Small Business Restructuring, explained
A formal process where the director keeps control while a plan is put to creditors.
The short version
Small Business Restructuring (SBR) was introduced in 2021 for smaller companies. A registered restructuring practitioner is appointed, but — unlike administration — the directors stay in control of the business while a restructuring plan is prepared.
Creditors then vote on the plan. If it is accepted, the company pays what the plan provides for, and the remaining debts covered by the plan are generally released.
Eligibility (indicative)
The company's total liabilities must be under a threshold of $1 million (with certain debts, such as employee entitlements, excluded from the calculation). Employee entitlements that are due and tax lodgements generally need to be up to date for the plan to proceed. Eligibility must always be checked against the current legislation.