Preparing for a Small Business Restructure (SBR)
Is your company struggling with debt and thinking about a small business restructure? A restructure can only go ahead if the company’s tax lodgements are up to date and employee entitlements are paid. UV TAX gets your books, lodgements and financial information ready – and keeps you compliant afterwards – working alongside your restructuring practitioner.
✔ Registered tax agent✔ Fast lodgement catch-up✔ Confidential
ℹ️ Please note: UV TAX does not act as a small business restructuring practitioner. Only an ASIC-registered liquidator can be appointed to run a small business restructure. Our role is to prepare your company’s tax and financial information before, during and after the process, and to work with the practitioner you choose.
What is a small business restructure?
A small business restructure (SBR) is a formal process under the Corporations Act. It lets an eligible small company propose a restructuring plan to its creditors – usually paying back part of what it owes – while the directors stay in control of the business. A registered liquidator acts as the restructuring practitioner and puts the plan to creditors.
Is your company eligible?
- It is an incorporated company – sole traders, partnerships and individuals can’t use SBR
- Total liabilities are $1 million or less (employee entitlements are not counted)
- The directors haven’t recently used a restructure or simplified liquidation for another company (exemptions may apply)
- Employee entitlements currently due, including super, are paid
- Tax lodgements are up to date – or the company is substantially compliant
Your restructuring practitioner will confirm eligibility.
Why tax compliance makes or breaks a restructure
Lodgements must be up to date
Before a plan can be issued to creditors, all lodgements must be up to date. If they aren’t, the company must show it took reasonable steps and is substantially compliant – otherwise the process terminates.
The ATO often decides the vote
The ATO is a creditor of most companies using SBR and is often the largest. Its vote on a plan is frequently decisive.
Common reasons plans are rejected
Unrepaid director or related-entity loans, poor tax compliance history, unpaid tax, or an unfair advantage over other businesses.
Compliance after the plan
Once a plan is in place, the company must keep up with all new tax reporting and payments – or the ATO may take stronger action.
How UV TAX helps – before, during and after
Before
Catch up on overdue BAS, IAS, tax returns, STP finalisation and super guarantee charge statements.
Financials
Prepare 3 years of profit and loss statements, balance sheets and interim accounts.
Supporting info
Cash flow forecasts, director loan account reports, asset details and R&D claims for the practitioner.
After
Keep every BAS, return and super payment on time so the plan succeeds.
Information the ATO generally asks for
- 3 years of profit and loss accounts and balance sheets, plus interim financials before the practitioner’s appointment
- Details of assets at the date of appointment
- Cash flow forecasts and key assumptions
- Transaction reports for loans to directors, shareholders or related entities
- Any R&D tax incentive claims for the current year
- Changes made to management and operations to improve performance
We help prepare these so your practitioner can present the best possible plan.
Director penalties and SBR
A successful restructure does not remit a lockdown director penalty, or a standard penalty that wasn’t remitted within 21 days of the notice. Directors remain personally liable for any balance. If you have received a DPN, read our director penalty notice guide and act quickly.
Alternatives worth discussing
- An ATO payment plan if the business is viable but needs time
- Getting overdue lodgements done – estimated debts are often higher than the real amount
- Other insolvency options, which your registered liquidator or lawyer can explain
⚠️ Important – general information only. This page is a simple overview of small business restructuring as at November 2026 and is not legal, tax or insolvency advice. UV TAX is a registered tax agent – we are not registered liquidators, restructuring practitioners or lawyers, and we do not propose or administer restructuring plans. Eligibility, the restructuring process and dealings with creditors are matters for a registered liquidator acting as restructuring practitioner, and you should also obtain legal advice. Whether creditors, including the ATO, accept a plan is outside our control, and UV TAX cannot guarantee any outcome.
Considering a restructure? Get your tax in order first
Confidential help catching up lodgements and preparing financials – in person or online, Australia-wide.
0466 268 405Frequently asked questions
What is a small business restructure (SBR)?
A formal process under Part 5.3B of the Corporations Act that lets an eligible small company propose a plan to its creditors – usually paying part of its debts – while the directors stay in control of the business.
Can UV TAX run my small business restructure?
No. Only a registered liquidator can act as a small business restructuring practitioner. UV TAX is a registered tax agent – we help get your company ready and keep it compliant, and work alongside the practitioner you appoint.
Who is eligible for SBR?
Generally an incorporated company with total liabilities of $1 million or less (not counting employee entitlements), where the directors haven’t used the process for another company recently. Sole traders and individuals can’t use SBR.
Do my tax lodgements need to be up to date?
Yes. Before a plan can go to creditors, all lodgements must be up to date and employee entitlements currently due (including super) must be paid – or the company must show it is substantially compliant. If not, the process ends.
Will SBR get rid of my director penalty notice?
A successful SBR will not remit a lockdown director penalty, or a standard director penalty not remitted within 21 days of the notice. Directors remain personally liable for any balance.
Does the ATO usually vote on the plan?
The ATO is often the largest creditor, so its vote is frequently decisive. Common reasons it rejects plans include unpaid director or related-entity loans, poor tax compliance history and unpaid tax.
Related
General information current as at November 2026.