Situation
You're thinking about closing
Closing a business well is a different process from being forced out. Doing it deliberately preserves more options, more dignity, and more of your future. Start with a free conversation with the Small Business Debt Helpline (1800 413 828) before you make any irreversible call.
Three things to do right now
- 1
Call the Small Business Debt Helpline on 1800 413 828.
Free, specialist. Will help you see all the paths — including the ones you haven't considered.
Today, Mon–Fri 9am–5:30pm AEST
- 2
Do not deregister or stop lodging yet.
Stopping lodgement before closure is the single most common way to convert a manageable wind-down into a Lockdown Director Penalty Notice. The order matters: lodge first, then close.
Before anything else
- 3
Talk to someone about the mental health side.
Beyond Blue NewAccess for Small Business Owners (1300 945 301) is free, no GP referral, six sessions plus follow-ups. If construction, MATES on 1300 642 111 is 24/7.
Key facts (checked May 2026)
- Sole trader vs company is the first fork
- A sole trader closes by stopping trading, dealing with debts personally (sometimes via Part IX or bankruptcy), and cancelling the ABN. A company is closed via members' voluntary liquidation (if solvent), creditors' voluntary liquidation (if insolvent), Small Business Restructuring (if eligible), or voluntary administration.
- Employee entitlements come first
- Wages, super, leave, and redundancy are protected debts. The Fair Entitlements Guarantee can step in for employees of insolvent employers, but the employer's obligations to lodge SGC statements and pay PAYG remain.
- Closing is not failure
- Most businesses close at some point. Closing well — with creditors engaged, employees treated correctly, lodgements current — protects what you take with you into the next chapter.
Who to call
Free or low-cost. Independent of creditors. Checked May 2026.
Small Business Debt Helpline
Free, confidential, specialist financial counselling for sole traders and small business owners — tax debt, BAS, supplier pressure, insolvency options.
Free specialist counselling on the closure decision.
ASIC — Find a Registered Liquidator
The official ASIC search for registered liquidators and small business restructuring practitioners. Verify any practitioner you're considering, before paying any fee.
If you're a company director and may need a formal process.
AFSA — Find a Practitioner
The official register of registered trustees and debt agreement administrators for personal insolvency. The sole-trader insolvency path goes through AFSA.
If you're a sole trader and personal insolvency may be involved.
Beyond Blue NewAccess for Small Business Owners
Free six-session mental health coaching for small business owners under stress. Coaches have small business backgrounds. No GP referral required.
Six free mental health coaching sessions.
MATES in Construction
24/7 helpline and peer-led suicide prevention for construction workers and small construction-business owners. Recognised by WHO as global best practice.
Construction industry: 24/7 peer-led helpline.
We do not refer to commercial debt-relief operators.
Every service we point you to is free or low-cost, government-funded or not-for-profit, and independent of creditors. If a paid operator is offering to negotiate your ATO debt or run a Part IX agreement for a fee, talk to the Small Business Debt Helpline first — 1800 413 828, free.
Frequently asked questions
- How do I close a Pty Ltd company that is insolvent?
- An insolvent company is closed through a formal process — most commonly creditors' voluntary liquidation, Small Business Restructuring (if eligible), or voluntary administration leading to liquidation. Each is led by a registered practitioner. Start with a free conversation through the Small Business Debt Helpline (1800 413 828) so you can choose with both eyes open.
- Can I just stop trading and cancel my ABN?
- Only as a sole trader, only after settling outstanding obligations, and only after lodging all outstanding tax returns. Stopping ATO lodgements before closure is one of the patterns that triggers Lockdown Director Penalty Notices for company directors and personal liability for sole traders' tax debts.
- What about my employees?
- Wages, super, accrued leave, and redundancy are protected debts. The Fair Entitlements Guarantee provides a safety net for employees of certain insolvent employers. You still need to issue separation documents and lodge final SGC statements. SBDH can walk you through the sequence.
- Will I lose my house?
- Not automatically. It depends on whether the house is in your name, whether there are personal guarantees, whether you go into personal insolvency, and whether the company's debts can be confined to the company. Talking to a free financial counsellor before making any decision matters.
Sources
- ASIC — Closing a company
- Fair Entitlements Guarantee — Department of Employment and Workplace Relations
TEKVA provides information, not financial counselling or legal advice. Use this page as a starting point, then talk to a free specialist. The Small Business Debt Helpline is 1800 413 828.
This can get clearer from here.