Small Business Restructuring Hits New Highs

Small Business Restructuring (SBR) is on the rise, with a three-fold increase in cases just in the first half of FY25.

The latest data from ASIC shows that there were 1,611 Small Business Restructuring appointments throughout Australia between 1 July 2024 and 18 February 2025, a figure three times higher compared to the same period in FY23/24.

Construction and hospitality currently account for half of all SBRs, with 421 appointments for construction and 375 for hospitality so far in FY24/25.

The East Coast dominates appointments, with 86% of cases.

Why are so many businesses turning to Small Business Restructuring?

More Australian businesses are discovering that restructuring offers a lifeline, helping them preserve their operations, jobs, and future.

Vincents’ Restructuring & Recovery experts emphasise the importance of not waiting too late to take action. The sooner you seek assistance, the better the outcome is likely to be.

Some of the benefits of Small Business Restructuring include:

• Directors can remain in control of the business throughout the SBR process
• A higher likelihood of recovery for creditors on a portion of monies owed on debts
• The fees for the restructuring practitioner are often more budget-friendly than those associated with voluntary administration
• All employee entitlements that are due and payable must be paid

What are the key indicators for considering Small Business Restructuring?

• You are currently trading at a loss, or you have witnessed continued losses over various periods
• Statutory creditors are not being paid on time ie., State and Commonwealth taxes such as GST, payroll tax and land tax; employee superannuation, wages and/or leave entitlements
• Creditors are being paid past contract / agreed / normal industry terms
• Suppliers placing you on a Cash on Delivery arrangement or demanding special payments before resuming supply
• Cheques have been returned dishonoured or EFT’s have ‘bounced’
• Cheques are being issued but not sent or are being post-dated
• Payment demands are being received from solicitors or judgments for unpaid debts being sought
• Accounting records are not kept up-to-date and / or are hard to find when asked
• You are experiencing change in employee status – understaffed and over – stretched
• Your overdraft limit is being exceeded on a regular basis
• You are delaying payment of rent / lease; and / or
• You have limited or no access to alternative funding / finance

If you would like more information or think you could benefit from Small Business Restructuring, contact us today to explore your options.

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