Small business restructuring (SBR)
Contents
What is small business restructuring (SBR)?
Small business restructuring (SBR) is a streamlined insolvency process introduced by the Australian Government in 2021. It’s designed specifically for eligible small businesses facing financial difficulties, allowing them to work with a registered restructuring practitioner to create a debt repayment plan while remaining in control of day-to-day operations.
Unlike liquidation, Small business restructuring (SBR) gives business owners the chance to negotiate with creditors, protect their business, and improve their chances of recovery. To be eligible, a business must have total liabilities of less than $1 million and be up to date with employee entitlements and tax lodgements.
SBR has become increasingly popular as more businesses seek early intervention strategies to deal with rising costs, ATO debt, and post-COVID pressures – especially in high-impact sectors like hospitality and construction.
Key benefits
- Business continues trading while restructuring
- Simplified process and lower costs compared to traditional insolvency options
- Greater control for business owners
- Opportunity to avoid liquidation and preserve jobs
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