Struggling with business or tax debt?
Worrells can assess your position and help you understand the options available, from restructuring through to formal insolvency.
Speak directly with an experienced insolvency and restructuring professional. Your initial conversation is confidential and comes with no obligation.
50+ years experience
Small business restructuring practitioners
32 offices Australia wide
Falling behind with the ATO or other creditors can happen for many reasons, including changing trading conditions, cash-flow pressure, accumulated tax debt, unexpected costs or simply a difficult period for the business.
What matters is understanding the extent of the problem and acting before your options become more limited.
A Worrells business debt assessment can help you understand:
Facing up to a challenge is often the hardest part, but better things can only come from taking the first step on the path to the other side.
PATHWAY 1
The existence of debt doesn’t necessarily mean a business needs to close.
If the underlying business remains viable, there may be opportunities to improve cash flow, address creditor pressure or restructure existing debts.
Depending on your circumstances, this may include dealing with ATO debt and other creditors or considering a formal small business restructuring process.
PATHWAY 2
Sometimes the financial position has progressed beyond what can realistically be resolved through normal trading.
If this is the case, getting clear advice can help you understand the available formal options, including voluntary administration, liquidation or other insolvency processes.
The objective is to understand the position early and choose the most appropriate pathway rather than allowing circumstances to make the decision for you.
Start by understanding where you stand
1
Give us an overview of the business, the debts you’re dealing with and any immediate creditor or ATO pressure.
2
We’ll help you understand the financial position, the issues that need attention and the options that may be available.
3
We’ll explain the potential pathways and what each could mean for the business, its creditors and you as the business owner or director.
Business debt rarely comes from only one place. We regularly speak with business owners dealing with combinations of the following.
Outstanding income tax, GST, BAS liabilities and other amounts owed to the Australian Taxation Office.
Outstanding employee superannuation obligations and associated pressure.
Invoices and creditor balances that have accumulated as cash flow has tightened.
Business loans, equipment finance and other commercial lending commitments.
Outstanding wages, leave, superannuation or other employee obligations.
Personal guarantees, Director Penalty Notices and other circumstances that may create personal consequences for directors.
There isn’t one solution for every business.
The options available depend on circumstances including:
You’re not alone.
Tax debt can build gradually through BAS, GST, PAYG withholding, income tax and other obligations, particularly when cash flow is tight.
If ATO debt is becoming difficult to manage, a business debt assessment can help determine whether the issue can be addressed within the existing business or whether a restructuring or insolvency pathway should be considered.
Acting earlier generally gives you more opportunity to understand and assess the available options.
Contact
We have the tools and framework to lead all parties through choppy seas
Get in touch
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Principal, Gold Coast, Northern NSW
Principal, Western Sydney, Central West
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FAQs
The appropriate response depends on the size and type of tax debt, the financial position of the business and whether the business remains viable. Getting advice early can help you understand what options are available before creditor pressure escalates.
For eligible incorporated businesses, certain unsecured debts — which can include eligible ATO liabilities — may form part of a small business restructuring plan. Eligibility and the treatment of individual debts need to be assessed based on your circumstances.
Potentially. Debt alone does not determine whether a business is viable. Cash flow, profitability, assets, creditor position, future trading prospects and the nature of the debts all need to be considered.
Small business restructuring is a formal process available to eligible incorporated businesses that allows directors to remain in control while working with a registered restructuring practitioner to propose a restructuring plan to creditors.
A sole trader and a company are treated differently because a sole trader is personally responsible for the debts of the business. Different personal insolvency and debt options may therefore need to be considered.
Unresolved debts can lead to increasing creditor pressure and potentially recovery or enforcement action. The appropriate response depends on the circumstances, but seeking advice earlier generally provides more time to assess the available options.
No. The purpose of an initial discussion is to understand your circumstances and the options available. A formal insolvency appointment is only one possible pathway.
Your initial conversation with Worrells is confidential and without obligation.
Business debt can feel overwhelming when you don’t know what happens next.
A confidential conversation can help you understand the position, the available options and the next step for you and your business.
Tell us a little about what’s happening and one of our experienced team members will contact you.