What cents in the dollar does the ATO accept in an SBR?
Short answer
There is no published minimum, but completed restructuring plans have paid a median of 20 cents in the dollar, and 59% paid between 15 and 25 cents, according to ASIC's Report 810. The ATO was a creditor in at least 93% of those plans. Offers of roughly 10 to 30 cents have been accepted, but the ATO is voting no more often. Start with our small business restructuring guide.
What the numbers say
| Measure (ASIC Report 810, July 2022 to December 2024) | Figure |
|---|---|
| Median return to unsecured creditors in completed plans | 20 cents in the dollar |
| Average return | 21 cents |
| Share of plans paying 15 to 25 cents | 59% |
| Plans approved by creditors, overall | 87% |
| Approval rate trend | 88% in 2022-23, down to 79% in the first half of 2024-25 |
| Plans where the ATO was a creditor | At least 93% |
| Share of dividends paid to the ATO | About 87%, roughly $88 million of $101 million |
Because the plan passes on a majority in value of creditors who vote, and the ATO is usually the largest creditor by a wide margin, the ATO's vote is in practice the decision. The falling approval rate is mostly creditor rejection, and that is mostly the ATO.
What the ATO weighs before voting
The ATO does not publish a formula. From its stated approach and from plans that have passed and failed, the things that matter are:
- More than liquidation would pay. The starting question. If the company has no assets, liquidation returns nothing, so even a modest plan beats it. If there are assets or recoverable transactions, the bar rises.
- Compliance from now on. Lodgements must be current to start, and the ATO looks for evidence that the business can pay its ongoing tax on time while also funding the plan. A plan that fixes the past while the next BAS goes unpaid will not pass.
- How the debt arose. Unpaid GST and PAYG withholding are money collected from customers and staff. A large share of that in the debt, or a history of repeated defaults, counts against a low offer.
- Director contribution. Plans funded partly from the director's own pocket, or a lump sum early, are received better than promises spread over 3 years.
- Phoenix signals. Related party transactions, a new entity in the wings, or assets that recently left the company will sink the vote and invite investigation.
- Any director penalty. Appointing the practitioner within 21 days of a notice remits a non-lockdown penalty. Does SBR protect me from a DPN explains what it does not remit.
Not sure what offer the ATO would accept?
A specialist can benchmark your proposal before it goes to a vote. Free, no obligation.
Why it is tightening, and what a no means
Appointments grew from 448 in 2022-23 to 1,425 in 2023-24 and around 3,000 the year after, almost all with the ATO as the main creditor. The ATO has said publicly that it scrutinises proposals more closely now and will vote against plans that offer too little, that reward poor compliance, or that look like a way to shed debt while the same people carry on. A low offer that would have passed in 2023 may not pass in 2026.
If the ATO votes no, the restructuring ends, the fixed fee is still owed, and every debt becomes payable on the next business day. From there the options are a full ATO payment plan, a formal compromise, which is rare, or liquidation. Because a company gets one restructuring attempt in 7 years, the offer needs to be pitched realistically the first time. How much does small business restructuring cost covers what you are committing to.
What to do next
- Ask the practitioner for a written liquidation comparison, because that is the first thing the ATO will measure your offer against.
- Build the plan on realistic cash flow that also covers every BAS and super payment falling due during the plan.
- Have a specialist or the practitioner sound out the ATO's likely view before lodging, rather than finding out at the vote.
Related questions
Will the ATO accept a plan that pays less than 10 cents in the dollar?
Rarely, and only where liquidation would clearly return nothing and the company's future compliance looks solid. Very low offers are now the ones most likely to be rejected. If the business genuinely cannot fund more than a few cents, the ATO may take the view that it is not viable and that liquidation is the honest outcome.
Does the ATO negotiate the offer, or just vote yes or no?
Mostly it votes. There is no formal negotiation step, but the practitioner can discuss the proposal with the ATO before it is lodged, and the ATO can indicate what it would find unacceptable. That is why experienced practitioners test the offer with the ATO first rather than lodging a plan blind.
Not sure what offer the ATO would accept?
A specialist can benchmark your proposal before it goes to a vote. Free, no obligation.
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