SBR Australia
SBR Briefing · A plain-English guide to Australia's $1M restructuring framework

A 2021 federal reform · Part 5.3B of the Corporations Act

The $1 million lifeline most Australian directors have never heard of.

If your company owes under $1 million and is struggling, the Australian government created a framework — in 2021 — that lets you settle the debt at cents in the dollar while you keep running the business. It's called Small Business Restructuring. Most companies that qualify never use it, because nobody told them it exists.

Read the explainer

The explainer

What is Small Business Restructuring?

Small Business Restructuring (SBR) is a formal debt-settlement process introduced by the Australian government in 2021. It was deliberately designed for owner-managed Pty Ltd companies under financial stress — businesses too small to afford Voluntary Administration but too important to lose. Eligibility is narrow: the company must be incorporated, have under $1 million in unsecured debt, and have employee entitlements (wages and super) up to date.

Here's the part that surprises directors: you stay in control of the business throughout. Unlike liquidation or Voluntary Administration, no administrator takes over. You keep trading, keep your title, keep your customers. A registered SBR Practitioner is appointed only to oversee the plan — not to run the company. Together you draft a Restructuring Plan that proposes to compromise the debt. Creditors (including the ATO) then vote on it. If creditors holding more than 50% of the debt value agree, the plan binds all unsecured creditors — even the ones who voted no.

In practice, debts are typically settled at around 20–30 cents in the dollar. The whole process runs about 35 business days and usually costs less than $25,000 — versus $80,000+ for Voluntary Administration. There's no "in administration" notice on your ASIC record. It's not publicly advertised. And there's an honest caveat: any personal guarantees you've signed survive SBR, and personal liability for unpaid PAYG/super under a Director Penalty Notice is a personal debt that SBR cannot touch.

A government-designed off-ramp for small companies — settle the debt, keep the business, move on.

Why directors choose it

The benefits, in plain English.

Six concrete things SBR does that liquidation and Voluntary Administration don't.

i.

You keep running the business

No administrator takes over. You keep your title, your team, your customers. The company keeps trading throughout the 35-day process.

ii.

ATO debt compromised

If the ATO is your largest creditor, SBR can bind them into a plan that settles the debt at cents in the dollar.

iii.

Faster than Voluntary Administration

~35 business days end-to-end, versus 6+ months for a typical VA-to-DOCA pathway.

iv.

Materially cheaper

Typically under $25,000 in total practitioner fees. VA routinely runs $80,000 or more.

v.

Confidential — no public stigma

Not publicly advertised the way liquidation is. No "in administration" notice on your trading.

vi.

A genuine second chance

If the business is fundamentally viable, SBR is the cleanest legal path to keep it alive.

How we help

We're strategic advisors. We get you SBR-ready and connected to the right practitioner.

Langford & Chase are not insolvency practitioners — we're strategic advisors who prepare the business and the plan, then introduce you to a registered SBR Practitioner from our trusted network.

1

Free eligibility & viability assessment

30-minute confidential call. We confirm whether SBR is the right tool — or whether a different framework fits better.

2

Pre-SBR remediation

If lodgments are behind, we map the order of operations to get eligibility-ready without triggering further ATO action.

3

Plan preparation & financial modelling

We build the Restructuring Plan, the cashflow case, and the creditor-by-creditor numbers.

4

Introduction to a registered SBR Practitioner

From our trusted network. You get the right specialist for your industry and your numbers.

5

Creditor liaison & ATO engagement

We manage the conversations so you can keep running the business.

6

Ongoing support through the 35-day vote period and beyond

You're not on your own once the plan is filed. We stay engaged until it's voted in and bedded down.

SBR vs Voluntary Administration vs Liquidation.

Three frameworks, three very different outcomes. Here's the simplified version.

Feature
SBR
Voluntary Administration
Liquidation
Debt cap
$1M unsecured
No cap
No cap
Director control
Retained
Lost (admin appointed)
Lost (liquidator appointed)
Typical timeframe
~35 business days
6+ months via DOCA
6–18 months
Typical cost
<$25,000
$80,000+
Varies
Business continues
Yes
Possibly (via DOCA)
No — wound up
Personal guarantees
Survive
Survive
Survive

The honest summary: SBR is materially cheaper and faster than VA, and far less destructive than liquidation — if you qualify. The 60-second check tells you which way you sit.

Find out if your business qualifies.

Six plain-English questions. No documents. Personalised result with a recommended next step.

Frequently asked.

How is SBR different from Voluntary Administration?

SBR is shorter (~35 days vs 6+ months), cheaper (under $25K vs $80K+), and the director keeps day-to-day control. Voluntary Administration appoints an administrator who takes over management. SBR is capped at $1M unsecured debt; VA has no cap.

Will the ATO actually agree to a plan?

The ATO is now the largest single creditor in most SBRs and votes on the same terms as everyone else. They have published policy positions on how they assess plans and routinely vote in favour where the proposal is genuinely the best return for creditors.

What if my BAS is behind?

Lodgments need to be "substantially current" at appointment. Lodgments that can be brought up to date before appointment do not disqualify you. We commonly handle this in a pre-appointment remediation phase.

Does SBR clear my personal guarantees or a DPN?

No. Personal guarantees survive any restructuring. A Director Penalty Notice is a personal debt — SBR addresses the company's debts only. We address personal exposure with a separate strategy.

Is the initial assessment free?

Yes. The 60-second qualifier and the 30-minute strategy call that follows are free and confidential. Any subsequent engagement is quoted upfront.