Business restructuring involves reorganising a company's operations, finances, or structure to improve stability and long-term viability. It can help businesses facing financial distress by reducing costs, managing debts, and improving cash flow.

If your business is struggling with cash flow issues, mounting debt, missed repayments, declining profitability, or legal threats from creditors, restructuring may be the best solution. Early action increases your chances of recovery.

Restructuring focuses on saving and stabilising a business by reorganising finances and operations. Liquidation, on the other hand, involves winding up a business and selling assets to repay debts.

SBR allows eligible businesses to restructure debts while continuing to trade, giving them a chance to recover without the formal insolvency process. It helps manage creditor negotiations, improve cash flow, and regain control.

VA provides breathing space by pausing creditor actions while administrators assess the company's viability. It allows businesses to explore recovery options and develop a plan to maximise returns for creditors.

Yes, many businesses accumulated significant debt due to COVID-19 economic relief measures. A structured business restructure can help manage and address this legacy debt while ensuring ongoing viability.

The timeframe depends on the complexity of your business’s financial situation. Some restructuring processes, like Small Business Restructuring, can be completed within a few months, while larger turnarounds may take longer.

Restructuring aims to improve business sustainability, which can ultimately protect jobs and stakeholder interests. However, operational adjustments may be necessary to ensure long-term stability.

Delaying restructuring can limit your options, increase financial strain, and heighten the risk of insolvency or legal action from creditors. Seeking professional advice early can help secure the best possible outcome.

AVA Advisory provides tailored restructuring solutions, expert financial assessments, and negotiation strategies to help businesses regain stability. Our team works closely with you to develop a plan that protects your interests and supports long-term success.

SBR is a formal process designed to help viable small businesses in Australia restructure their debts and avoid liquidation. It allows eligible companies to continue trading under the guidance of a Small Business Restructuring Practitioner (SBRP) while they develop and implement a plan to repay their creditors.

SBR offers several key benefits, including reduced debt, protection from creditor actions during the restructuring period, the ability to continue trading, and expert guidance from an SBRP. It provides a structured pathway to financial recovery while minimising disruption to your business operations.

To be eligible for SBR, your business must be an incorporated company (a “Pty Ltd” company) with total liabilities (excluding employee entitlements) under $1 million. You must be up to date with your tax lodgements and have paid all due and payable employee entitlements. Both the company and its directors must not have used this process within the past seven years.

Directors choose SBR because it allows them to retain control of their business while addressing financial distress. It offers a less disruptive alternative to liquidation, providing an opportunity to restructure debt, preserve jobs, and rebuild the business.

The SBR process typically involves an initial consultation, assessment of your business's finances, development of a restructuring plan, creditor approval, and implementation of the plan. The process generally takes up to 35 business days, split into a 20-business-day proposal phase and a 15-business-day acceptance phase.

The plan must adhere to certain regulations, such as equal treatment of admissible debts and a maximum three-year term. It can be conditional on a future event, such as the sale of an asset, occurring within 10 business days of creditor acceptance.

Secured creditors are bound by the plan only to the extent they agree, but any shortfall is covered under the plan. Related creditors do not vote on the plan but receive a distribution under its terms.

The SBRP helps determine eligibility, supports the directors in developing the restructuring plan, certifies the plan for creditor voting, and manages disbursements if the plan is approved. The directors remain in control of the company's day-to-day operations.

The SBRP's remuneration involves a fixed fee for the proposal phase (determined by the directors) and a fixed percentage of recoveries from the plan (approved by creditors). Referral fees, while prohibited in other insolvency procedures, are permitted under SBR regulations.

A company undergoing SBR must publicly disclose this status. For example, "ABC Pty Ltd (restructuring practitioner appointed)."

Once fully implemented, the plan terminates, and the company is released from the debts covered by the plan. Termination can also occur due to a court order, failure of a condition precedent, an unremedied breach, or the appointment of an administrator or liquidator.

Yes, but it requires a court order, which may not be practical in many situations.

AVA Advisory offers other options, such as Voluntary Administration (VA), informal workouts with creditors, and liquidation. We can advise on the most suitable course of action based on your specific circumstances.

Your business is insolvent if you're unable to pay debts when they are due. The cash flow test is the main test to determine this. This test checks your company's finances to see if you're able to pay current and future financial commitments.

When a company enters liquidation, employees usually lose their job. Their entitlements are addressed based on your company's available assets and legal protections.

This can vary, depending on the complexity of your company's affairs. In straightforward cases, the process may only take three months. More complicated liquidations can take six months or longer. Some liquidations take up to 12 months.

Insolvent trading is when a company takes on new debt while it's insolvent. This practice is not allowed and there's a duty on directors to prevent insolvent trading. There are penalties for insolvent trading.

Corporate advisory services provide expert guidance for your business on financial, operational and strategic matters. These services are not only for businesses experiencing financial issues. They can benefit your business at any stage of your business journey.

Corporate advisory firms like AVA Advisory gives you access to a team of seasoned professionals with specialised knowledge. This breadth of expertise is difficult to get with a single in-house hire.

Our corporate advisory services are increasingly used by small and medium businesses. The majority of Australian businesses are small businesses and we believe they should have access to the advice they need to succeed.

It is a service that analyses your business's challenges and designs tailored solutions to promote long-term sustainability and growth.

By identifying root causes of issues and implementing strategic solutions, it enhances operational efficiency and profitability.

We have experience across various sectors, including manufacturing, retail, hospitality, and professional services.

Our process involves discovery, design, and deployment stages to ensure comprehensive and effective solutions.

Yes, our solutions are tailored to meet the unique needs and constraints of small and medium-sized enterprises.

The duration varies based on the complexity of the challenges but typically ranges from a few weeks to several months.

Absolutely. We collaborate closely with your team to ensure seamless integration and effective implementation of solutions.

Costs are determined based on the scope of work and level of support required, ensuring value for money.

Yes, we are equipped to provide strategic guidance and support to navigate financial difficulties effectively.

If you're facing operational inefficiencies, declining profitability, or challenges in strategic alignment, our advisory services can provide the necessary expertise to address these issues.

A Fractional CFO (Virtual CFO) is a part-time finance professional who delivers strategic financial direction and management at a fraction of the cost of a full-time position.

As an accounting professional, they provide expert advice to help your business track and manage cash flow, profitability, risk and financial planning.

A Virtual CFO offers all the strategic oversight as an internal CFO but on a flexible contract that is more affordable. 

Meetings can be held weekly, monthly or at a different time to suit your level of support. 

Forecasting is one of their key services and they will assist you in anticipating future expenses and managing cash flow. 

Absolutely. The Fractional CFO services are especially ideal for small businesses that want a high level of financial insight but can’t afford an internal CFO full-time. 

We take an in-depth look at your finances during onboarding to make sure that we’re providing the support that’s right for you. 

Yes, they deliver cash flow management, cost-saving and revenue generation tools to put your business on the right track. 

Yes, they collaborate seamlessly with your internal team to ensure cohesive and consistent financial management.

If your business requires strategic financial guidance without the cost associated with a full-time CFO, a Fractional CFO is a good option for you. 

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A DPN is a notice issued by the ATO, holding company directors personally liable for unpaid tax obligations such as PAYG withholding, GST, or superannuation. It’s a tool the ATO uses to recover outstanding debts when a company fails to comply with its tax obligations.

You may receive a DPN if your company has defaulted on its tax obligations, either by failing to pay or report PAYG withholding, GST, or superannuation liabilities on time.

Yes, former directors may still be liable if the tax obligations were due before their resignation or relate to events that occurred while they were still a director.

If you become personally liable under a DPN, the ATO can recover debts directly from your personal assets, including bank accounts, property, or wages.

While a payment plan may not absolve you of liability, the ATO is less likely to pursue individual directors if the company is actively adhering to a formal repayment arrangement.

AVA Advisory provides expert guidance on reviewing your financial position, exploring payment or restructuring options, and navigating the ATO’s processes. We work to protect your personal assets while helping you resolve company tax debts.

You have 21 days to act on a Traditional DPN. However, a Lockdown DPN imposes immediate liability, requiring prompt expert advice.

Yes, it may be possible to negotiate a payment plan or settlement with the ATO. An insolvency practitioner or debt management adviser can assist with these discussions.

Yes, unresolved DPNs can affect your credit score, making it more difficult to obtain loans or credit in the future.

The ATO can issue garnishee notices alongside or after a DPN. These notices allow the ATO to recover debts directly from your bank accounts or other sources.

The ATO can claim the entire amount of your overdue tax debt. For ongoing payments like trade debts, they typically take a percentage. Our team can help you understand exactly what this means for your business’s cashflow.

The ATO must send you a copy of the garnishee notice. However, by the time you receive it, the notice may already be affecting your accounts. This is why maintaining open communication with the ATO is crucial.

Act quickly. There’s often an opportunity to negotiate a payment plan and potentially have the garnishee notice withdrawn. However, timing is critical. The sooner you seek expert help, the more options you’ll have.

While it’s possible to challenge a garnishee notice, success is rare without expert help. The most effective approach is usually negotiation with the ATO to establish a payment plan. Our team can guide you through this process.

Safe harbour protection applies to individual company directors, not the company itself. You’ll need to meet specific requirements and actively work towards business recovery to maintain this protection.

No. Safe harbour only protects against civil liability for insolvent trading. As a director, you must still meet all other legal requirements and duties. We’ll help you understand exactly what protection safe harbour offers in your situation.

No. Unlike voluntary administration or liquidation, entering safe harbour isn’t a formal insolvency process. It’s a protection that lets you work on restructuring your business while continuing to trade.

Seek advice about safe harbour as soon as you suspect your company may be approaching insolvency. Early action gives you more options and a better chance of successful restructuring.

While Australian law doesn’t specify exact qualifications for safe harbour advisors, they should have appropriate expertise to advise on your company’s financial situation. Our team brings both technical knowledge and practical business experience to guide you through this process.