Small Business Restructures are still available — but are harder to gain approval
Small Business Restructures (SBRs) can still assist businesses recover from ATO debt — but they’re now harder to access. Learn what’s changed and how we can improve your approval chances.
A Small Business Restructure (SBR) remains one of the most effective ways to manage tax debt and avoid insolvency — but recent changes mean they’re not as easy to obtain as they once were.
When the program began, the ATO supported the majority of SBR proposals, approving roughly nine out of ten submissions. This support was critical, as the ATO is almost always the largest creditor in these cases.
Today, approvals have become more selective. The ATO now places greater emphasis on a company’s viability, transparency, and ability to meet future tax obligations.
How SBRs Work
You must engage a registered provider to manage the process.
Together, you’ll prepare a proposal that outlines how, if not for existing debt, the business could continue trading successfully.
The plan is then submitted to creditors (including the ATO) for approval.
If the proposal is accepted, the debt may be compromised, giving the company a sustainable pathway forward.
Why ATO Support Matters
Without the ATO’s approval, an SBR is unlikely to succeed — as they’re typically the major creditor.
This makes proper preparation essential. Directors should work with their advisor or accountant to ensure all compliance obligations are met and that the plan demonstrates a clear financial recovery pathway.
How to Improve Your Chances
Be fully transparent with your Company’s financials.
Ensure all BAS and tax lodgements are up to date.
Work with an experienced, registered provider who understands ATO expectations.
An SBR can still save your business — but only if you go in fully prepared.
Need help getting your plan approved?