When the ATO rejects your payment plan, you still have options

Many business owners feel stuck when the ATO refuses a repayment plan, but it is not the end of the road. There are still structured, regulated solutions available that can reduce debt, protect assets and satisfy creditor obligations.

Option 1: Small Business Restructure (SBR)

The Small Business Restructure process allows eligible companies to work with a regulated restructuring firm to propose a repayment or debt compromise plan. If the ATO supports the proposal, the debt may be reduced or repaid over time. This process is designed for viable businesses that have fallen behind but can continue trading with proper financial management.

Option 2: Voluntary Administration (VA)

For businesses that do not qualify for an SBR, Voluntary Administration may be the next step. Under VA, a regulated administrator works with the director to propose a plan that demonstrates a better outcome for creditors than liquidation. If accepted, the ATO often agrees to partial debt forgiveness or compromise as part of the resolution plan.

Why professional help matters

BDK Risk Management works with a regulated restructuring firm. Only a firm like this is able to advise on these options. Your accountant or advisor should connect you with us as a first step in this process.

Key takeaway

If your business can no longer manage ATO debts, do not wait until enforcement action begins. There are still options that protect both the business and its directors.