Voluntary Administration (VA) vs Liquidation vs Small Business Restructure (SBR)

VA vs Liquidation vs SBR: What’s the Difference?

SBR is the most cost-effective and least disruptive option for eligible small businesses (especially those with ATO debt under $1M).

• VA is a flexible restructuring tool but more expensive and best for companies with larger debts or complex financial positions.

• Liquidation is final – best for businesses with no viable path forward.

Which One Should You Choose?

References

• ASIC: Insolvency for Directors

• ATO: Small Business Restructure

• Corporations Act 2001 (Cth)

• ARITA: Types of Insolvency