We have previously written about the Federal Government’s new proposal for small business restructuring to avoid liquidation. This article provides an example of how this process will work in practice.
To be eligible to take advantage of the small business restructuring process, your company must have less than $1 million in debt and you must have paid or be up to date with all outstanding employee entitlements including superannuation. You must also have your tax lodgements up to date.
Summary of How the Small Business Restructuring Process Will Work
Below is a summary of how you can take advantage of the process and appoint a Small Business Restructuring Practitioner (Practitioner) to help your company avoid liquidation.
How We Can Help
We have helped numerous clients settle debts owed to creditors to avoid liquidation. This includes settling business debts including lease debts. However, sometimes debt settlement is not feasible, particularly for companies with ATO debts which generally won’t reduce debts other than by reducing interest and penalties.
One of the major benefits of small business restructuring will be that it will provide a simplified and low cost way for companies with unmanageable ATO debts to settle those and other debts without having to resort to voluntary administration.
Whilst the new provisions are a number of months away from coming into effect, there is no reason you cannot start planning a strategy now to deal with problem debts, which may include using the small business restructuring process in the future. So if you wish to discuss your circumstances, please don’t hesitate to contact Pearce & Heers Brisbane or Gold Coast office and our experienced staff will be able to assist you