Reshaping possibilities with a Voluntary Administration

When your business runs into financial difficulties, a Voluntary Administration (VA) can give you time to think things through and make arrangements to recover. The team at AVA Advisory recognise the emotional costs of financial distress and offers you friendly, professional support through the VA process. We strive to protect your company, staff, and customers and seek every possible opportunity for a turnaround.

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What is Voluntary Administration?

Relief for businesses facing financial difficulty

Voluntary Administration (VA) is a legal insolvency proceeding that shields failing businesses against creditor action while exploring possibilities of recovery. An external administrator reviews your business’ performance and creates a comprehensive plan for managing financial hardships.

A VA provides you with the possibility of restructuring debts, retaining employees, and possibly saving your business from going out of business.

Navigating economic uncertainty with Voluntary Administration

The Australian economy continues to suffer the pandemic’s residual effects, such as high interest rates and an increase in company failures. In this sense, Voluntary Administration has become an important strategy for businesses that are looking to restructure and overcome financial problems. It provides a lifeline to companies trying to adapt and survive in this harsh environment.

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.

Features and benefits

Voluntary Administration (VA) provides a structured approach to addressing financial distress, offering several advantages:

Debt restructuring

Create an approach to securing and paying off your debts, which may decrease your overall debt and increase your chances of recovery.

Creditor protection

Gain temporary legal protections against creditor litigation during the VA process, which will allow you time to work out a potential solution.

Business continuity

Operate the business while the VA process is underway, saving jobs and maintaining customer relations.

Specialist support

Have a registered administrator guide you through the process and give you tailored, strategic recommendations.

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.

When should a business consider Voluntary Administration?

Voluntary Administration (VA) can be a valuable asset for companies facing various financial difficulties. Speak with our VA specialists if your business is experiencing any of the following:

Insolvency or in near insolvency

If your company is unable to meet its debt obligations as they fall due, indicating current or impending insolvency, VA can provide a structured approach to address these challenges.

Escalating creditor actions

When creditors threaten legal action or court-ordered liquidation, VA offers immediate protection and facilitates structured negotiations to manage creditor demands.

Persistent cash flow constraints

Ongoing difficulties in maintaining adequate cash flow to meet financial obligations can jeopardise business operations. VA grants a temporary reprieve, allowing for the development of strategies to enhance liquidity and stabilise finances.

Loss of key partners

The departure of essential customers or suppliers can significantly disrupt operations. VA assists in reassessing the business model and exploring alternative partnerships to restore stability and continuity.

Speak with our team

When should a business consider Voluntary Administration?

Voluntary Administration (VA) can be a valuable asset for companies facing various financial difficulties. Speak with our VA specialists if your business is experiencing any of the following:

Insolvency or in near insolvency

If your company is unable to meet its debt obligations as they fall due, indicating current or impending insolvency, VA can provide a structured approach to address these challenges.

Escalating creditor actions

When creditors threaten legal action or court-ordered liquidation, VA offers immediate protection and facilitates structured negotiations to manage creditor demands.

Persistent cash flow constraints

Loss of key partners

Speak with our team

Regain control with Australia's trusted Voluntary Administration specialists

Voluntary Administration provides a structured path to assess your business’s viability and explore recovery options. Our experts help stabilise operations, manage creditors, and develop a clear strategy, giving you the support needed to move forward with confidence.

Insights and expertise

Discover valuable insights into the financial health of your business and gain a deeper understanding of its performance.

Strategic planning

Learn how to develop and implement effective financial strategies to successfully manage and reduce your debt burden.

Clear communication

Develop a comprehensive roadmap outlining strategies for achieving sustainable growth and profitability.

Speak with us

When businesses need breathing space to recover

Financial pressure can feel suffocating. When your business faces mounting challenges, Voluntary Administration offers crucial breathing room to assess options and find a path forward.

55%

Of SMBs considered closure

In the past year alone, with many viable businesses simply needing structured support to navigate temporary difficulties

$50b+

In business tax debt

Creating overwhelming pressure that often requires formal intervention to manage effectively and protect business futures

65%

Of tax debt carried by small businesses

Making them particularly vulnerable to financial distress – but with timely action, many can still recover and thrive

A step-by-step guide to our Voluntary Administration process

At AVA Advisory, we provide comprehensive support throughout the Voluntary Administration process to achieve the optimal outcome for directors and owners.

Initial assessment

(1-2 days)

We conduct a thorough review of your business's financial position and discuss available options. This crucial first step helps determine the best path forward.

Appointment and protection

(Day 1)

The formal appointment of the administrator provides immediate protection from creditor actions. We take control of the business and begin stabilising operations.

First creditors' meeting

(within 8 business days)

Creditors meet to confirm the administrator's appointment and potentially form a committee of inspection. We explain the process and answer questions.

Speak with a consultant

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.

John Doe

CEO, ABC Company

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Name Surname

Position, Company name

“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.”

Rebecca Kirikino

R&B Mining

“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.”

Kristina Drage

Nabawa Valley Tavern

“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.”

Lorraine Judd

LCD Lifestyle Group

“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.”

Todd Kempton

Locale Kitchen

“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.”

Angela Murphy

Happy Film

“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.”

Nikki

Arkus Auto Services

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.

Speak with our team

FAQs

Understanding VA is essential for making informed decisions about the future of your business. Below are some of the frequently asked questions about the VA process:

What is Voluntary Administration (VA)?

A “Voluntary Administration” is a formal insolvency process that provides struggling businesses with temporary protection while exploring restructuring options. It maximises a business’s change for survival, allowing it to trade while an independent assessment of the company’s long-term viability is conducted by an external administrator.

How long does a VA last?

The initial period is usually 20-25 business days, although it can be extended with a court order or creditors' approval.

What is the difference between a VA and liquidation?

A VA aims to rescue and reorganise the company, while liquidation involves winding up the business and selling off its assets.

What happens to employees under a VA?

Employee rights are preserved during a VA, with the administrator aiming to maintain employment wherever possible.

Can we continue trading during a VA?

Yes, under the administrator’s supervision, the company can continue trading while restructuring options are assessed.

What is a Deed of Company Arrangement (DOCA)?

A DOCA is a legally binding agreement between the company and its creditors, outlining the terms under which the company will operate to maximise creditor returns.

What happens to personal guarantees?

Personal guarantees generally remain in effect, but a VA may provide an opportunity to negotiate more favourable terms.

How much does a VA cost?

Costs vary depending on the complexity of the situation, but they are typically covered by the company’s resources or trading income.

Do secured creditors have the right to intervene during a VA?

Secured creditors' rights are paused for the first 13 business days, with some exceptions.

What happens at the end of a VA?

Based on creditors’ decisions, the company may either continue under a DOCA, return to director control, or proceed to liquidation.

Need more information?

Contact our team for a confidential discussion.

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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.