Small Business Restructuring (SBR) is a formal, director-led process that allows eligible Australian companies to restructure their debts while continuing to trade. It’s designed specifically for small businesses facing insolvency.
To be eligible, your company must have total liabilities of less than $1 million. BCR Advisory is one of Australia’s leading firms by volume of SBR appointments, with offices in Sydney, Brisbane, Adelaide, and Cairns.
If your business is under financial pressure, the SBR process may be the most powerful tool available to you.
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Is Your Business Eligible for the SBR Process?
The eligibility criteria for small business restructuring are set out under the Corporations Act 2001 and summarised by ASIC. All of the following conditions must be met on the day a Small Business Restructuring Practitioner (SBRP) is appointed.
Total liabilities must not exceed $1 million at the time of appointment.
All tax lodgements with the ATO must be current and up to date.
All employee entitlements must be paid. Outstanding superannuation must be paid within 6 weeks of appointment to maintain eligibility.
Directors must resolve that the company is insolvent, or likely to become insolvent, and that a restructuring practitioner should be appointed.
The SBR process must not have been used in the previous seven years. Limited exceptions apply for related body corporates.
Only a registered liquidator can act as the restructuring practitioner. Under section 456B(1) of the Corporations Act 2001, the appointed practitioner must hold current registration with ASIC.
Not sure if you qualify? BCR Advisory will assess your eligibility at no cost. Our senior practitioners will review your company’s financial position and advise you on the most appropriate path forward.
Speak to a Senior AdviserThe BCR Advisory 3-Phase SBR Process
BCR Advisory manages the entire SBR process on your behalf, from initial assessment through to creditor approval and plan implementation.
Appointment and Initial Assessment
A senior BCR Advisory practitioner will review your company’s financial position with you. We’ll look at total liabilities, creditor composition, cash flow, and trading viability to determine whether the SBR process is the right path forward and whether your business meets the eligibility criteria.
If SBR is appropriate:
- The directors formally appoint BCR Advisory as the Small Business Restructuring Practitioner in writing.
- ASIC is notified and records the appointment on the Company Register
- Throughout this phase, you remain in control of day-to-day operations
Plan Development
During this time, BCR Advisory works directly with you to develop a proposal to creditors that sets out how the company will repay its debts, in what amounts, and over what timeframe. The plan must be realistic, fair to creditors, and achievable for the business.
BCR Advisory handles:
- Creditor communications
- Ensures compliance with all statutory requirements
- Prepares the proposal for submission.
Creditor Vote and Plan Implementation
Once the restructuring plan is finalised, it is submitted to creditors for a 15-business-day voting period. Creditors vote on whether to accept or reject the plan. If a majority in value of creditors vote in favour, the plan is accepted and becomes binding on all creditors covered by it.
Once the plan is approved, BCR Advisory manages implementation. We:
- Oversee repayments
- Maintain compliance
- Work with the director to ensure the business meets its obligations under the plan
Upon successful completion, the company’s status on the ASIC register reverts to ‘registered,’ and the restructuring is formally concluded.
According to ASIC’s Review of Small Business Restructuring (REP 810, June 2025), of the 3,388 SBR appointments between July 2022 and December 2024, 2,820 transitioned to approved restructuring plans. It’s a success rate that demonstrates the process’s effectiveness for eligible businesses.
Restructuring vs. Liquidation: Understanding the Difference
Not every situation calls for SBR. Understanding the difference between restructuring and liquidation helps you make the right decision for your business, your staff, and your personal position.
| Small Business Restructuring (SBR) | Creditors Voluntary Liquidation (CVL) | |
|---|---|---|
| Director Control | Directors remain in control throughout | Control passes to the liquidator on appointment |
| Business Continuity | Business continues trading | Business ceases trading |
| Staff and Jobs | Employees are retained | Employees are typically made redundant |
| Outcome | Debt is restructured; the company survives | The company is deregistered |
| Debt Reduction | Creditors may accept significantly less than the full amount owed | Creditors receive a dividend based on asset realisations, often less than restructuring |
| ATO Debt | ATO participates in the creditor vote and can accept reduced repayment | ATO ranks as an unsecured creditor and receives whatever the asset pool allows |
| Personal Liability Risk | Reduced when the process is managed correctly and promptly | Director liability for insolvent trading is investigated by the liquidator |
| Timeframe | Approximately 35-40 business days for plan approval | Several months to years, depending on complexity |
| Public Visibility | ASIC records the appointment; reverts to “registered” on completion | Company deregistered; permanent public record |
| Who Initiates | Directors | Directors or creditors |
Why Partner with BCR Advisory for Your SBR?
Registered Liquidators, Fully Authorised to Act
Under section 456B(1) of the Corporations Act 2001, only an ASIC-registered liquidator can act as a Small Business Restructuring Practitioner. BCR Advisory’s principals conduct appointments that are fully authorised, properly regulated, and legally sound.
Leading SBR Firm by Appointment Volume
BCR Advisory has handled SBR appointments across a wide range of industries, from construction and trade services to finance, hospitality, and professional services.
100+ Years of Combined Experience
Our team brings over a century of collective experience across insolvency, restructuring, and corporate recovery. BCR Advisory’s principals have held senior roles at BDO, PKF, and Ferrier Hodgson.
A Balanced Approach
BCR Advisory supports business owners and directors through complex corporate transitions. We focus on achieving balanced, transparent outcomes for both directors and creditors, managing the process with professional care and absolute discretion.
Specialists in ATO Debt Negotiation
BCR Advisory has extensive experience developing restructuring plans that present a compelling case to the ATO, negotiating creditor outcomes that allow businesses to emerge with a manageable path forward.
When Debt Nearly Closed the Doors
A Melbourne Plumbing Business Restructures $994,465 in Creditor Debt
A Melbourne-based plumbing company, incorporated in 2008 and servicing large-scale construction projects across Victoria, found itself in serious financial difficulty. A combination of COVID-19-related payment delays, rising wages and inflation, mounting ATO debt due to ongoing liquidity shortfalls, and legal costs from supplier disputes had pushed the business to the breaking point. Total creditor debt included in the SBR plan amounted to $994,465, with the vast majority owed to the ATO.
BCR Advisory was appointed as the Small Business Restructuring Practitioner. Director John Morgan worked closely with the company’s director to assess whether the business had genuine ongoing viability. The assessment confirmed it did.
- Managed all creditor communications
- Developed a tailored repayment strategy
- Prepared a structured proposal demonstrating the SBR plan would deliver a better outcome for creditors than liquidation
Creditors accepted the SBR plan. The company director personally contributed $400,000 to the restructuring practitioner’s account within 2 months of the plan being accepted, representing approximately a 60% reduction in the original debt. Staff retained their jobs, supply chain relationships were preserved, and the director regained full control of operations with a clear and manageable path forward.
“This case highlights the power of the Small Business Restructure (SBR) Plan in offering a structured and manageable solution for businesses, even those in traditionally essential sectors like plumbing. With a clear plan in place, the company is well-positioned to overcome its liquidity issues and continue operating successfully.”John Morgan, Director, BCR Advisory
Payment Plan Option Available
The director contribution does not always need to be paid upfront. In some Small Business Restructuring matters, the agreed contribution may be paid through a structured payment plan over 24 months.
This can make the restructuring process more manageable while giving the business time to continue trading and rebuild cash flow.
Resources for Directors
If you’re navigating financial pressure in your business, these BCR Advisory resources are worth reading alongside this guide.
Survival Tips for Insolvent Businesses (2025)
Practical steps directors can take to protect their business and manage creditor pressure.
Read MoreRestructuring to Save Jobs
How the SBR process protects employees and preserves employment during financial recovery.
Read MoreRestructuring to Protect Jobs
A closer look at how restructuring outcomes differ from liquidation when it comes to your workforce.
Read MoreCorporate Recovery Plans (2025)
An overview of formal and informal options available to directors seeking a structured recovery.
Read MoreFrequently Asked Questions About Small Business Restructuring
Both are formal insolvency processes, but they produce very different outcomes. In voluntary administration, an external administrator takes control of the company and investigates all available options, while the director loses day-to-day control during this period.
Small Business Restructuring, by contrast, was specifically designed to keep the director in control throughout. The company continues trading, and the restructuring practitioner’s role is to help develop and submit a debt repayment plan to creditors.
Yes. Because the director retains control of the business during the SBR process, the company continues to operate normally.
If the majority of creditors (by value) vote against the plan, the restructuring practitioner’s appointment ends. At that point, the directors will need to consider alternatives, which may include voluntary administration, creditors’ voluntary liquidation, or a revised proposal.
Directors who continue to incur debts while knowingly insolvent can be found personally liable for insolvent trading under the Corporations Act 2001.
By appointing an SBRP and initiating a formal process, directors demonstrate that they are taking active steps to address the insolvency, which is relevant to safe harbour protections and any future investigation. BCR Advisory will advise you on your personal exposure as part of the initial assessment.
The ATO is treated as a creditor in the SBR process and participates in the creditor vote like any other creditor. It is not required to accept the plan, but if a majority of creditors by value vote in favour, the plan is binding on all creditors, including the ATO.
The core statutory timeframes are fixed: the restructuring proposal period runs for 20 business days, and the creditor voting period runs for 15 business days.
The cost of the SBR process depends on the complexity of the company’s affairs and the composition of its creditors.
According to ASIC REP 810, the median practitioner remuneration for SBR engagements remained stable at approximately $21,998 across the 2022–24 review period.
BCR Advisory provides a clear fee estimate at the initial consultation. Call us on 02 9128 3838 or contact us online to discuss your situation.
The sooner you act, the more options you have.
BCR Advisory offers a free, confidential initial assessment for business owners and directors across Sydney, Brisbane, Adelaide, and Cairns.
We’ll tell you whether your business is eligible for the SBR process, what the likely outcomes are, and what the next steps look like.
Call us now
02 9128 3838Speak directly with a senior adviser — no obligation, strictly confidential.
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