Can You Use SBR If You Are Already in a Payment Plan with the ATO?
Yes, you can use a Small Business Restructure (SBR) even if you're already in a payment plan with the ATO — and in many cases, it may be a smarter option.
Using SBR While on an ATO Payment Plan
If your business is currently in a payment plan but struggling to keep up with repayments or if the total debt is still growing, you may benefit more from the SBR process.
What’s the difference?
When Should You Switch from a Payment Plan to SBR?
You should consider switching to an SBR if:
You're defaulting on your payment plan or it’s unaffordable
Your ATO debt is over $80,000
You're receiving final warning or enforcement letters
You want a formal process to resolve tax debt and protect your business
Important: Eligibility for SBR
You must meet the following criteria to access SBR:
Be an incorporated entity (Pty Ltd company)
Owe less than $1 million in total debts (including ATO, suppliers, etc.)
All tax lodgements must be up to date
Not have used SBR in the past 7 years
Next Steps
If you’re in a payment plan and unsure whether SBR is a better path:
Review your current payment plan – is it working?
Speak with a Small Business Restructuring Practitioner (SBRP) – only a registered practitioner can initiate the process.
Act early – before DPNs or legal action escalate the situation.
References
ATO – Payment Plans
Corporations Act 2001 – Part 5.3B: Small Business Restructuring
