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Small Business Restructuring

A Simplified Turnaround Option for Small Businesses

Small Business Restructuring (SBR) is a streamlined insolvency process designed to help eligible small companies restructure their debts while remaining in control of day to day operations. It was introduced under the Corporations Act to give viable small businesses a cost effective alternative to voluntary administration.

At Equinox Restructuring & Insolvency, we work with directors to prepare, propose and manage restructuring plans that allow businesses to reduce debt and return to stability without formal liquidation.

What Is Small Business Restructuring?

Small Business Restructuring enables directors to appoint a Registered Restructuring Practitioner (such as Equinox Restructuring & Insolvency) who will:

  • Assist in preparing a formal Restructuring Plan
  • Notify creditors
  • Certify the company’s eligibility
  • Oversee creditor voting on the plan
The company retains control throughout the process and the plan becomes binding if accepted by a majority of creditors by value.

Eligibility Criteria

To access SBR, your company must:
  • Have total liabilities less than $1 million
  • Be insolvent or likely to become insolvent
  • Be up to date with ATO lodgements
  • Have paid all employee entitlements (including superannuation)
We can help you assess eligibility and prepare supporting documentation.

What Is the Small Business Restructuring Process?

Unlike other formal insolvency procedures, SBR allows directors to remain in control of the business throughout the process while a registered restructuring practitioner (similar to a liquidator) oversees the plan and advises on its viability.

Once the plan is developed, it is presented to creditors for a vote. If approved by a majority in value, the plan becomes binding on all unsecured creditors. The company continues to trade and repay debts according to the agreed terms.

The Timeline

The SBR process follows a strict and efficient timeline:
  • Day 0 – Directors appoint a registered restructuring practitioner
  • Within 5 business days – Practitioner confirms eligibility and notifies creditors
  • Within 20 business days – Company prepares and submits a restructuring plan
  • Day 20–25 – Plan is sent to creditors, along with a declaration from directors and the practitioner’s report
  • Within 15 business days of receipt – Creditors vote to accept or reject the plan
If accepted, the plan is implemented under the practitioner’s supervision and the company continues operating with reduced debt obligations.

Key Benefits of Small Business Restructuring

  • Directors remain in control
  • Lower cost than voluntary administration
  • Protection from unsecured creditor claims during the process
  • Restructure debts over time while continuing to trade
  • No need to appoint an external administrator unless the plan fails
SBR is especially helpful for businesses impacted by economic shifts, market disruptions, or short term cash flow issues.

Is Small Business Restructuring Right for You?

Consider SBR if your company:
  • Has under $1 million in liabilities
  • Has a viable business model but temporary debt issues
  • Wants to avoid liquidation or voluntary administration
  • Needs formal protection while negotiating with creditors
  • Better returns for creditors and survival prospects for the business
If your business is otherwise healthy but burdened by unmanageable debt, SBR may be the solution.

Why Choose Equinox Restructuring & Insolvency?

We are experts in small business restructuring solutions and provide:
  • Deep understanding of the SBR framework
  • Guidance on plan preparation and strategy
  • Liaising with the ATO and key creditors
  • Transparent, fixed fee structures
  • A respectful, non-judgmental approach
  • SBR training
Our team will work closely with you to ensure your plan is fair, compliant and designed for success.

Let’s Restructure With Confidence

If your small business is under pressure, don’t wait for things to worsen.

We can help you assess your options and build a plan for recovery.

Click here to arrange a consultation and receive business restructure advice from our Perth office.

FAQ’s

Frequently Asked Questions

Can my business keep trading during SBR?
Yes. Directors stay in control throughout the process.
No public notice is required. Only creditors are notified.
You may explore voluntary administration or liquidation, but we help you prepare a realistic plan to gain support.
Most unsecured debts can be included. Secured creditors and employee entitlements are generally excluded.
Companies restructure to address financial pressure while giving the business an opportunity to continue operating. In many cases, restructuring helps improve cash flow, reduce debt obligations and provide a more stable foundation for future trading without immediately proceeding to liquidation.
Yes. small business restructuring may assist businesses struggling with ATO debt by allowing eligible companies to propose a structured repayment plan to creditors, including the Australian Taxation Office. However, the company must meet specific eligibility requirements and tax obligations must remain up to date throughout the process.
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