The Australian Securities & Investments Commission has published Report 810 reviewing the small business restructuring process for 2022 to 2024, finding a sharp increase in use of the regime and data consistent with it helping financially distressed small companies survive. ASIC also reports it has not found evidence indicating widespread misuse of the process, while noting the importance of safeguards. The review recorded 3,388 small business restructuring appointments commencing between 1 July 2022 and 31 December 2024, up from 82 appointments in the initial period from 1 January 2021 to 30 June 2022. Appointments rose from 448 in 2022 to 23 to 1,425 in 2023 to 24, with 2024 to 25 expected to be around 3,000; Construction accounted for 27% and Accommodation and Food Services for 23% of appointments. Of the 3,388 appointments, 2,820 progressed to restructuring plans, while most of the remaining 568 were terminated after creditors rejected the proposed plan; fulfilled plans distributed more than AUD 101 million to unsecured creditors, with around 87% paid to the Australian Taxation Office, and median practitioner remuneration was AUD 21,998. ASIC said it will continue to monitor uptake and the effectiveness of the regime.
Australian Securities & Investments Commission 2025-06-27
Australian Securities & Investments Commission report indicates small business restructurings are supporting distressed firms as appointments rise to 3,388
ASIC's Report 810 reviews the small business restructuring process from 2022 to 2024, noting a rise to 3,388 appointments from 82 previously. The process aids distressed small companies, with no misuse evidence. Construction and Accommodation and Food Services sectors made up 50% of appointments. ASIC will keep monitoring the regime.