Simplified Liquidation: a streamlined path forward for small and medium businesses
At AVA Advisory, we understand the financial and operational challenges Small and Medium Businesses (SMBs) face. Our Simplified Liquidation service helps business owners wind up their affairs efficiently and cost-effectively, combining expert guidance with genuine empathy throughout this challenging transition.
Simplifying the end-of-business journey
Simplified Liquidation offers small to medium businesses (SMBs) a streamlined alternative to traditional liquidation. Introduced in 2021, it reduces the complexity, time and costs compared to standard Creditors’ Voluntary Liquidation.
The Simplified Liquidation process eliminates:
- creditors meetings
- extensive reporting, and
- detailed investigations
For eligible businesses with debt under $1 million, this process provides a more efficient path forward while reducing stress on business owners.
Is Simplified Liquidation the right solution for your struggling business?
The suitability of Simplified Liquidation depends on your business’s unique circumstances. Our first step is assessing eligibility. We then assess whether this option best serves the interests of business owners and stakeholders.
While Simplified Liquidation offers many benefits, it does not suit every situation. We help SMBs explore all available options to make informed decisions about their future.
Our process pillars
We concentrate on three core pillars of transformation – Improvement, Growth and Support – backed by ongoing advice and performance oversight.
In simple terms, we guide you in running your business more efficiently and sustainably. We work with you to assess the market for your product, develop a growth plan and increase earnings. We parallel these efforts by assisting with back-office management and connecting you with trusted outsourced resources and service providers.
Month-to-month, we help you transform your business and boost daily performance. As Australian businesses navigate some of the toughest operating conditions in decades, we empower you to thrive.
What are the advantages and features of Simplified Liquidation?
Simplified Liquidation balances efficient business closure with stakeholder interests. This streamlined process offers several key advantages for SMBs navigating financial challenges.
Reduced costs
Simplified Liquidation cuts traditional liquidation costs by streamlining administrative requirements and processes.
Faster resolution
The streamlined process typically concludes much more quickly than traditional liquidation, allowing business owners to move forward sooner.
Better returns
Lower administrative costs mean better returns for creditors through a single dividend distribution.
Expert support
Our Registered Liquidators guide SMBs through every stage, ensuring compliance while providing clear communication and support.
The experience and expertise you can count on
Our team has decades of experience helping companies navigate Voluntary Administration (VA). Our services have enabled many firms in all sectors to secure successful results, from a successful restructuring to favourable agreements with creditors. We have a reputation for putting practical solutions in place with empathy and compassion for the needs of business owners.
Regain control with Australia’s trusted Simplified Liquidation specialists
Simplified Liquidation offers small businesses a streamlined, cost-effective way to wind up operations. Our experts ensure a smooth, compliant process, helping you close your business with confidence and move forward.
Small business expertise
Our team brings firsthand business ownership experience, understanding both the practical and emotional challenges of business closure.
Value-focused service
We deliver expert guidance at reasonable rates, helping SMBs navigate liquidation while managing costs.
Comprehensive support
Through our partnership with Beyond Blue, we provide both professional expertise and emotional support during this challenging transition.
Why SMBs need expert support
Insolvencies are surging to record levels, reaching figures not seen since the Global Financial Crisis. Businesses across various industries are struggling with rising costs, economic uncertainty, and cash flow challenges.
of SMBs have considered closure in the past 12 months
of SMBs experience cash and liquidity challenges
of SMBs face cashflow difficulties
Your step-by-step guide to the Simplified Liquidation process
We understand business closure brings unique challenges. Our streamlined approach breaks down Simplified Liquidation into clear, manageable steps. Our team guides SMBs through each stage, providing expert support and clear communication throughout your journey.
Understanding Australian legal standards for Personal Asset Protection
We offer Personal Asset Protection advisory services that are built on a solid understanding of Australian legal standards, such as the Bankruptcy Act and the Corporations Act.
We work closely with business owners, their legal advisers, and accountants so that all asset protection steps follow the relevant laws and regulations, keeping your personal assets safe while staying within legal boundaries.
As Personal Asset Protection advisers, it’s important to us that our clients are familiar with Australian laws and regulations and ensure that personal assets are properly protected. Key considerations include:
Using trust structures to protect assets
A discretionary trust can protect assets from business obligations as trust assets don’t count as part of the estate under the Bankruptcy Act 1966 (Cth). But it is important to make sure the trust is set up in the right way and is not an illusion for the purposes of law.
Application of Personal Property Securities Act 2009 (PPSA)
The PPSA covers personal property security interests. If you register your security interests on the Personal Property Securities Register (PPSR), you are safeguarding your personal property interests against third-party claims. It is a registration that gives priority over unregistered or post-registered interests.
Following guidance from the Corporations Act 2001 (Cth)
This Act lays out the responsibility of directors. Directors who observe these obligations – namely, in good faith and in the best interests of the company – will limit their personal liability exposure. A breach can expose individual assets, so follow-through is critical.
Keeping up to date with the Taxation Administration Act 1953 (Cth)
The Act personalises company directors for taxes owed, such as missing PAYG withholdings and Superannuation Guarantee Charge (SGC) amounts. The directors need to make sure these are paid on time so that they can remain unpunished.
Understanding how the Bankruptcy Act 1966 (Cth) works
This Act explains how individual assets are handled during personal bankruptcy. Some personal assets can be held in trust, which provides a certain level of protection against creditors' claims. However, other assets that become part of the bankruptcy can go to creditors. Using asset protection plans before you run into problems is key as transactions that are made in an attempt to avoid creditors can be revoked (claw-back provisions).
Working with AVA Advisory was a game-changer for our small business. Their expertise and guidance helped us successfully restructure and stabilise our operations, paving the way for financial success. We highly recommend their services.
“AVA have been able to help guide us in terms of what we’ve needed financially. We’ve also engaged them with legal actions that we’ve wanted to prepare ourselves for.
To know we have that confidence behind us should anything go round or should we need those services is absolutely brilliant.”
“After the initial consultation with AVA, we felt that our issues were completely understood and very quickly our minds were put at ease.
We knew we needed to find a company that could actually communicate with the ATO on our behalf. An incredible amount of pressure was taken off me.”
“All of the AVA team have such great expertise and dealt with everything in so professionally. At no point did we ever feel lost or like they wouldn't be able to assist us.
We highly recommend AVA Advisory because of their expertise and dedication to getting a business where it needs to be.”
“I had massive bad debt standing over my head from our tax bill. The SBR process was painless and easy.
AVA Advisory changed everything for me. Their team did all the work – all I did was answer their questions. They were really good at following up, and communicating things in terminology I could understand.”
“AVA Advisory continue to identify any operational or financial exposure that we might have. They’ve been so good at helping us extrapolate to where we want to be, to plan financially, so that we can just really focus on being creative and marketing our business.
We feel like we are in really safe hands.”
“We went through the SBR process and negotiated our tax rate down, then came up with a plan to repay a portion of the tax that our company could afford.
AVA Advisory really showed empathy – they understood the situation and adapted it to help us. They just didn't treat us like everybody else.”
Do you need a half-yearly health check?
Our half-yearly health checks are essential for keeping your business on track. Using our diagnostic process, we reassess your position, measure the impact of transformation efforts and monitor performance changes. This allows us to stay ahead of any necessary adjustments, refining your strategy and aligning it with evolving goals.
With flexible mentoring options and check-in points, we tailor the process to fit your needs, ensuring continuous growth and improvement.
FAQs
Find answers to common questions about Simplified Liquidation.
The Australian Government introduced this process in 2021 to help SMBs affected by COVID-19. It offers a more efficient and cost-effective liquidation option for eligible businesses.
Simplified Liquidation streamlines the traditional process by:
- Removing creditors meetings
- Reducing reporting requirements
- Simplifying investigations
- Limiting which transactions can be recovered
The liquidator must provide their report within three months. After distributing any available funds to creditors, we move quickly to finalise the process and deregister the company.
Creditors receive notification of the process and have 10 business days to object. If creditors holding 25% or more of the total debt object, the process cannot proceed as a Simplified Liquidation.
No. Directors and companies cannot use Simplified Liquidation if they’ve used this process or Small Business Restructuring (SBR) within the previous 7 years.
Need more information?
Contact our team for a confidential discussion.
Meet our team
Our dedicated team of industry experts bring a wealth of knowledge and experience, from debt management and business transformation to high-level corporate advisory. Guided by integrity and trust, we are vibrant and future-focused, with a commitment to professional and financial excellence.
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Andrew is an established expert in insolvency, business restructuring and debt management with 17+ years of experience.
Art is an experienced director, helping support businesses post-insolvency become more efficient and achieve sustainable success.
Hannah is an experienced creative with over 20 years experience in brand strategy, design and user experience .
Sam has a background in administration and business solutions and works directly with our clients to achieve financial freedom.
Anastassiya is an insolvency and client advisor with experience in accounting, finance and debt management.
Nadya helps support SMBs through their insolvency process, driving success and ensuring a seamless experience.
Dhru offers empathetic support and valuable insights for businesses seeking debt management assistance.
Michael works directly with clients to learn more about their individual circumstances and connects them with specialist advice.
Alex supports clients throughout their restructuring journey by organising intake and preparing documentation.
Shai is an organised multitasker, ensuring our seamless operations, schedules and executive support.
Ellie works directly with clients to learn more about their individual circumstances and connects them with specialist advice.
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