How Much Does SBR Cost? A Complete Breakdown

TL;DR: ASIC Report 810 data shows SBR costs $15,000-$30,000 total: median restructuring practitioner fee of $16,137 plus median plan administration fee of $6,739. This compares favourably to voluntary administration ($50K+) or liquidation ($20K-$50K). With an 87% plan approval rate and typical debt reduction of 60-80%, the ROI on SBR fees is substantial. Most practitioners offer fixed-fee arrangements.

One of the first questions business owners ask about Small Business Restructuring is: “How much will it cost?” It’s a fair question — you’re already dealing with debt, and you need to know what you’re committing to.

Here’s the complete breakdown based on ASIC data and industry practice.

How Much Does SBR Cost? The Short Answer

According to ASIC Report 810, the typical total cost of SBR is $15,000 to $30,000.

This covers:

• The restructuring phase (appointing a practitioner and developing the plan)
• The plan administration phase (overseeing payments to creditors)

Most practitioners offer fixed-fee arrangements, so you’ll know the cost upfront before you commit.

SBR Fee Breakdown: Restructuring Phase vs Plan Administration

Phase 1: Restructuring Phase

Median cost: ~$16,000

This is the first 20 business days after you appoint a restructuring practitioner. During this phase:

• The practitioner investigates your company’s affairs
• You work together to develop a restructuring plan
• The plan is sent to creditors for voting

The restructuring phase fee covers all the work required to get your plan to the voting stage.

Phase 2: Plan Administration

Median cost: ~$6,700

If creditors approve your plan, the practitioner oversees its implementation. This includes:

• Collecting payments from you according to the schedule
• Distributing funds to creditors
• Monitoring compliance with the plan
• Finalising the plan when complete

Plan administration can last up to 3 years, depending on your payment schedule.

What Affects SBR Practitioner Pricing?

Not all SBR cases are the same. Several factors influence pricing:

Complexity of Your Affairs

If your business has:

• Multiple creditors
• Complex financial records
• Related party transactions
• Disputed debts

…expect to pay more. Simple cases with clear records cost less.

State of Your Records

If your books are a mess, the practitioner needs to spend more time understanding your financial position. Clean, up-to-date records = lower costs.

Number and Type of Creditors

More creditors means more communication, more voting coordination, and more administration. Similarly, difficult or hostile creditors can increase costs.

Size of Your Debt

While SBR is capped at $1 million in liabilities, practitioners may charge more for larger debts given the stakes and complexity involved.

Your Location

Practitioners in major cities may have different fee structures than regional practitioners. However, most SBR work is done remotely, so location is less important than it once was.

SBR vs Voluntary Administration vs Liquidation: Cost Comparison

Let’s put SBR costs in context:

Option	Typical Cost	Outcome
SBR	$15,000-$30,000	Reduced debt, business survives
Voluntary Administration	$50,000+	Uncertain outcome, lose control
Liquidation	$20,000-$50,000	Business closes, assets sold
Payment Plan	No upfront cost	Pay 100% of debt

SBR is often the most cost-effective option for a business that wants to survive.

SBR Return on Investment: How the Maths Works

Here’s how to think about SBR costs:

Example:

• Total debt: $300,000
• SBR cost: $25,000
• Proposed payment to creditors: $90,000 (30 cents in the dollar)
• Total paid: $115,000
• Debt eliminated: $185,000

In this scenario, you’re paying $25,000 to eliminate $185,000 in debt. That’s a return of over 7:1.

Even in less favourable scenarios, the maths usually works:

Conservative example:

• Total debt: $150,000
• SBR cost: $20,000
• Proposed payment: $60,000 (40 cents in the dollar)
• Total paid: $80,000
• Debt eliminated: $70,000

You’re still eliminating $70,000 in debt for a $20,000 investment.

SBR Payment Options and Timing

Most practitioners understand that cash flow is tight when you need SBR. Payment arrangements vary:

Upfront Payment

Some practitioners require full payment upfront for the restructuring phase. This is common and provides certainty for both parties.

Staged Payments

Others will accept payments over the restructuring period — perhaps 50% upfront and 50% when the plan is sent to creditors.

From First Creditor Payment

In some cases, the restructuring fee can be paid from the first lump sum that would otherwise go to creditors. This requires creditor agreement but can help with cash flow.

Plan Administration

The plan administration fee is typically paid during the plan itself, either as a fixed amount or as a percentage of distributions.

Ask potential practitioners about their payment terms — there’s often flexibility.

How to Budget for Small Business Restructuring

If you’re considering SBR, here’s how to plan:

1. Get quotes from multiple practitioners Most offer free initial consultations. Get at least 2-3 quotes to understand the range.

2. Ask for fixed fees Avoid hourly arrangements where possible. Fixed fees give you certainty.

3. Understand what’s included Make sure you know exactly what the fee covers. Are there potential additional costs?

4. Factor in the plan payments Remember, you’ll also need to make payments to creditors. Budget for both the practitioner fees AND your plan contributions.

5. Consider timing If cash flow will improve in coming months (seasonal business, expected payment, etc.), timing your SBR appointment can help with affordability.

Hidden Costs Beyond SBR Practitioner Fees

Beyond practitioner fees, be aware of:

Accounting Costs

You may need your accountant to help prepare financial statements or catch up on lodgements. Budget for their time.

Legal Costs

Most SBR cases don’t require lawyers, but complex situations (disputed debts, legal claims) might.

Lost Revenue

During the 35-day process, you might lose some time to meetings and document gathering. Plan accordingly.

Opportunity Costs

Money spent on SBR can’t be spent elsewhere. But compared to the alternative (ongoing debt stress, enforcement, possible closure), it’s usually worth it.

Questions to Ask SBR Practitioners About Fees

When speaking with restructuring practitioners, ask:

1. What is your total fixed fee for the restructuring phase?
2. What is your plan administration fee, and how is it calculated?
3. What payment terms do you offer?
4. What’s included in your fee? What might cost extra?
5. Do you charge for the initial consultation?
6. What happens if the plan isn’t approved by creditors?

Good practitioners will be transparent about costs. Be wary of anyone who’s vague about fees or won’t provide written quotes.

Is Small Business Restructuring Worth the Cost?

For most eligible businesses, yes.

Consider:

• The debt relief typically far exceeds the cost
• The alternative (struggling on or closing) often costs more
• You keep your business and livelihood
• The process is relatively quick (35 days to approval)
• 87% of plans are approved

The question isn’t really “Can I afford SBR?” It’s “Can I afford not to do SBR?”

Next Steps

If you’re considering SBR and want to understand the likely costs for your specific situation:

1. Check your eligibility first
2. Gather basic information about your debts and creditors
3. Speak with 2-3 restructuring practitioners
4. Get written quotes
5. Make an informed decision

Most initial consultations are free. You have nothing to lose by exploring your options.