The Australian Securities and Investments Commission (ASIC) has published a review of small business restructuring (SBR), finding declining plan approval rates and increasing concentration of tax debt, despite generally positive outcomes for approved plans. The review examined 6,606 appointments commenced between Jan. 1, 2021, and June 30, 2026, and is accompanied by ASIC’s first data pack on the process.
Overall, 76% of appointments progressed to a restructuring plan. That proportion fell from 87% in financial year 2024 to 67% in financial year 2026 as creditor rejections increased. The median proposed dividend to unsecured creditors rose from about 20 cents in the dollar in the regime’s earlier years to 35 cents by the end of financial year 2026, indicating that companies increasingly needed to offer higher returns to secure support. The Australian Taxation Office (ATO) was a creditor in almost all proposed plans and accounted for approximately 83% of estimated admissible unsecured claims.
Most approved plans were successfully completed, with almost half fulfilled within one year and more than three-quarters within two years. Fulfilled plans paid AUD 292 million to unsecured creditors, approximately 78% of which went to the ATO. Alongside the findings, ASIC reminded directors to monitor their companies’ financial position and seek professional advice early, because delays may leave SBR unavailable or unviable. It has also published targeted information explaining the process, costs, risks and alternatives for directors considering restructuring.