Briefing On Small Business Restructuring

Written by Claude Haiku 4.5 from the extracted text on 27 Feb 2026. It can miss or misread redacted and scanned pages. Check the source before relying on it.

This operational briefing document provides ATO executives with an overview of the Small Business Restructuring (SBR) process introduced on 1 January 2021 under Part 5.3B of the Corporations Act 2001. SBR is an external administration regime designed for financially distressed but viable companies to restructure debts while maintaining director control and avoiding liquidation, reducing complexity and costs compared to voluntary administration. The briefing identifies a key ATO concern: industry advisors are marketing SBR as a low-cost alternative to ATO payment plans, promoting it as enabling tax debt settlement for less than the full amount owed. The ATO characterizes this marketing as "largely puffery" but identifies it as a potential abuse risk requiring mitigation strategies. The document reflects the ATO's need to balance enabling legitimate business restructuring while preventing tax debt avoidance through SBR misuse. No quantified compliance data or revenue figures