An insolvent company is one that is unable to pay its debts when they fall due for payment.

Learn more about insolvency.

Simplified debt restructuring process for small business

The Government has announced changes to Australia‚Äôs insolvency framework to help Australian small businesses, their creditors and their employees. As part of these changes, the Government has introduced a new, simplified debt restructuring process for eligible small businesses from 1 January 2021.

The process allows financially distressed small businesses to access a single, streamlined process to restructure their debts, while allowing the owners to remain in control of their business. This will support more small businesses to survive, meaning better outcomes for businesses, creditors, employees and the economy.

Find more information on the new simplified debt restructuring process on The Treasury website.