How to protect yourself and make smart decisions under pressure
Making decisions about a struggling business under pressure — without qualified advice — can create personal liability that didn't exist before. Free, independent advice is available through ASBFEO and state small business support services. Use it before making any commitments.
Need to talk to someone? 1800 007 007 — National Debt Helpline, free and confidential.
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We'll show you local numbers, services, and rights specific to your state.
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This is the most important thing: understand which debts are personal and which are business. If you're a sole trader, there's no separation — you're personally liable for everything. If you're a company (Pty Ltd), you generally aren't liable for company debts unless you gave personal guarantees. Check your loan documents.
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) provides free support. Call 1300 650 460. Your state also has small business support services. Don't pay for advice until you've exhausted the free options.
If you're a company director, you have legal obligations when the business is insolvent (can't pay debts as they fall due). Trading while insolvent can make you personally liable. Get advice before making any more commitments.
Unpaid tax (BAS, PAYG, super guarantee) creates personal liability even for company directors. If you owe the ATO, call them on 13 28 66 and ask about a payment plan. The ATO is often more flexible than people expect — especially if you call before they chase you.
If business stress is affecting your ability to pay personal debts (mortgage, credit cards), apply for hardship now. Don't wait until you default. Banks must consider hardship applications under the National Credit Code.
For companies: Small Business Restructuring (SBR) lets viable businesses restructure debts while you keep control. Voluntary Administration is for more serious situations. For sole traders: a Debt Agreement or personal insolvency agreement may help. Get advice from ASBFEO or a financial counsellor before deciding.
Your rights, who to call, and free services — everything in one place.
National Credit Code (NCC), National Consumer Credit Protection Act 2009 (NCCP Act)
You can apply for a hardship variation on any loan, credit card, car finance, or mortgage. Since June 2025, buy now pay later services like Afterpay and Zip are also covered. Call your lender's hardship team (not general customer service) and tell them you're experiencing financial hardship and would like to discuss your options.
Your lender must respond to your hardship notice within 21 days. If they need more information, they must request it within 21 days, then respond within 21 days of receiving it. NAB was fined $15.5 million in 2025 for failing to respond to 345 hardship customers — this law is enforced.
Your lender can't just rubber-stamp a rejection. They must genuinely assess your situation, consider what you can afford, and offer alternatives. Common options include: reduced repayments, repayment pause (3-6 months), interest rate freeze, fee waivers, or extending the loan term.
While your hardship application is being assessed, your lender should not take enforcement action — no default notices, no debt collection referrals, no repossession. Your account should be placed on hold.
When you enter a hardship arrangement, a note appears on your credit report — but it cannot be used to calculate your credit score, and it's removed 12 months after the arrangement ends. A default listing, on the other hand, stays for 5 years and seriously damages your ability to borrow. Asking for help early is one of the best ways to avoid a default.
Lenders should consider: extending the loan term, reducing or deferring repayments, pausing interest, waiving fees, or restructuring the debt. In severe cases, partial debt write-off may be offered. Fee waivers and reduced repayments are the most common forms of assistance.
If your lender refuses your hardship request or offers inadequate help, you can lodge a free complaint with the Australian Financial Complaints Authority. AFCA can order the lender to vary your contract, refund fees, reverse interest charges, and award compensation up to $631,500 for direct loss.
Tap any number to call directly. Tell them you're experiencing financial hardship.
What to say: Ask for 'financial assistance'. They can defer loan repayments, reduce credit card minimums, pause fees, and restructure debt.
Your right: Under the National Credit Code, CBA must respond to your hardship notice within 21 days. They must genuinely consider your request.
What to say: Ask for 'financial hardship assistance'. Options include loan deferrals, reduced repayments, and fee waivers.
Your right: Must respond to hardship applications within 21 days and offer genuine alternatives if they decline.
What to say: Ask for 'financial difficulty support'. They can pause repayments, extend loan terms, and waive fees.
Your right: Must respond within 21 days. If they refuse, you can escalate to AFCA for free.
What to say: Ask for 'NAB Assist'. They offer payment pauses, reduced repayments, and restructured loans.
Your right: Must assess your situation and respond within 21 days under the National Credit Code.
What to say: Ask for 'financial hardship assistance'. Options vary by product type.
Your right: Must respond to hardship notices within 21 days.
What to say: Ask for 'financial hardship support'. They can defer home loan repayments and adjust personal loan terms.
Your right: Must genuinely consider your hardship request and respond within 21 days.
These organisations provide free, professional help. Tap any number to call.
See services near you — select your state above to show local services alongside national ones.
Free, independent, and confidential financial counselling. Call to speak to a qualified financial counsellor.
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Free legal advice on banking, insurance, credit, and debt issues. Specialist in financial services disputes.
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TEKVA's Venture track is designed for small business owners navigating difficulty. If your business is at risk and you need support to make clear-headed decisions, talk to us.