Liability Insurance Australia :: 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

Significant Decline in Australian Commercial Insurance Rates in Early 2026
Significant Decline in Australian Commercial Insurance Rates in Early 2026
30 Apr 2026: Paige Estritori
In the first quarter of 2026, Australia's commercial insurance market experienced a notable decline in rates, with an average decrease of 12%, as reported by Marsh's latest Global Insurance Market Index. This trend marks a continuation of the previous quarter's downward trajectory, offering potential relief to businesses grappling with insurance costs. - read more
Anticipated Decline in Renewable Energy Insurance Premiums Across Australia in 2026
Anticipated Decline in Renewable Energy Insurance Premiums Across Australia in 2026
30 Apr 2026: Paige Estritori
In a positive development for Australia's renewable energy sector, insurance premiums for large-scale solar, wind, and battery projects are forecast to decline in 2026. This trend reflects the maturation of the industry and the accumulation of operational data, which have contributed to a more favorable risk assessment by insurers. - read more
APRA Strengthens Oversight with Additional Capital Mandate for Sovereign Insurance
APRA Strengthens Oversight with Additional Capital Mandate for Sovereign Insurance
30 Apr 2026: Paige Estritori
The Australian Prudential Regulation Authority (APRA) has recently directed Sovereign Insurance Australia Pty Ltd to bolster its financial reserves by an additional $2 million. This move aims to enhance the insurer's financial resilience and ensure its capacity to meet policyholder obligations effectively. - read more
Understanding the Surge in Australian Insurance Premiums
Understanding the Surge in Australian Insurance Premiums
30 Apr 2026: Paige Estritori
In recent years, Australian businesses have faced a significant increase in insurance premiums, with rates rising by 51% over the past five years. This trend has raised concerns among small to medium business owners about the affordability and accessibility of essential insurance coverage. - read more
Record High Insurance Complaints in Australia Amid Claim Delays
Record High Insurance Complaints in Australia Amid Claim Delays
30 Apr 2026: Paige Estritori
Australian insurers are currently experiencing an unprecedented surge in consumer complaints, with the Australian Financial Complaints Authority (AFCA) reporting a record 100 complaints per day. This increase is primarily attributed to significant delays in processing everyday insurance claims, leaving many policyholders frustrated and financially vulnerable. - read more


Business Insurance Articles

Common Myths About Public Liability Insurance Debunked
Common Myths About Public Liability Insurance Debunked
Today, we're diving into the world of public liability insurance, a crucial topic for anyone running a small business or working as a self-employed professional in Australia. - read more
The Importance of Public Liability Insurance in the Australian Labour Hire Industry
The Importance of Public Liability Insurance in the Australian Labour Hire Industry
The Australian labour hire industry has seen a significant rise in recent years, and with this growth, comes new and unique risks that companies in this industry must be prepared to navigate. One such risk is the potential for accidents or damages to occur in the workplace, which is where public liability insurance comes in. This article will explore the definition of public liability insurance and why it is so important for labour hire companies in Australia. - read more
Is Your Business Fully Protected? Top Signs It’s Time to Renew Your Liability Insurance
Is Your Business Fully Protected? Top Signs It’s Time to Renew Your Liability Insurance
As a business owner, one of your top priorities is safeguarding your enterprise from unforeseen events that could lead to financial liabilities. Liability insurance is the cornerstone of this protection, offering a safety net against claims that could otherwise derail your business's financial stability. However, it's not just about having insurance; it's crucial to ensure your coverage is current and adequate for your evolving business requirements. - read more
The Cost of Safety: How Much Public Liability Insurance Does Your Australian Business Need?
The Cost of Safety: How Much Public Liability Insurance Does Your Australian Business Need?
As a business operating in Australia, understanding the ins and outs of public liability insurance is not just recommended, it's essential. This type of insurance serves as a safeguard, protecting your business against the financial repercussions of lawsuits and claims arising from third-party injuries or property damage due to your business operations. In a world where one unintended mishap can lead to costly legal battles, public liability insurance stands as your first line of defense. - read more
Q&A: Common Questions Australian Business Owners Have About Public Liability Insurance
Q&A: Common Questions Australian Business Owners Have About Public Liability Insurance
Public liability insurance is a crucial aspect of managing risk for businesses in Australia. This type of insurance covers costs associated with claims made against a business for property damage or personal injury caused during business operations. - 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
Endorsement:
An amendment or addition to an existing insurance policy that changes the terms or scope of the original policy.