In January 2021, as a result of the impact and forecasted economic impact of the COVID-19 pandemic on businesses coupled with the expected spike in insolvency numbers, the Australian Government introduced a new insolvency regime called Small Business Restructuring to provide a pathway to save as many businesses as possible – a pathway for small businesses to combat debt, keep the doors open and survive long term.
The Small Business Restructuring regime allows eligible small businesses in financial difficulty a one-off opportunity to restructure their company debt and reach a legally binding agreement with creditors.
During this process the owners remain in control of business operations and creditor relationships, which maximises the chances of trading viably in the future and provides better outcomes for creditors and employees.
Following an upsurge in the Australian Taxation Office’s firmer or stronger recovery action, and better understanding of the process and benefits among key stakeholders has led to an increase in the number of Small Business Restructuring appointments as the regime is being used as a procedure to compromise tax debt.
It is simpler, affordable and faster than any other form of external administration and is becoming the “go-to” solution for many small businesses in financial difficulty. The regime has had a high approval rate indicating that the process has been successful in helping businesses restructure their debts.
We are of the view it is very well suited to small businesses and will continue to be increased in scope as more people become aware of the financial benefits.
Eligibility criteria
Process
The many benefits of Small Business Restructuring include: directors stay in control of the business; the company can continue to trade; the process is fast with creditors required to vote within 35 business days; and debt is permanently written off.
Please feel free to contact us now for a free and confidential initial consultation to see if your business qualifies – it’s an opportunity you can’t afford to miss out on!
Seeking more information about our small business restructuring services? Call us today on (03) 6224 4660.
Level 1/63 Salamanca Pl, Battery Point, TAS 7004
Registered Liquidator
Registered Trustee in Bankruptcy
Small Business Restructuring Practitioner
Public holidays Closed
Public holidays Closed
ABN: 27 093 137 305
Liability limited to a scheme approved under Professional Standards Legislation.