Our Restructuring Services
We offer a full suite of restructuring services designed to help businesses regain stability and preserve value. We begin by assessing your situation and tailoring a solution that may include financial restructuring, operational restructuring, strategic restructuring, or organisational restructuring, depending on your needs.
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Financial restructuring focuses on reducing debt burdens through negotiations with creditors, repayment plans, or refinancing. Operational restructuring targets cost control, efficiency, and supply chain optimisation. Strategic restructuring involves revisiting your business model, markets, or product lines to improve long-term viability. Organisational restructuring can include streamlining reporting lines, shifting responsibilities, or resetting culture and leadership focus.
Where formal intervention is required, we can guide you through two key statutory options: Small Business Restructuring (SBR) and Voluntary Administration (VA) followed by a Deed of Company Arrangement (DOCA). SBR is a streamlined, cost-effective process suited to eligible SMEs and allows directors to retain control while putting forward a restructuring plan. VA, followed by a DOCA, is a more comprehensive process often used for larger or more complex businesses, or where SBR eligibility criteria are not met.
Our experienced team will help you choose the right path, manage key stakeholders, and implement a practical, compliant restructuring solution aimed at preserving business value and maximising outcomes for all stakeholders.
SBR Outcome
Up to 91%
35 Days
93%
What is Small Business Restructuring (SBR)?
Small Business Restructuring (SBR) is a streamlined process under Part 5.3B of the Corporations Act 2001 designed to help financially distressed but viable small businesses restructure their debts and continue trading. Introduced on 1 January 2021 as part of the Australian Government’s insolvency reforms, SBR offers a simplified restructuring process tailored to the needs and resources of small business owners.
Under SBR, company directors remain in control of daily operations while working with a registered Small Business Restructuring Practitioner (SBRP) to develop and propose a restructuring plan to creditors. This contrasts with traditional voluntary administration, where control of the company passes entirely to an external administrator.
To be eligible, a company must have liabilities of less than $1 million and must be up to date with employee entitlements and tax lodgements. The process is designed to be faster and more cost-effective than other formal insolvency options, making it particularly suited to smaller enterprises with limited resources.
Am I eligible for Small Business Restructuring?
To qualify:
- Total company liabilities do not exceed $1 million (including related-party debts)
- All employee entitlements, including superannuation, are paid and up to date
- All ATO lodgements are current – BAS, IAS, and income tax returns must be lodged (outstanding debt is acceptable; outstanding lodgements are not)
- The company is not currently under any other form of external administration
- Neither the company nor its directors have used SBR or simplified liquidation in the past 7 years
There is no turnover threshold, but the liabilities cap effectively limits the process to smaller businesses.
Meeting these small business restructuring criteria ensures access to a simplified restructuring eligibility pathway that preserves the company, protects jobs, and avoids more disruptive insolvency procedures.
If your business does not meet one or more of these criteria, other options may still be available – including Voluntary Administration, informal creditor arrangements, or in some cases, addressing outstanding lodgements before entering SBR. Contact IRT Advisory for a confidential eligibility assessment at no cost
How does the Small Business Restructuring process work?
Appoint Practitioner
Develop Restructuring plan
Creditors vote on Plan
Plan
Implemented
The entire SBR process – from appointment to creditor decision – takes 35 to 45 business days and is significantly faster and lower cost than Voluntary Administration. Throughout this period, directors continue to manage the business in the ordinary course of operations.
Once a plan is accepted by a majority of creditors (by value), the company is bound by its terms and released from the remaining balance of the compromised debts upon completion. The ATO, as the major priority creditor in many SBR appointments, evaluates plans on commercial and public policy grounds — assessing whether the proposed return exceeds what creditors would receive in a liquidation and also whether the company and its directors have conducted themselves honestly and appear worthy of ATO support. A credibly prepared plan, supported by realistic financial projections where payment over time is proposed, is essential to securing ATO approval.
Benefits of Small Business Restructuring (SBR)
Frequently Asked
Questions
How long does a business restructure take?
Every situation is different. Some restructures can be designed and implemented in a matter of weeks, while others may take several months. Acting early usually makes the process faster and smoother.
What are the risks of restructuring?
Restructuring involves change, so there are always risks. Creditors may not agree to a proposal, or the business may not generate enough cash flow to support the plan. With the right preparation and advice, these risks can be managed.
Do I need to lay off staff to restructure?
Not necessarily. While reducing costs is sometimes part of a restructure, many plans are focused on negotiating with creditors, improving cash flow, and adjusting operations without immediate staff cuts.
Will my creditors support a restructure?
Creditors are often open to supporting a genuine restructure if it offers a better return than liquidation. Being transparent and proactive increases the likelihood of gaining their support.
What are my legal obligations during restructuring?
Directors must continue to meet their duties under the Corporations Act, including avoiding insolvent trading. The safe harbour provisions can protect directors if they are pursuing a genuine restructure that is reasonably likely to deliver a better outcome.
How much does a restructure cost?
Costs vary depending on the complexity of the business and the process chosen. In most cases, costs are far less than the value preserved if the business can continue trading. Competition among practitioners also has an influence. You can be assured that IRT Advisory is always competitive and transparent with pricing.
Will I lose control of my business?
In a Small Business Restructure, directors usually remain in control while working with a restructuring practitioner. This allows you to keep running the business while implementing the plan.
