Current State of Small Business Debt

A recent speech from ATO Deputy Commissioner Will Day indicates that while there has been a slowdown in ATO debt growth, collectable debt remains substantial at $54 billion, with small businesses accounting for $35.6 billion, being 65.9%. In response, the ATO has intensified its enforcement measures, including increased court wind-up applications and director penalty notices (DPNs).

However, the ATO supports viable restructuring, approving 91% of SBR proposals and participating in 99.5% of cases.

Evolution of SBR Implementation

SBR appointments now represent 13% of all insolvency appointments, with 1,424 businesses choosing this path as of June 2024. The process particularly benefits construction, hospitality, personal services, and retail sectors.

Key Eligibility Requirements

• Liabilities under $1 million
• Current superannuation and employee payments
• Up-to-date tax lodgements

The process typically concludes within two months, with businesses maintaining operational control throughout.

The Levi Consulting Approach

We have a comprehensive approach to guiding businesses through the SBR process, including:

• Detailed eligibility assessment and preparation
• Strategic restructuring plan development
• Expert negotiation with creditors
• Ongoing support throughout the implementation phase

For businesses considering the SBR pathway, early engagement with experienced practitioners remains crucial. Contact David Levi on 0418 602 466 for a confidential discussion about how SBR might benefit your business.