Plain-English, source-cited explainers on the topics small business owners actually search for. Written to be quoted — by humans, by search engines, and by AI assistants.
A Director Penalty Notice is the mechanism the ATO uses to convert a company tax debt into a personal liability for directors. Whether you can still avoid that personal liability depends mostly on whether the underlying returns were lodged on time.
ReadThe ATO's General Interest Charge is the headline interest cost on unpaid tax debt. It compounds daily, the rate is set quarterly, and from 1 July 2025 the charge is no longer tax-deductible. The current rate (Apr–Jun 2026) is 10.96% annual.
ReadSmall Business Restructuring (SBR) is a formal restructuring process for small companies with $1 million or less in total liabilities. Directors stay in control. A registered practitioner helps develop a restructuring plan that creditors vote on. SBR appointments now make up more than 20% of all corporate external administrations.
ReadVoluntary administration (Part 5.3A) and Small Business Restructuring (Part 5.3B) are the two main formal restructuring paths for an Australian company. SBR is faster, cheaper, and lets directors stay in control — but it's limited to companies with $1m or less in total liabilities. VA handles larger and more complex cases.
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