Our latest insights

Small business restructuring was introduced in 2021 as a response to COVID-19. It is a process designed to help distressed businesses avoid shutting down. Despite being around since then, there remains uncertainty in the market about how the process works and who is eligible.

It is important for business owners facing financial distress to understand all the options available to them. Small Business Restructuring (SBR) offers a pathway for small and medium sized Australian companies experiencing financial pressure to deal with unmanageable debt, reset operations, and continue trading through and beyond difficult times. SBRs are also a cost-effective solution to save a business compared to a liquidation shut down.

In the latest episode of Beyond the Numbers with Grant Thornton, Financial Advisory Partners John McInerney and Cameron Crichton discuss the current economic climate, what SBRs are, eligibility criteria, and how businesses have successfully turned around using this regime.

Explore 2023 Division 7A loan rates, compliance, and tax impacts.

Driven by consumer demand, Australia's food and beverage manufacturing sector has seen a rise in health-focused businesses. Despite market growth, challenges like supply disruptions persist, leading to notable insolvencies in 2023. We've observed a notable increase in interest from over 100 potential acquirers for brands aligned with healthier products. But timing is critical for struggling businesses – early intervention and strategic planning are key.

On 28 March, the ATO sent its strongest message on debt enforcement since the COVID-19 pandemic commenced, advising that it is now issuing letters to taxpayers informing them about their potential personal liability for company tax debts under the Director Penalty Notice (DPN) programme.

On 1 January 2021, a new simplified small business restructuring process will become available for small businesses.

Commencing in 2021, the Federal Government has announced a new, simplified small business restructuring process for small businesses as part of the economic relief reforms.