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Small business restructuring practitioner: who they are and what they check.

A small business restructuring practitioner is a registered liquidator who helps an eligible company put a restructuring plan to its creditors. Debt Negotiators isn’t a practitioner. We work with a panel of registered small business restructuring practitioners, and help directors look at where they stand before anyone is appointed.
Check your business optionsCall 1300 351 008
5 quick questions for company directors and business owners. Debt Negotiators is a fee-based service.
Good to know
Only a person registered with ASIC as a liquidator can act as a restructuring practitioner
Eligibility is tested on the day the practitioner is appointed
Once made, the appointment can’t be revoked
Debt Negotiators isn’t a practitioner, liquidator or administrator

What they check →

LicensedAustralian Credit Licence 390820
Registered with AFSADebt agreement administrator 1403
Since 2009Bankstown-based team
Real reviewsOn ProductReview.com.au
The basics

What does a restructuring practitioner do?

In small business restructuring, the directors keep running the company. The practitioner doesn’t take control of day-to-day affairs. They act as the company’s agent, advise on the restructuring and help the directors prepare a plan for creditors.

Before the plan goes to creditors, the practitioner makes a declaration. It says whether they believe, on reasonable grounds, that the eligibility criteria are met and that the company is likely to be able to keep up with the plan.

Only a person registered with ASIC as a liquidator can take the role. Some registered liquidators are registered to act only as restructuring practitioners.

The practitioner’s role
Advises the company about the restructuring
Helps the directors prepare the plan and proposal statement
Gives creditors a declaration about the plan
Consents, or not, to dealings outside the ordinary course of business
Can end the restructuring if the criteria aren’t met
Once a plan is accepted, receives the company’s payments and pays creditors
Eligibility

What the practitioner checks

Eligibility criteria apply, and the practitioner has to be satisfied they’re met. These are the main ones, and where directors often get caught out.
On the day of appointment
The business is run through a company, not a sole trader or partnership
Total liabilities don’t exceed $1 million
The board has resolved that the company is insolvent or likely to become insolvent
No current director, or director in the past 12 months, has been a director of another company that used SBR or simplified liquidation in the past 7 years, with limited exceptions
Before a plan goes to creditors
Employee entitlements that are due, including super, must be paid
Tax returns and statements must be lodged. The tax itself doesn’t have to be paid
If these aren’t met, or substantially met, a plan can’t be proposed
The company must be likely to afford the plan as well as its running costs
The $1 million figure isn’t simply the debts going into the plan. The practitioner works out which liabilities count.
How we help

How it works with Debt Negotiators

1

Answer 5 quick questions
The business structure, roughly what’s owed, any notices, lodgements and any current payment plan. Start here.
2

We look at the numbers first
Roughly what the company owes, lodgements, employee entitlements and any director penalty notice dates, so you know whether SBR looks worth exploring.
3

We work with a registered practitioner
Where SBR looks worth exploring, we work with a practitioner from our panel of registered small business restructuring practitioners. They confirm eligibility and decide whether to accept the appointment. We work with a panel of registered practitioners, and may receive a referral payment or fees for pre-insolvency work. We’ll tell you about any payment before you decide.
4

The directors decide
Only the board can appoint a practitioner. We keep helping with the wider debt position, including any personal exposure.
Before an appointment is made
The appointment can’t be revoked, and creditors can’t vote to replace the practitioner
The company register shows the company is in external administration
If creditors don’t accept the plan, the restructuring ends
It won’t remit a lockdown director penalty
Related options

Other business tax debt pages

Small business restructuring
How the plan, the creditor vote and the timeline work.
Good to know: eligibility criteria apply.

How SBR works →

Director penalty notices
What the 21 days mean, and the difference between lockdown and non-lockdown notices.
Good to know: appointing a practitioner within the 21 days only remits a non-lockdown penalty.

How DPNs work →

ATO payment arrangements
A payment plan the business can keep up with, based on its cash flow and lodgements.
Good to know: interest can keep building, and the plan can be cancelled if payments fall behind.

Business tax debt options →

Restructuring practitioner questions

What is a small business restructuring practitioner?

A registered liquidator who advises an eligible company on small business restructuring, helps the directors prepare a plan, and gives creditors a declaration about it. The directors stay in control of the business.

Who can act as a restructuring practitioner?

Only a person registered with ASIC as a liquidator. Some are registered to act only as restructuring practitioners.

Is Debt Negotiators a small business restructuring practitioner?

No. Debt Negotiators isn’t a registered liquidator, administrator or restructuring practitioner. We help directors look at where they stand, and we work with a panel of registered small business restructuring practitioners where SBR looks worth exploring. If we refer your company to one, we may receive a referral payment or fees for pre-insolvency work, and we’ll tell you about any payment before you decide.

Is my business eligible for small business restructuring?

Eligibility criteria apply, and the practitioner confirms them. They include total liabilities of no more than $1 million on the day of appointment, no recent SBR or simplified liquidation, and employee entitlements and tax lodgements up to date before a plan is proposed.

Does the practitioner take over my business?

No. The directors keep running the business. The practitioner’s consent is needed for dealings outside the ordinary course of business, such as selling part of the business.

What happens after the practitioner is appointed?

The plan is usually prepared within 20 business days. Creditors then usually have 15 business days to vote, and the plan is accepted if a majority by value of those who respond vote for it.

Can a sole trader use a restructuring practitioner?

No. Small business restructuring is only for companies. A sole trader’s business debt is personal, so other options, such as informal arrangements or a debt agreement, may apply.

Look at the numbers before an appointment

Answer 5 quick questions about the business, then a specialist calls to go through whether restructuring looks worth exploring.
Check your business optionsCall 1300 351 008
Debt Negotiators is a fee-based service. The information on this page is general and doesn’t take your circumstances into account. Outcomes depend on your situation, and no outcome is guaranteed. ACL 390820 · AFSA RDAA 1403.
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