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.
- 2
Do not deregister or stop lodging yet.
If the company's BAS is lodged more than 3 months late, or never, the ATO says the director penalty for that PAYG withholding and GST can only be cleared by paying the debt in full, unless you have a defence. Unpaid super has its own deadlines. So lodge first, then close.
- 3
Talk to someone about the mental health side.
Beyond Blue NewAccess for Small Business Owners (03 9250 8305) is free, no GP referral, six sessions. If construction, MATES on 1300 642 111 is 24/7.
Key facts (checked October 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. If the company has stopped trading, owes nothing (including to ASIC), isn't part of any court case, has assets worth less than $1,000 and all its members agree, it may be able to apply to ASIC to deregister. Otherwise it is wound up: a solvent company generally through a members' voluntary liquidation, an insolvent one usually through a creditors' voluntary liquidation, sometimes after voluntary administration. Small Business Restructuring is for an eligible company that wants to keep trading.
- Employee entitlements come first
- In a liquidation, unpaid wages, super, leave and any redundancy owed are priority debts. They are paid before other unsecured creditors if money is left after the costs of the winding up and of any administration before it. The Fair Entitlements Guarantee can step in for employees whose employer is in liquidation or bankruptcy, but the employer's obligations to pay super and PAYG withholding remain.
- Closing is not failure
- Closing well, with creditors engaged, employees treated correctly and lodgements current, protects what you take with you into the next chapter.
Who to call
Free or low-cost. Independent of creditors. Checked October 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 on-site suicide prevention for construction workers and small construction-business owners, with peer support on sites. A case example in the World Health Organization's 2021 suicide prevention guide.
Construction industry: 24/7 helpline, answered by counsellors who know the industry.
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.
Prefer to talk to someone?
Mental health support is free, confidential, and one tap away.
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, or voluntary administration leading to liquidation. If the company could keep trading, Small Business Restructuring (if eligible) is the alternative to closing. 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?
- A sole trader can. A company also has to be formally closed through ASIC. Either way, the ATO says to lodge all activity statements and tax returns, pay any outstanding tax debts and finish employee obligations, and cancelling the ABN doesn't remove them. For company directors, stopping lodgements is what can lock in a Director Penalty Notice. A sole trader stays personally responsible for the business's tax debts.
- What about my employees?
- In a liquidation, unpaid wages, super, accrued leave and any redundancy owed are priority debts. They are paid before other unsecured creditors if money is left after the costs of the winding up and of any administration before it. The Fair Entitlements Guarantee provides a safety net for employees of certain insolvent employers. You still need to issue separation documents and pay any outstanding super to the funds (for super on wages paid up to 30 June 2026, lodge any super guarantee 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.