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:

Insurance News

Health Insurance Premiums to Rise by 4.41% in 2026
Health Insurance Premiums to Rise by 4.41% in 2026
11 Apr 2026: Paige Estritori
The Australian government has approved a 4.41% increase in health insurance premiums, set to take effect in 2026. This adjustment reflects the rising costs associated with healthcare services and the need to maintain the sustainability of the health insurance sector. - read more
Australian Insurers Address Premium Affordability Challenges
Australian Insurers Address Premium Affordability Challenges
11 Apr 2026: Paige Estritori
The Australian insurance sector is currently grappling with significant challenges, notably the affordability of premiums for consumers. A recent survey by Gallagher Bassett highlights that premium affordability, cybersecurity, and labour shortages are the top concerns for insurers in 2026. ([insurancenews.com.au](https://www.insurancenews.com.au/daily/industry-reshapes-priorities-amid-price-cost-pressures?utm_source=openai)) - read more
Declining Commercial Insurance Rates in Australia
Declining Commercial Insurance Rates in Australia
11 Apr 2026: Paige Estritori
The Australian commercial insurance market is witnessing a notable decline in rates, driven by intensified competition and an increase in insurer capacity. According to reports from global brokers Marsh and Aon, the Pacific region experienced a 12% reduction in commercial insurance rates during the last quarter of 2025, marking the most significant drop since early 2024. ([insurancenews.com.au](https://www.insurancenews.com.au/local/commercial-pricing-tipped-to-stay-soft?utm_source=openai)) - read more
Impact of Hailstorm Claims on Australian Insurers' Profits
Impact of Hailstorm Claims on Australian Insurers' Profits
11 Apr 2026: Paige Estritori
The Australian insurance industry has recently faced a substantial decline in profits, primarily due to a series of severe hailstorms that occurred in October and November 2025. Data from the Australian Prudential Regulation Authority (APRA) reveals that the general insurance sector reported a net profit of $132 million in the December quarter, bringing the annual total to approximately $5.8 billion. This marks a decrease from the $6.8 billion profit recorded in 2024. ([insurancenews.com.au](https://www.insurancenews.com.au/local/industry-profit-sinks-as-hail-hits-home?utm_source=openai)) - read more


Business Insurance Articles

The Top 5 Risks Small Businesses Face and How to Mitigate Them
The Top 5 Risks Small Businesses Face and How to Mitigate Them
Running a small business can be both rewarding and challenging. One of the key challenges is the variety of risks that can arise unexpectedly. These risks can range from financial uncertainties to operational hiccups, each potentially impacting your business's success. Understanding these risks and preparing for them is crucial for the longevity and sustainability of any small enterprise. - read more
The Cost of Being Uninsured: Why Every Australian Small Business Needs Liability Coverage
The Cost of Being Uninsured: Why Every Australian Small Business Needs Liability Coverage
Welcome to the complex world of running a small business in Australia where navigating through liability risks is as crucial as managing daily operations. This article is crafted to illuminate why every Australian small business needs liability coverage — a shield to protect against potential financial catastrophes. - read more
The Impact of Environmental Liability on Australian Business Operations
The Impact of Environmental Liability on Australian Business Operations
In today's ever-evolving business landscape, the significance of environmental sustainability and legal accountability is increasingly paramount. Australian enterprises, in particular, are encountering a growing need to understand and manage environmental liability. This reality not only influences corporate image but also carries substantial financial and legal ramifications. - read more
How to Lower Public Liability Insurance Premiums Without Sacrificing Coverage
How to Lower Public Liability Insurance Premiums Without Sacrificing Coverage
In the ever-evolving landscape of Australian commerce, business insurance stands as a crucial bulwark, safeguarding enterprises against unforeseen financial perils. Recognizing this, our in-depth exploration begins with an overview of the monumental role business insurance plays for Australian companies, both large and small. It's a cornerstone for risk management, providing business owners with peace of mind as they navigate the intricacies of their industries. - read more


Start Here !
Start here!
Cover Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.


Knowledgebase
Trauma Insurance:
An insurance that pays a lump-sum amount on the diagnosis of one of several critical illnesses or events