Australia’s corporate regulator says the small-business restructuring regime is producing generally positive results where creditors approve a plan, though approval rates have declined.
ASIC reviewed 6,606 appointments made between January 2021 and June 2026. Across that period, 76 per cent moved to a restructuring plan. The rate fell from 87 per cent in the 2024 financial year to 67 per cent in 2026 as creditor rejections increased.
Approved plans were usually completed: almost half finished within a year and more than three-quarters within two. Liquidators reported A$292 million paid to unsecured creditors, with about 78 per cent going to the Australian Taxation Office. The ATO was a creditor in almost every proposed plan and represented roughly 83 per cent of estimated admissible unsecured claims.
The report is a regulatory review, not a new rule or enforcement finding against individual practitioners. ASIC published a supporting data pack and urged directors to seek advice early, while restructuring remains a viable option.
