Small Business Restructuring (SBR)
Proven to reduce ATO tax debts and other business debts, average success rate of 95%
- Low cost compared to liquidation or administration
- Avoid liquidation or administration
- Negotiate favourable debt repayment terms
- Company is protected from legal action
- Improve business cash flow
- Help your employees retain their jobs
- Retain control of ordinary business operations
- High approval and success rate if eligible
Our experts featured on
Feedback from company directors about their small business restructuring experience with us
Reviews from company directors who secured a debt reduction through small business restructuring with our guidance
We secured our clients a business debt reduction of up to 80% on average
Helping
Real results for small businesses across construction, building, retail, hospitality, entertainment, publishing and many more industries
Our clients on average achieved a debt saving circa 80% with SBR
SBR proposals: Success rate of approximately 95%
In the dollar return to creditors on average*
Amount of debt slashed for small businesses in the past 12 months
An initiative by the Australian Government, the simplified debt restructuring process has helped many small businesses overcome financial stress
ato
The Australian Tax Office has shown positive signs towards SBR as it generally provides a better outcome for creditors
The Australian Tax Office (ATO) has shown positive signs towards SBR plans because it generally provides better outcomes for creditors when compared to voluntary administration or liquidation.
We are members of trusted industry bodies
Businesses we guided to develop an SBR plan put forward to creditors and approved
What is SBR?
SBR was introduced by the Federal Government in 2021, designed to help small businesses experiencing financial hardship. It helps to:
- save viable businesses
- save employment
Financial Distress Signals
Don’t ignore these critical warning signs of distress!
- Poor or no cash flow
- Can’t pay bills
- Can’t pay staff wages & super
- Loss of clients
- Disputes between business owners & directors
- Inability to borrow funds
Simple process
- Establish eligibility and appoint a SBR practitioner: You and your directors must first determine that your company is insolvent or likely to become so. Then you need to appoint a Small Business Restructuring Practitioner (SBRP).
- Restructuring plan is produced: Your SBR practitioner, in consultation with you, has 20 business days to draft a restructuring plan that your creditors will vote on (This can be extended by up to 10 business days). Once presented, your creditors then have 15 business days to accept or reject it.
- Plan implementation: If the majority of creditors – more than 50% in value – vote yes to the plan, then your restructuring plan is implemented, and your business is free of the remaining debt balance.
- SBR termination process: Usually, acceptance of the plan involves a one-off payment by your company into a fund which your SBRP then distributes to the creditors. Your admissible debts are then released. The period of the plan cannot exceed three years.
Seeking help sooner means you’ll have more options and increase your chances for a better outcome.
Start now. Check your eligibility in 60 seconds.
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WHY CHOOSE US
Why choose Jirsch Sutherland for small business restructuring?
Managed over 10% of all SBR appointments across Australia in the first 2 years of the Federal Government's introduction of SBR
Since the Federal Government introduction of the SBR regime, we have managed over 10% of all SBR appointments across Australia in the first 2 years.
This is a true testament to our decades of experience and the level of trust that small businesses and their advisers have in partnering with our restructuring professionals at Jirsch Sutherland to help them achieve excellent outcomes.
Top 10 rank by no. of appointments
SBR plan approval rate
In the dollar on debts a company saves on average*
In the dollar return to creditors on average*
TRUSTED BY INDUSTRY PROFESSIONALS
Reputable accountants, lawyers and advisors across Australia trust us to help their clients
Many business owners are referred to us by their accountants and advisors because they know the expertise and value we provide for their clients
Accountants trust us to help their small business clients
Lawyers and professional advisors
Hundreds of small business owners choose us for our empathy and results
Your case managed by senior qualified experts
Our senior experts possess immense industry knowledge and experience to get you the best results possible
SBR FAQS
Your questions answered
Your SBR practitioner, in consultation with you, has 20 business days to draft a restructuring plan that your creditors will vote on (This can be extended by up to 10 business days). Once presented, your creditors then have 15 business days to accept or reject it. While they are deciding, your business can continue to trade.
All unsecured debts that were incurred prior to your company entering restructuring are included, with the exception of employee entitlements that are not yet payable, such as leave and redundancy payments. If your company incurs debts after it enters restructuring, these debts do not form part of the plan and need to be paid off outside the plan.
Yes. The business must pay any employee entitlements which are due and payable before a
plan can be proposed to creditors.
Eligibility must satisfy these conditions:
- Total debts not exceeding $1 million
- Be insolvent or likely to become insolvent
- Employee entitlements are up to date
- Tax Office lodgements are up to date. Note you can still have money outstanding
- The company must not have previously used the small business restructuring process or the simplified liquidation process within the past 7 years
Use our Eligibility Checker
Alternative solutions might be possible such as:
- Safe Harbour
- Voluntary Administration
- Creditors Voluntary Liquidation
Best to contact one of our experts to discuss your options.
If your plan is rejected, then the restructuring process is over. While you remain in control of your company, your creditors are able to enforce their rights. Your protection from liability for insolvent trading also ends. Your options now include voluntary administration or liquidation.
The fee of the Restructuring Professional for developing the restructuring plan and liaising with Creditors about the SBRP is agreed and fixed up-front.
First you appoint a small business restructuring practitioner who needs to be a registered liquidator. They will act on your behalf during this process and ensure you are compliant with the following:
- Employee entitlements that are due have been paid, excluding leave and other entitlements not currently due to be paid.
- Tax lodgements are up to date.
