Corporate Restructuring Trends

The restructuring market is in a period of sustained activity, driven by ATO action, interest rate pressure and sector-specific headwinds.

Restructuring activity across large SMEs and ASX-listed companies has remained elevated through 2025 and into 2026. The drivers vary by sector — ATO debt pressure across construction, margin compression in retail, and energy cost exposure in manufacturing — but the underlying theme is persistent.

A noticeable shift has been the earlier engagement of restructuring advisers. Directors are increasingly seeking options assessments before reaching the point where formal appointments become the only realistic path.

Safe harbour and small business restructuring have both become mainstream tools, complementing voluntary administration. The choice between them turns on eligibility, debt profile and the nature of the desired outcome.

For directors, the key message remains: early engagement dramatically expands the options available. Waiting until enforcement action is underway reduces the realistic outcomes and increases personal exposure.

This publication provides general information only and does not constitute legal, tax or financial advice. Readers should obtain specific advice before acting on any information contained in this article.