Can Superannuation Debt Be Included in an SBR?
Yes, superannuation debt can be included in a Small Business Restructure (SBR) — but there are important eligibility conditions and timing considerations you need to be aware of.
Short Answer:
Superannuation Guarantee Charge (SGC) liabilities can be included in a restructuring plan only if the relevant super is:
Reported to the ATO, and
Not yet subject to a Director Penalty Notice (DPN) that has locked in personal liability.
What Superannuation Debts Are Eligible?
The SBR process allows inclusion of most unsecured debts, including:
PAYG withholding
GST
Income tax liabilities
Superannuation Guarantee Charge (SGC)
However, to include super debt, the business must have lodged the Superannuation Guarantee Charge Statement with the ATO before entering the restructure process.
Lodging late is okay, but non-lodgement may trigger a lockdown Director Penalty Notice, which could make directors personally liable for unpaid super — and that part of the debt won’t be eligible for compromise.
Timing Is Critical
If a Director Penalty Notice (DPN) is issued and:
SGC statements are lodged late → the DPN becomes a lockdown DPN (personal liability cannot be avoided)
SGC statements are lodged on time → the DPN is non-lockdown, and the SBR may still resolve it
To ensure super debt is eligible under SBR:
Lodge all outstanding SGC statements
Begin SBR process before DPN locks in personal liability
Best Practices
Engage a Small Business Restructuring Practitioner (SBRP) early
Lodge all BAS and SGC forms before starting
Communicate with the ATO proactively
Don’t delay — timing affects eligibility
Final Thought
Super debt can be restructured as part of an SBR — but only if reported and not personally locked-in via a DPN. Directors must act quickly and ensure compliance to keep all options open.
References:
ATO – Superannuation Guarantee Charge (SGC)
ATO – Director Penalty Notices
Corporations Act 2001 – Part 5.3B
