There are two limbs to entering into SBR.
If you satisfy the eligibility criteria below, have a look at how it works practically, step-by-step here.

SBR Eligibility

Small Business Restructuring

Limb #1

Firstly, the directors of a company must have reasonable grounds to suspect that the company is insolvent or about to become insolvent and:

  1. the company must have less than $1,000,000 in debts, excluding employee entitlements; and
  2. the company has not been under restructuring or subject of a simplified liquidation process in the past 7 years; and
  3. the current and recent directors have not also been a director of a company that has been under restructuring or subject of a simplified liquidation process in the past 7 years. 
 

Limb #2

It is not necessary to satisfy the second limb immediately but if it cannot be satisfied within 20 business days of entering SBR, the effort of entering SBR will be wasted and the whole process at an end. You only get one shot. The second limb requires the company to have substantially complied with the following:

  1. paid the entitlements of employees that are due and payable which includes superannuation guarantee owing to the ATO; and
  2. given returns, notices, statements, applications or other documents as required by taxation laws (within the meaning of the Income Tax Assessment Act 1997).