIC Report 810 say about SBR? 3,388 appointments, 87% plan approval rate, 93% still trading, median practitioner fee $16,137. Official data from Australia's regulator.
What happens when you can't pay ATO debt? The ATO escalates from letters to garnishee notices, DPNs, and wind-up applications. SBR can reduce debt 60-80% and halt enforcement immediately.
How do you spot a dodgy SBR practitioner? Check ASIC registration, get written fee quotes (median $16,137), compare 2-3 practitioners, and avoid anyone guaranteeing outcomes.
What does ASIC Report 810 say about SBR? 3,388 appointments, 87% plan approval rate, 93% still trading, median practitioner fee $16,137. Official data from Australia's regulator.
How does SBR work for tradies? Electricians, plumbers, and builders can reduce ATO debt 60-80% while keeping their licence. 87% plan approval rate, 93% still trading.
Can SBR help restaurants eliminate COVID debt? Yes — hospitality businesses typically reduce ATO and landlord debts by 60-80%. The ATO votes yes on SBR plans over 90% of the time.
Does SBR affect your QBCC licence? SBR may trigger QBCC scrutiny but is often the best option for preserving your licence — unlike liquidation, the business keeps trading.
What is the ROI of Small Business Restructuring? Typical SBR cases show 400-740% ROI, with median practitioner fees of $16,137 and 60-80% debt reduction.
What does 'viable' mean for SBR eligibility? A business is viable if it can operate profitably once historical debt is removed. 93% of SBR companies are still trading post-restructure.
SBR or ATO payment plan? SBR reduces debt 60-80% (pay 20-40 cents/dollar) while payment plans require 100% plus GIC interest. ATO votes yes on SBR plans >90% of the time.
How does SBR compare to Voluntary Administration? SBR costs $15k-$30k vs VA's $50k-$150k+, has an 87% plan approval rate, and directors stay in control.
Should you choose SBR or liquidation? SBR keeps your business trading (93% still operate post-SBR) with 60-80% debt reduction. Liquidation closes permanently with 5-10 cent creditor returns.
What happens when you can't pay ATO debt? The ATO escalates from letters to garnishee notices, DPNs, and wind-up applications. SBR can reduce debt 60-80% and halt enforcement immediately.
Does the ATO approve SBR plans? Yes — the ATO votes in favour of Small Business Restructuring plans over 90% of the time. They prefer 20-40 cents in the dollar via SBR over 5-10 cents in liquidation.
Are employee wages and super protected during SBR? Yes — all entitlements must be paid in full. 93% of SBR companies keep trading and jobs are preserved.
What are the warning signs of small business insolvency? Cash juggling, growing ATO debt, unpaid directors, and aggressive creditors. SBR can reduce debt 60-80% if you act early.
Can you keep running your business during SBR? Yes — directors retain full control. Unlike voluntary administration, you manage operations while the plan is developed over 20 business days.
How is the ATO collecting $34 billion in small business debt? Through garnishee notices, DPNs, credit reporting, and wind-up applications. SBR can reduce debt 60-80% and halt enforcement.
How much does SBR cost? ASIC data shows median practitioner fee of $16,137 plus $6,739 plan fee. Total SBR cost is $15K-$30K — far less than voluntary administration at $50K+.
What are your options after receiving a Director Penalty Notice (DPN)? You have 21 days to act. SBR can halt DPN enforcement and reduce the underlying debt by 60-80%. Lockdown vs non-lockdown DPNs explained.
Why hasn't your accountant mentioned SBR? Most accountants aren't insolvency specialists. SBR has had 3,388 appointments with an 87% approval rate — ask about it directly.
What is Small Business Restructuring (SBR)? A government-backed process letting eligible Pty Ltd companies reduce debt by 60-80% while directors stay in control. 87% plan approval rate.
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