How much does SBR cost?

How much does SBR cost?

The cost of SBR in Australia can be vary depending on the size and complexity of the business. It is generally made up of a fixed fee plus a percentage-based “deal fee”.

SBR fee structure

SBR fees can vary depending on how many creditors there are, whether accounts and tax lodgements are up to date, and how quickly reliable financial information can be provided. These factors can affect both parts of the two-fee model (the upfront fixed fee for the proposal period, and the percentage-based fee payable from distributions under the plan if it’s accepted). As a rough guide, a simpler matter with a common creditor mix and clean bookkeeping is often quoted at the lower end of the ranges below, while matters involving complex group structures, disputes, or incomplete records are usually at the higher end.

• Fixed fee (commonly in the range of around $10,000-$20,000 incl. GST) for the restructuring phase
• Deal / plan fee (often around 15%-20% of amount distributed to creditors under the plan), depending on complexity and the terms of the plan

By law, restructuring practitioners must quote (1) a fixed fee for the restructuring proposal period, and (2) a separate percentage-based fee that is built into the restructuring plan and paid from the amounts distributed to creditors under the plan (if the plan is accepted). The exact figures and percentage vary from matter to matter and should be confirmed in writing before you proceed.

What do these fees cover?

The fixed fee includes:

• Assessing ongoing eligibility
• Reviewing company financials
• Working with directors to prepare a restructuring plan
• Managing the proposal process with creditors

The percentage-based deal fee applies during the implementation phase and varies depending on the structure of the repayment plan (e.g. lump sum vs instalments).

How much does SBR cost overall?

Total SBR costs typically fall within $15,000 to $30,000. 

These costs should be considered alongside the potential outcome. In many SBR cases, businesses achieve significant debt reductions (often 60%-90%), meaning the savings can far exceed the cost of the process.

What affects the cost of SBR?

Although the fee structure is relatively consistent, the total cost can vary depending on the nature of the business and its financial position. In practice, restructuring practitioners assess several factors when determining fees, including:

• Number of creditors – fewer creditors typically means a simpler process and lower cost
• Level of debt and activity – businesses with lower debt or that have ceased trading are often more straightforward
• Industry type – certain industries, such as construction, can involve more complexity and higher risk
• Creditor management – matters requiring frequent communication or negotiation may take more time to manage
• Legal complexity – existing disputes, court proceedings, or enforcement actions can increase the level of work involved.

Fees are also influenced by general market pricing, with firms typically positioning their costs competitively while reflecting the level of work required.

Additional costs to consider

In some cases, businesses may incur additional costs.

• Accounting or bookkeeping support
• Legal advice, if required

It’s worth noting that some directors end up paying extra advisory fees on top of practitioner costs, which can significantly increase the total cost if not managed carefully.

Is SBR cost-effective?

Compared to other formal insolvency options, SBR is generally considered more affordable than Voluntary Administration, particularly for small businesses. SBR typically range between $15,000 and $30,000, whereas Voluntary Administration often falls within $60,000 to $150,000+. This makes SBR a much more accessible option for small businesses that are still viable but need structured debt relief.

Do you have more questions about our Small Business Restructuring? Read our full guide here

The Importance of Seeking Professional Advice

This article has aimed to provide general information about how much SBR cost, however, every company’s exact circumstances are different. We strongly encourage directors seeking to understand the cost of Small Business Restructuring (SBR) in Australia and what fees and contributions may be involved to give an insolvency professional likeDissolve to discuss your specific circumstances. Dissolve may even recommend cheaper (or free!) solutions than other insolvency firms.