Small Business Restructuring appointments have risen by 161 per cent in the last nine months

Small Business Restructuring appointments are booming as the ATO cracks down on debt and more small businesses are going to the wall.

Business Reset managing director Jarvis Archer.

One of the nation’s leading Small Business Restructuring experts says appointments are booming with the latest data from the financial regulator showing they had increased by 161 per cent in the first nine months of the 2025 financial year.

Business Reset founder and managing director Jarvis Archer (illustrated) says a growing awareness of the scheme, where companies work out a restructure plan with a practitioner to keep the business going including debt repayments – usually to the ATO – was behind the explosion in numbers.

He says the surge also coincides with reports that the Australian Taxation Office is tightening its approach to repayment plans.

Archer says that despite ongoing industry scepticism about restructuring strategies, the numbers don’t lie.

“The criticism that SBRs merely delay inevitable failure is contradicted by the data,” he says.

“Less than 5 per cent of over 200 SBR proposals accepted by creditors that I overseen have been terminated before completion, highlighting the transformative potential of well-executed restructuring plans. SBRs yield better returns to creditors than liquidation.

“The ATO and other creditors typically receive more through a structured payment plan than they would through fire sales of assets. It’s a win-win when done correctly.”

Business Reset managing director Jarvis Archer.

According to the latest data from the Australian Securities and Investments Commission in the nine months to March 31 restructuring appointments have risen to 2018 compared to 773 in the corresponding period in YF24.

Across Australia in the same period 10,073 companies entered external administration or have a controller appointed compared to 7203 in the previous period - a 39.9 per cent increase.

Over the same period in Queensland there has been 1835 insolvencies compared to 1338 – a 37.1 per cent rise.

Almost half of all SBR appointments are from the construction and hospitality sectors.

Bundy anger

Bundaberg is famous for its rum but appears to prefer it without coke, judging from the latest government decision on coal miner Fox Resources’ mineral development licence application.

Since 2019, the private Australian miner has spent thousands of dollars on local consultants on exploring for coking coal near Bundaberg. It now aims to drill another five bore holes for exploration purposes under its MDL application.

However, the application has been stalled, with the Miles government declaring pre-election in September 2024 a preliminary view that it was “not in the public interest.”

Fox Resources’ hopes for a change of mind from the new Crisafulli government were dashed when Attorney-General Deb Frecklington announced on March 25 her preliminary view was the same as the former Labor government’s.

Executive director, Fox Resources, Bruce Garlick.

Fox Resources executive director, Bruce Garlick reckons the ruling has damaged Queensland’s reputation, raising the issue of sovereign risk in a state that also has the world’s highest coal royalty rates.

“We have been consulting widely with the Bundaberg community including through our Bundaberg Regional Reference Group, which includes local farmers, businesses, traditional owners, trade union, water and other representatives,” Garlick says.

He says the company was “seeking advice,” on the latest ruling.

Originally published as Small Business Restructuring appointments have risen by 161 per cent in the last nine months