A statutory demand is one of the most time-critical documents a company can receive. Our specialists help businesses understand their options and respond before the deadline — protecting the company, its directors, and its future.
Failing to respond within 21 days creates a legal presumption that your company is insolvent under the Corporations Act 2001.
The creditor can immediately apply to the court to wind up your company, potentially forcing it into liquidation.
If the company continues trading after the presumption of insolvency arises, directors risk personal liability for insolvent trading.
Once a liquidator is appointed, directors lose all control of the company and its assets immediately.
Winding-up affects employees, suppliers, and other creditors — and can have lasting reputational consequences.
Directors of companies wound up for insolvency may face disqualification from managing companies in the future.
A statutory demand is a formal written notice issued under Section 459E of the Corporations Act 2001, requiring a company to pay a debt of $4,000 or more within 21 days of service. It is commonly used by creditors — including the ATO — as a precursor to a winding-up application. If the company does not pay the debt, reach a settlement, or successfully apply to the court to have the demand set aside within the 21-day window, the creditor can apply to wind up the company on the grounds of insolvency. Acting quickly is essential — once the 21 days expire, your options become significantly limited.
Urgently reviewing the statutory demand to identify any defects, errors, or grounds to have it set aside.
Advising on whether to pay, negotiate, dispute, or apply to the court to set aside the demand.
Negotiating directly with the creditor to reach a payment arrangement or settlement before the deadline.
Filing a court application to set aside the statutory demand where there is a genuine dispute about the debt.
Assessing your eligibility for the Small Business Restructuring (SBR) program as an alternative to paying in full.
Advising directors on personal liability exposure and protective steps to take during the response process.
Any company that has received a statutory demand and needs urgent advice on how to respond within the 21-day window.
Companies that have received a statutory demand from the ATO for unpaid GST, PAYG, or income tax obligations.
Directors who need to understand their personal exposure and take protective steps before the deadline passes.
Companies that genuinely dispute the amount claimed and need to apply to the court to have the demand set aside.
Businesses that cannot pay in full but need to negotiate a settlement or explore restructuring options urgently.
Businesses already subject to a winding-up application following an expired statutory demand that need immediate intervention.
Specialists available across all states and territories with urgent response capability.
We understand the 21-day deadline is non-negotiable — we act fast to protect your business from day one.
If you can't pay in full, we assess your eligibility for the SBR program as a viable alternative to winding-up.
We advise directors on personal liability risks and the steps needed to protect themselves throughout the process.
No cost to review your statutory demand — contact us immediately and we will advise on your best options.
Get in touch as soon as you receive the demand — every day counts when you only have 21 days to respond.
We urgently review the demand for defects, errors, and the best available response strategy for your situation.
We negotiate with the creditor, apply to set aside the demand, or explore restructuring options on your behalf.
We work to resolve the demand and protect your business — before the deadline, before the damage is done.
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.