Companies that have ATO debts under $1 Million can possibly qualify for a Small Business Restructure.Small Business Restructuring (SBR) is a simple process under the corporations law for a company to restructure its debts by proposing and agreeing a Plan with its creditors. It allows small businesses to restructure while the directors remain in control.
What is a Small Business Restructure?
A Small Business Restructure is an ATO-led initiative that allows businesses to reduce debts and create a roadmap back to success in only 35 business days.
The Small Business Restructure Process (SBRP) is a government – legislated option for small businesses in Australia that are struggling with cash flow. It allows business owners to appoint a Small Business Restructuring Practitioner to develop a restructuring plan approved by the ATO and other creditors.
The plan involves debt reduction and other other measures so you can get your business back on track and keep trading. The benefit of an SBR is that it operates as a debtor in possession model where the director remains in control of the day to day running of the business and control of all bank accounts whilst going through the SBR process with their practitioner.
