He pointed out that small business restructuring (SBR) has been particularly effective for viable small businesses, with none of the approximately 150 SBRs managed by his firm defaulting on their payment plans. Despite these restructuring efforts, Archer warned that insolvencies are likely to remain elevated.
“There are strong indicators that business insolvencies will continue increasing or remain at elevated levels for the foreseeable future,” he said, citing ATO’s issuance of 26,702 director penalty notices (DPNs) on $4.4 billion of debt in FY24, a 50% increase from the previous year, as a sign that the pressure on businesses will persist.
Scott Andersen (pictured above right), principal of…
