Situation
A statutory demand landed on the company
A creditor's statutory demand under section 459E of the Corporations Act gives the company 21 days to pay, settle, or apply to set aside the demand. If 21 days pass without action, the company is presumed insolvent and the creditor can apply to wind it up. Move fast — engage a registered liquidator or financial counsellor today.
Three things to do right now
- 1
Diary the 21-day deadline.
Note the date of service on the demand. Diary the 21st day in red. Every step below sits inside that window.
Now
- 2
Talk to a registered liquidator the same week.
Most registered liquidators will take a free initial conversation. Verify them through ASIC's register first. The conversation is about options — pay, settle, set aside, restructure, administer, liquidate — not about appointment.
This week
- 3
Call the Small Business Debt Helpline on 1800 413 828.
Free specialist counsellors who handle these situations and can help you assess whether the company is realistically eligible for SBR before you make a call.
Today, Mon–Fri 9am–5:30pm AEST
Key facts (checked May 2026)
- 21-day clock under s459E
- A creditor's statutory demand under section 459E of the Corporations Act 2001 gives a company 21 days to pay the debt, secure or compound it to the creditor's satisfaction, or apply to set the demand aside.
- Silence creates a presumption of insolvency
- If 21 days lapse, the company is presumed insolvent and the creditor can apply to the court to wind it up under s459P. The presumption can only be displaced by the company proving solvency — a much harder position than acting in time.
- Set-aside applications are tight
- An application to set aside under s459G must be filed and served within the 21 days. There is no statutory extension and the courts are strict.
- This is also a moment, not just a problem
- A statutory demand often triggers the decision between Small Business Restructuring, voluntary administration, and informal negotiation. Use the 21 days to make a deliberate choice rather than a forced one.
Who to call
Free or low-cost. Independent of creditors. Checked May 2026.
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.
Verify any practitioner before any appointment. Initial conversations are commonly free.
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 financial counselling. Use them to map options before committing.
Australian Small Business and Family Enterprise Ombudsman
Federal statutory ombudsman for small business. Free assistance with disputes against other businesses or government, plus a Tax Concierge for ATO matters.
If the underlying debt is in genuine dispute, ASBFEO can help structure mediation.
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 coaching sessions while you navigate the next month.
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
- What is a statutory demand?
- A creditor's statutory demand is a written demand under section 459E of the Corporations Act 2001 requiring a company to pay a debt of at least the statutory minimum within 21 days, secure or compound it, or apply to set the demand aside. If the company does nothing within 21 days, it is presumed insolvent.
- Can the 21-day clock be extended?
- No. The 21-day period in section 459G for filing and serving a set-aside application cannot be extended by the court. Engagement with the creditor inside the 21 days is the only way to extend the effective deadline, and only if the creditor agrees.
- What if I think the debt is wrong?
- If there is a genuine dispute about the existence or quantum of the debt, or an offsetting claim, the company can apply to set aside the demand under section 459H. This application must be filed and served within the 21 days. Get legal advice and use ASBFEO if the dispute is commercial.
- Is appointing a Small Business Restructuring Practitioner an option?
- Possibly. Eligible companies (total liabilities of $1 million or less, insolvent or likely to become insolvent, lodgements current, employee entitlements paid, no SBR or simplified liquidation in the prior seven years) can appoint an SBR practitioner under Part 5.3B. Doing so before the 21 days lapses changes the picture. Use our SBR eligibility check, and speak to a registered practitioner.
Sources
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.