Many small business owners are seeing ATO debt, BAS arrears, and late super piling up. If you need a realistic debt management strategy that doesn’t involve closing your doors or losing control, Small Business Restructuring (SBR) could be the answer.
SALEA Advisory and our targeted restructuring division, mySBR, work with directors, accountants, and lawyers facing tax debt and tight cash flow. SBR is one of the best ways for viable small businesses to manage debt, as it allows directors to retain control of the company.
The Problem: ATO Debt Is Crippling Small Businesses
Small business tax debt has climbed to $35.9 billion, representing 66.1% of all collectable ATO debt.
Meanwhile, the ATO is ramping up recovery: more DPNs, more credit reporting, and tougher action on overdue lodgements.
For many businesses, this isn’t just a tax problem; it’s a cash flow crisis that hits staff, suppliers, and the future of your business.
Ongoing debt management issues need more than a quick fix. That’s where SBR comes in.
The Solution: What Is Small Business Restructuring?
SBR is a government-designed restructuring process that helps eligible small businesses address ATO debt and supplier arrears without handing over control.
If your company owes less than $1 million, SBR is usually faster, cheaper, and less disruptive than Voluntary Administration.
During a small business restructure:
- Directors remain in charge
- The business keeps trading
- A licensed practitioner (the SBRP) handles the technical work and creditor communication
- Recovery action stops while the plan is considered
SBR is the only formal insolvency process specifically designed for small companies where directors retain day‑to‑day control while compromising debt.
Can an SBR Plan Actually Reduce What I Owe?
An SBR plan lets you make a formal offer to creditors, including the ATO. You might only pay back a portion of what you owe, either as a lump sum or in instalments.
An ASIC review of the small business restructuring process between July 2022 and December 2024 found:
- Median dividends of about 20 cents in the dollar
- The ATO approved the majority of plans
- 87% of SBR proposals were accepted in FY24
- 93% of companies that completed an SBR plan remained registered as of June 2025
Approval isn’t guaranteed, and approval rates tightened in FY25. But the ATO still supports SBR when proposals are fair, evidence-based, and prepared by a specialist.
SBR won’t clear your debt instantly, but it can make repayments more manageable for your business.
What to Expect From the SBR Process
1. Check eligibility
Our small business restructuring division at mySBR can help you find out if your business qualifies.
2. Appoint an SBR practitioner
SALEA Advisory manages the technical compliance and creditor communication.
3. Develop a realistic restructuring plan
Build your plan around actual cash flow, not best-case scenarios.
4. Creditors vote
Creditors holding most of the debt must approve the plan.
5. If approved, the debt is legally restructured
ATO and creditor enforcement stops, and you repay the agreed amount under new terms.
Throughout the process, directors remain in control — a key contrast to voluntary administration, where an external administrator takes on the day-to-day operations.
The Debt Management Strategy That Keeps You in Business
Small Business Restructuring gives you a practical, legally backed way to manage ATO debt and keep your business running.
If debt is mounting and cash flow is tight, waiting only narrows your options.
The next step is to confirm whether your company is eligible — and what kind of plan creditors (in particular, the ATO) are likely to accept.
Our Sydney-based team works with directors, accountants, and lawyers across Australia to design SBR plans that give small businesses the best shot at long-term survival.
If you or your client is facing mounting tax debt, contact SALEA Advisory for a confidential review of your debt management options.
