Many companies and trusts carrying significant ATO obligations don't realise there is a legitimate legal process that can reduce — or in some cases significantly cut — the amount owed. The Small Business Restructuring (SBR) program exists for exactly this situation, and it lets you keep running your business while it happens.
GST or PAYG withholding has accumulated over time and the ATO balance is now beyond what the business can repay in full.
Super contributions for employees have not been paid on time and the Superannuation Guarantee Charge (SGC) is mounting.
A payment arrangement is in place but the business is falling behind again and the ATO balance keeps growing.
The ATO has issued a statutory demand, a Director Penalty Notice, or is threatening legal action to recover the amount owed.
The ATO has issued a DPN, meaning the company's tax obligations are now being transferred to you personally as a director.
The business is still operating and generating revenue, but the ATO balance continues to grow faster than it can be repaid.
The Small Business Restructuring (SBR) program, introduced under the Corporations Act 2001, allows eligible companies to propose a restructuring plan to their creditors — including the ATO. Under this plan, the business offers to pay a portion of what it owes over an agreed timeframe, rather than the full amount. If creditors including the ATO vote to accept the plan, the remaining balance is legally written off and the company continues trading with a clean slate. The ATO regularly participates in and accepts SBR plans where the offer represents a better return than what they would receive through liquidation. For eligible businesses with total liabilities under $1 million, SBR is often the fastest and most cost-effective way to resolve an unmanageable ATO balance while keeping the business alive.
A restructuring plan can propose paying a reduced amount to the ATO — the remainder is written off upon plan acceptance.
Directors remain in control of the business throughout the entire SBR process — there is no external administrator takeover.
Once SBR commences, ATO enforcement actions including statutory demands and Director Penalty Notice recovery are paused.
A standard Director Penalty Notice can be remitted when the company enters SBR — protecting directors from personal liability.
The restructuring plan is developed within 20 business days and presented to the ATO and other creditors for a vote.
If the plan is accepted, the business continues trading and the remaining ATO balance is legally extinguished.
Incorporated businesses with total liabilities under $1 million that cannot repay their full ATO balance in the short term.
Trusts with a corporate trustee that meet the SBR eligibility criteria and are carrying an unmanageable ATO balance.
Directors who have received a standard DPN and need to enter SBR to remit the penalty before the 21-day window closes.
Those who have tried ATO payment arrangements but continue to fall behind, with the balance growing rather than shrinking.
Businesses in high-turnover industries that have accumulated GST and PAYG arrears during periods of economic disruption.
Businesses that are otherwise profitable and well-run but are being constrained by an ATO balance accumulated in harder times.
Registered SBR practitioners available across all states and territories.
We work with registered SBRPs who have direct experience negotiating ATO-inclusive restructuring plans.
Unlike other formal processes, SBR keeps you in charge of your business from start to finish.
Entering SBR can remit a standard Director Penalty Notice — protecting your personal assets from ATO recovery action.
No cost to find out if your business qualifies — we assess your situation and explain your options clearly.
We review your ATO balance, total liabilities, and business situation to confirm SBR eligibility.
A registered SBRP is appointed — ATO enforcement is paused and you continue running your business as normal.
A restructuring plan is developed within 20 business days and put to the ATO and creditors for a vote.
If accepted, you pay the agreed reduced amount and the remaining ATO balance is legally written off.
We had multiple financial pressures building up. Taking a structured approach helped us regain control and make better decisions for the business.
What stood out was the practical nature of the process. It wasn’t theoretical — it was focused on real business conditions and realistic outcomes.
Instead of reacting to problems, we were able to step back and look at the bigger picture. That shift in approach made a noticeable difference to how we managed the business.
We were dealing with ongoing cash flow pressure and needed clarity on what steps to take. The process helped us understand our position and move forward with more confidence.
Restructuring and ATO debt support is offered through MCR Partners Pty Ltd, holder of Australian Credit Licence 531570.
We work alongside a registered Small Business Restructuring Practitioner and support you through the process step by step, so you always know where things stand and what comes next.
This is a legal, transparent, and government-backed process designed to help eligible companies and trusts manage tax debt while staying in control of their business and day-to-day operations.
Any examples of savings or outcomes shown on this website are based on real client matters. Because every business is different, results will vary depending on your circumstances, eligibility, and the options available to you.
The information on this website is general in nature and is not personal financial advice. Specific guidance can only be provided after understanding your situation in detail.
We treat your privacy with care. Any details you share with us are kept private, secure, and confidential in line with the Privacy Act 1988 (Cth).
We do not sell your information or pass it around to unrelated third parties. Your information is only used to assess and assist with your enquiry, unless disclosure is required by law or authorised by you.