A 2021 federal reform · Part 5.3B of the Corporations Act
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.
The explainer
Think of an SBR as a government-approved deal with the ATO and your other creditors. You offer to pay back a portion of what you owe — typically 20 to 30 cents in the dollar — and if they agree, the rest is wiped.
That's it. That's the core of it.
A government-designed off-ramp for small companies — settle the debt, keep the business, move on.
SBR stands for Small Business Restructuring. The Australian government introduced it in 2021 specifically for Pty Ltd companies under $1M in unsecured debt. Personal guarantees and personal Director Penalty Notice liability survive SBR — those are separate conversations.
Why directors choose it
Six concrete things SBR does that liquidation and Voluntary Administration don't.
No administrator takes over. You keep your title, your team, your customers. The company keeps trading throughout the 35-day process.
If the ATO is your largest creditor, SBR can bind them into a plan that settles the debt at cents in the dollar.
~35 business days end-to-end, versus 6+ months for a typical VA-to-DOCA pathway.
Typically under $25,000 in total practitioner fees. VA routinely runs $80,000 or more.
Not publicly advertised the way liquidation is. No "in administration" notice on your trading.
If the business is fundamentally viable, SBR is the cleanest legal path to keep it alive.
How we help
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.
30-minute confidential call. We confirm whether SBR is the right tool — or whether a different framework fits better.
If lodgments are behind, we map the order of operations to get eligibility-ready without triggering further ATO action.
We build the Restructuring Plan, the cashflow case, and the creditor-by-creditor numbers.
From our trusted network. You get the right specialist for your industry and your numbers.
We manage the conversations so you can keep running the business.
You're not on your own once the plan is filed. We stay engaged until it's voted in and bedded down.
Three frameworks, three very different outcomes. Here's the simplified version.
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.
Six plain-English questions. No documents. Personalised result with a recommended next step.
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.
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.
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.
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.
Yes. The 60-second qualifier and the 30-minute strategy call that follows are free and confidential. Any subsequent engagement is quoted upfront.