Small Business Restructuring
(SBR)

Small Business Restructuring (SBR) is a formal insolvency process designed for eligible small companies experiencing financial distress. Introduced as part of Australia’s insolvency reform, it allows businesses to restructure their debts while continuing to trade under the control of their directors, supported by a licensed Restructuring Practitioner.

SBR provides an alternative to liquidation or voluntary administration that is quicker, more affordable, and less disruptive to business operations. It gives the company an opportunity to present a restructuring plan to creditors, outlining how its obligations will be met over a maximum of three years.

To be eligible for SBR, a company must:

  • Have total liabilities under $1 million (excluding employee entitlements),

  • Be up to date with all ATO lodgements,

  • Have paid all employee entitlements (including superannuation) before issuing a plan,

  • Not have used SBR or simplified liquidation in the past 7 years,

  • Operate as a company or trust with a corporate trustee (not a sole trader or partnership).

The process takes up to 35 business days and involves three key phases:

Phase 1 – Proposal Development (Up to 20 Business Days)

  • The directors appoint a Restructuring Practitioner (RP), who confirms eligibility.

  • Creditors are notified of the commencement of the SBR.

  • The company continues to trade in the ordinary course under director control, with oversight from the RP.

  • A restructuring plan is prepared by the directors, certified by the RP, and includes a schedule of debts.

Phase 2 – Creditor Voting (Up to 15 Business Days)

  • Creditors receive the plan and vote on whether to accept it. For approval, a majority in value of unrelated creditors who vote must agree.

  • Related-party creditors cannot vote, ensuring fairness.

Phase 3 – Implementation (Up to 3 Years)

  • If approved, the plan is implemented under RP supervision. The company makes payments over the agreed period.

  • ATO debts are crystallised and cease to accrue interest.

  • If the plan is rejected, the company may consider liquidation or other options.

Benefits of the SBR process include:

  • Directors retain operational control throughout the process,

  • Relief from creditor pressure and legal actions,

  • Reduced exposure to insolvent trading liability,

  • A structured and affordable path to financial recovery,

  • Preservation of business value and continuity.

Helios Advisory supports eligible small businesses through each stage, providing practical advice and compliant execution that enables business owners to regain control and implement a sustainable turnaround strategy.