Small Business Restructuring Surge Helps Keep Struggling Companies Afloat
The Australian Securities and Investments Commission (ASIC) has released its latest findings on the growing use of Small Business Restructuring (SBR) as a vital tool for companies under financial strain. The Review of Small Business Restructuring Process: 2022–24 Report (REP 810) highlights how this streamlined insolvency framework is helping more small businesses remain viable while managing their debts.
Between July 2022 and December 2024, there were 3,388 SBR appointments—an exponential rise from just 82 in the previous review period. This surge signals a strong uptake in the use of SBRs, particularly in the construction (27%) and accommodation and food services (23%) sectors. Projections for the 2024–25 period suggest this growth will continue, with appointments expected to reach around 3,000.
The SBR process allows directors to remain in control of their companies while working with a registered liquidator to propose and implement a restructuring plan. Of the appointments made during the review period, 2,820 resulted in approved restructuring plans. ASIC Commissioner Kate O’Rourke noted the regime is beginning to achieve its policy goals of reducing complexity and costs in insolvency proceedings while improving survival outcomes for small businesses.
To date, more than $101 million has been returned to unsecured creditors through SBR plans, with the Australian Taxation Office receiving 87% (or $88 million) of those funds.
Click HERE to access the 'Review of Small Business Restructuring Process: 2022–24 Report'
Shaw Gidley Leading the Way in SBR Success
Shaw Gidley has achieved an impressive 96% success rate in Small Business Restructures undertaken to date. This exceptional track record reflects our firm's deep expertise and client-focused approach, helping businesses not only survive financial distress but emerge stronger. With the SBR regime becoming a key part of the small business turnaround toolkit, Shaw Gidley continues to demonstrate what’s possible when restructuring is handled with experience, precision, and care.
If you, or any of your clients, would like to discuss the potential benefits of undertaking a Small Business Restructure, please contact our Newcastle office on (02) 4908 4444 or Port Macquarie on (02) 6580 0400.
