Liability Insurance :: News
SHARE

Share this news item!

20-Fold Increase in Small Business Restructurings to Sustain Operations

How SMEs Are Leveraging Restructuring to Navigate Financial Challenges

20-Fold Increase in Small Business Restructurings to Sustain Operations?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Securities and Investments Commission (ASIC) has reported a significant uptick in small business restructurings (SBR), with 3,388 appointments between July 2022 and December 2024.
This marks an almost 20-fold increase compared to the previous period, indicating that more directors are embracing this regime to retain control while restructuring debt.

Of these appointments, 2,820 transitioned to small business restructuring plans, leading to over $101 million in dividends distributed to unsecured creditors. Notably, approximately 87% of these dividends, amounting to $88 million, were allocated to the Australian Taxation Office (ATO).

This surge reflects a growing awareness among SME owners of the benefits of formal restructuring processes. By engaging in SBR, businesses can negotiate with creditors, restructure debts, and implement strategies to return to profitability, all while maintaining operational control.

For small business owners facing financial difficulties, this trend underscores the importance of considering formal restructuring options. Engaging with professional advisors and understanding the available mechanisms can provide a pathway to navigate financial challenges and sustain business operations.

Published:Wednesday, 19th Nov 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Insurance Inquiry Delay Extends Wait for Small Business Answers
Insurance Inquiry Delay Extends Wait for Small Business Answers
04 Nov 2026: Paige Estritori
A federal parliamentary inquiry examining small business insurance has pushed its final report from 27 October 2026 to 26 February 2027, extending the wait for recommendations on affordability, availability and regulation. For Australian businesses that rely on public liability insurance, the delay matters because the inquiry is looking directly at whether modern cover is meeting the needs of small firms, not-for-profits and community organisations. - read more
Life Claims Review Puts Communication Back in Focus
Life Claims Review Puts Communication Back in Focus
04 Nov 2026: Paige Estritori
A new Life Code Compliance Committee inquiry has sharpened attention on how life insurers manage longer-running total and permanent disability and income protection claims, finding that earlier information requests and clearer communication could reduce avoidable delays for people already dealing with illness, injury or loss of income. - read more
Why Liability Pricing Relief Still Needs Caution in Restaurants
Why Liability Pricing Relief Still Needs Caution in Restaurants
04 Nov 2026: Paige Estritori
Australian restaurants and cafes may be entering a more competitive phase for liability insurance, but the latest market analysis suggests owners should avoid treating softer pricing as a signal that risk has reduced. KPMG Australia's October 2026 liability insurance review, drawing mainly on APRAs National Claims and Policies Database to December 2024, points to moderating pricing momentum after several years of premium strengthening, while also highlighting uneven claims experience across public liability and related classes. - read more
Commercial Insurance Softens, but Truck Cover Still Needs Evidence
Commercial Insurance Softens, but Truck Cover Still Needs Evidence
04 Nov 2026: Paige Estritori
Fresh commercial insurance data points to a more buyer-friendly market, but Australian truck operators should be careful not to read the headline fall as a simple forecast for cheaper heavy vehicle cover. Marsh’s Q3 2026 Global Insurance Market Index, released on 21 October 2026, reported a 12 per cent fall in Pacific commercial insurance rates for the quarter, led by property and supported by strong insurer competition. - read more


Business Insurance Articles

Certificate of Currency for Liability Insurance: What It Shows and When It May Be Needed
Certificate of Currency for Liability Insurance: What It Shows and When It May Be Needed
A certificate of currency is commonly requested as proof that an Australian business holds current liability insurance. Here's what it usually shows, what it does not prove, and when contractors, trades and small businesses may be asked to provide one. - read more
How to Assess Risk Exposure and Choose Professional Indemnity Cover
How to Assess Risk Exposure and Choose Professional Indemnity Cover
Professional indemnity insurance can help Australian professionals manage the financial impact of allegations involving mistakes, omissions, negligent advice or breaches of professional duty. Choosing cover starts with understanding your own risk exposure, then matching that exposure to policy limits, exclusions, claims conditions and continuity arrangements. - read more
The Importance of a Custom Risk Management Plan: A Guide for Australian Entrepreneurs
The Importance of a Custom Risk Management Plan: A Guide for Australian Entrepreneurs
In the fast-paced world of entrepreneurship, the only constant is change, and with change comes the inherent realm of the unknown – risk. Australian entrepreneurs, much like their international counterparts, operate in dynamic environments where unpredictability is a staple. However, the unique economic, legal, and environmental aspects of Australia demand a more localized understanding of these risks. Acknowledging this unpredictability is the first step towards mitigating potential threats to one's business venture. - read more
Professional Indemnity Insurance in Australia: What It Covers and How It Works
Professional Indemnity Insurance in Australia: What It Covers and How It Works
Professional indemnity insurance can help protect Australian professionals and service businesses against claims arising from alleged errors, omissions, negligence or breaches of professional duty. This guide explains what it may cover, how claims-made policies work and what to check before arranging cover. - read more


Start Here !
Start here!
Cover Amount:
Postcode:

All quotes are provided obligation-free by a participating broker from our national referral partner network. We respect your Privacy.


Knowledgebase
Waiting Period:
The time period that must pass after filing a claim before the insurance coverage becomes effective or benefits are paid.