How to Choose the Right Restructuring Practitioner for Your Business
When your business is facing serious financial pressure, choosing the right restructuring practitioner can mean the difference between recovery and collapse. Under the Small Business Restructure (SBR) process, directors remain in control of the company, but a registered restructuring practitioner must guide and oversee the restructure.
In this guide, we’ll explore what a restructuring practitioner does, how to evaluate your options, and the key factors to consider before appointing one.
What Is a Restructuring Practitioner?
A restructuring practitioner (RP) is a licensed insolvency professional approved by the Australian Securities and Investments Commission (ASIC). Their job is to:
Assess the company’s eligibility for SBR
Work with directors to draft a restructuring plan
Investigate the company’s affairs
Present the plan to creditors
Administer the plan if approved
An RP is essential to the legal framework of a small business restructure. Without one, you cannot access the benefits of the SBR regime — such as pausing legal action and negotiating a formal debt reduction with the ATO.
1. Choose Someone With Experience in Small Business
Not all registered practitioners specialise in small businesses. Some are more focused on large corporate administrations or liquidations.
Look for an RP who:
Has hands-on experience with SBRs or SME insolvency
Understands ATO tax debt and government-backed programs
Has a track record of successful restructures in your industry
2. Look for Clear Communication & Accessibility
You’ll be working closely with your practitioner during the 35–40 day SBR process. It’s critical to choose someone who:
Explains things clearly
Responds quickly to questions
Provides upfront information about timelines and costs
Avoid firms that feel impersonal, overly technical, or hard to get a straight answer from.
3. Be Clear About Fees
Restructuring practitioners typically charge a fixed fee for an SBR proposal, which can range between $10,000–$20,000, depending on the complexity of the business.
Before engaging an RP, make sure you:
Receive a transparent quote
Understand what’s included (e.g. creditor correspondence, ASIC filings)
Know whether payment plans are available
Beware of practitioners who are vague about pricing or try to overcomplicate things.
4. Verify ASIC Registration
Always confirm your practitioner is officially registered with ASIC. You can search ASIC’s Register of Liquidators and Restructuring Practitioners here.
Only registered practitioners can legally administer the SBR process.
5. Find a Practitioner With Advisory Support
Some practitioners are part of firms that provide strategic advisory services alongside formal restructuring. This can be a major advantage if you’re:
Looking to pivot your business model
Need help with cash flow forecasting
Want to rebuild your business post-restructure
You don’t just want someone to file forms — you want someone who helps your business thrive again.
Key Questions to Ask a Restructuring Practitioner
Before making your decision, ask:
How many SBRs have you completed?
What’s your experience with ATO negotiations?
What industries do you work with?
What are your fees and payment terms?
Can you work with my accountant?
Final Thoughts
Choosing the right restructuring practitioner is a critical decision in your business recovery journey. You want someone experienced, transparent, and easy to work with — someone who will help you reduce debt, manage creditor expectations, and ultimately regain control of your business.
References
Treasury – Insolvency reforms to support small business
ATO – Support for businesses with tax debt
