How Long Does the Small Business Restructure Process Take?
If your company is facing financial stress or ATO debt, you may be considering a Small Business Restructure (SBR) as a solution. But how long does the process actually take — and how quickly can you get relief?
Here’s a breakdown of the SBR timeline and what to expect at each stage.
What Is a Small Business Restructure?
The Small Business Restructuring (SBR) process, introduced under Part 5.3B of the Corporations Act 2001, allows eligible companies with debts under $1 million to formally restructure their debt with creditor approval — without appointing an external administrator to take over day-to-day control.
It’s designed to help viable businesses reduce debt and avoid liquidation.
Overview of the SBR Process
The Small Business Restructuring Process was introduced in January 2021 under Part 5.3B of the Corporations Act 2001. It’s a simplified form of restructuring designed for eligible small businesses with debts under $1 million, enabling directors to retain control while working with a registered restructuring practitioner (RP) to propose a plan to creditors.
Typical Timeline of an SBR
Note: The RP can request an extension of up to 10 business days to develop the plan, making the maximum period 45 business days (~9 weeks), but this is rare.
Summary of Key Timeframes
Initial setup & documentation: ~3–5 days
Plan development & financial analysis: ~2–3 weeks
Creditor voting & plan decision: 3 weeks (including proposal delivery + 15 business day vote window)
Total estimated duration: 5–7 weeks from start to finish
What Can Delay the Process?
While the SBR is streamlined, delays can occur due to:
Incomplete or inaccurate financial records
Difficulty contacting creditors
Disagreements among directors
Needing legal or accounting advice mid-process
Working with an experienced RP and having up-to-date financials can minimise these delays.
When Does the Plan Begin?
If approved, the plan becomes binding on all unsecured creditors and begins immediately after the creditor voting period ends.
Typical payment terms under SBR plans range from:
3 to 24 months, depending on company cash flow
Can include lump sums, instalments, or milestones
Can You Start Sooner?
Yes — you can prepare your financials and consult with an RP in advance to streamline the process. Pre-engagement work can shorten the active timeline significantly.
Conclusion
The Small Business Restructure process generally takes 5 to 7 weeks from start to finish, with some flexibility depending on business complexity. Given the time sensitivity of ATO debt, director penalty notices (DPNs), or cash flow stress, starting early can make a significant difference.
References
Corporations Act 2001, Part 5.3B – Small Business Restructuring
Australian Government Treasury: Insolvency reforms to support small business
ATO: Support for businesses with tax debt
