In short
The short answer
- SBR lets an eligible small company put a restructuring plan to its creditors while the directors keep running the business.
- It is run by a registered small business restructuring practitioner. Creditors vote on the plan.
- Australian Financial Advisory assesses whether SBR may suit your company, sets out the options in writing, and introduces a registered practitioner. We do not act as the practitioner.
Eligibility
Is a company eligible?
The SBR process has specific eligibility requirements set out in the Corporations Act. In general terms, a company needs to meet conditions such as:
- Total liabilities under the statutory threshold
- An incorporated Australian company
- Tax lodgements up to date
- Employee entitlements, including superannuation, paid
- Directors who have not used the process within the restricted period
The exact thresholds and conditions are set by legislation and are confirmed by the registered practitioner. We assess the position initially as part of the free initial consultation.
What it does
What Small Business Restructuring is designed to do
The process
How the SBR process runs
The registered practitioner runs the process. In outline:
Eligibility assessment
The eligibility criteria are checked. Australian Financial Advisory can assess this initially; the registered practitioner confirms it.
Practitioner appointed
The directors appoint a registered small business restructuring practitioner.
Plan developed and proposed
With the practitioner, a restructuring plan is prepared and put to creditors.
Creditors vote
If creditors accept the plan, it is implemented under the practitioner’s oversight. If not, the directors consider the other options.
Who runs it
Who can act as the restructuring practitioner
Only a registered small business restructuring practitioner can be appointed. Australian Financial Advisory is not a restructuring practitioner. We assess whether SBR may suit your company and introduce a registered practitioner from our network.
Not sure if SBR fits?
The AFA options page on restructuring sets out SBR alongside the other pathways. Restructure your business
Our role
What Australian Financial Advisory can and cannot do
We can
- Assess initially whether your company may meet the SBR eligibility criteria.
- Set out SBR alongside the other options in writing.
- Introduce a registered small business restructuring practitioner from our network.
We do not
- Act as the restructuring practitioner or run the process.
- Guarantee that creditors will accept a plan, or promise a particular outcome.
- Give legal or tax advice.
Common questions
Small Business Restructuring questions
Is Australian Financial Advisory a restructuring practitioner?
No. Only a registered small business restructuring practitioner can be appointed. We assess whether the process may suit your company and introduce a registered practitioner from our network.
Does Small Business Restructuring guarantee creditors will accept a plan?
No. Creditors vote on the proposed plan. Outcomes vary case by case.
Do directors stay in control during the process?
Yes. That is a defining feature of Small Business Restructuring: the directors remain in control of the business while the registered practitioner runs the process.
The information on this page is general in nature and does not constitute legal, financial, taxation, or insolvency advice. Australian Financial Advisory Pty Ltd provides assessment and advisory services only. All specialist services are referred to appropriately licensed partners. You should seek independent professional advice before acting on any information on this page.
Content last updated: 2 October 2026.
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The earlier you act, the more options may still be open. Tell us a little about your situation and we will be in touch to arrange a time.
What the free initial consultation covers
- A confidential first conversation to understand your situation and confirm whether we can help.
- The initial consultation is free. There is no cost and no obligation.
- Standard professional confidentiality applies.
- If we're not the right fit, we'll say so on that call.
- Any next step is your decision. We don't push a particular outcome.