Small Business Restructuring for Transport & Logistics — SBR for Trucking & Fleet Operators

Based on ASIC data, businesses typically see debt reductions of 60-80% through SBR. However, the exact amount depends on your specific circumstances and what creditors will accept. The proposed payment must offer creditors a better return than they would receive if the company went into liquidation.

The ATO has shown strong support for SBR, approving over 90% of plans where they are a creditor. The ATO recognises that receiving a reduced payment through SBR is often better than receiving nothing through liquidation. However, your tax lodgements must be up to date for the ATO to support your plan.

Yes. Directors retain control and day-to-day operations continue. Trucks roll, drivers are paid, contracts are delivered, fuel and tolls are paid on current terms. The main discipline during SBR is not accumulating new debt on existing creditor balances while the plan is being voted on.

Fleet finance is typically secured under PPSA and arrears must be managed early because repossession risk directly affects contract delivery. Financiers generally prefer continued payments and fleet use to repossession (used truck recovery values are well below financed amount). Your practitioner may negotiate a standstill or continued-use arrangement while the plan is prepared.

NHVR does not automatically suspend operator accreditation due to SBR alone. Accreditation continues on the basis of operational compliance (vehicle maintenance, driver fatigue, mass compliance). Financial failure alone does not terminate accreditation, but disclosure obligations apply and compliance resourcing must be maintained in the plan cash flow.

Contracts typically contain termination rights on insolvency events, but principals generally prefer continuity to the disruption of new carrier onboarding. SBR is less disruptive than VA or liquidation because the business keeps running. Review each contract with your practitioner — early, evidence-based engagement typically preserves contracts.

Fuel card providers typically move to COD or shortened terms when financial stress is disclosed. Historic fuel card debt forms part of the plan; post-appointment fuel purchases must be paid on current terms. Fleet operators need operational fuel supply to deliver contracts — prioritise fuel continuity in the 13-week cash flow.

Fuel cards and toll operators (Linkt, E-TAG) are trading-critical. Historic debt forms part of the plan; current-period charges must be paid on time. Unpaid tolls can escalate to registration suspension. Toll and fuel arrears should be triaged early to preserve fleet roadworthiness and registration status.

Employee entitlements (wages, super, leave, LSL) are protected and paid in full — they are not part of the reducible debt pile. Portable long-service schemes where applicable continue to accrue. Retaining experienced drivers is typically essential to preserving contracts, so protecting wage payment discipline is commercially and legally important.

Yes. Directors retain control and can continue quoting and signing new work. New contracts help build the viability case for the plan. Tender processes for government or major corporate contracts may request financial capacity evidence — a practitioner letter and current cash flow typically address these concerns.

Road user charge payable to the ATO is reducible like other ATO unsecured debt. Fuel tax credits that are refundable to you are assets. Your practitioner will reconcile the net ATO position at appointment and include it in the plan.

State accrediting bodies (CPV Victoria, Transport for NSW, QLD TMR, WA DoT, SA DIT) do not automatically cancel accreditation due to SBR. Disclosure obligations apply and fitness reviews may be triggered. A viable plan that preserves driver, vehicle, and insurance compliance typically supports continued accreditation.

Directors must move quickly to a fallback: targeted renegotiation with principals and fleet financiers, Voluntary Administration (VA) where complexity blocks an SBR outcome, or orderly closure/liquidation where viability cannot be restored. Fleet operators should have a fallback ready before voting starts — transport viability deteriorates quickly without working capital.

Fleet and contract schedule with utilisation data, creditor aging (ATO, fleet finance, fuel cards, tolls, key suppliers), BAS and PAYG lodgement status, NHVR/state accreditation certificates, major contract terms, driver roster and wage position, and a 13-week cash flow forecast. Having this material ready compresses the scoping phase.