ASIC to Release Third Small Business Review in November
The upcoming review will examine potential adjustments to the insolvency regime's eligibility criteria.
Updated on Oct. 15, 2026 in Business Strategy
Live Poll
Do you believe current government restructuring programs effectively support the survival of small businesses in your area?
ASIC is scheduled to publish its third review of the small business restructuring regime in November 2026. The report will assess whether the current $1 million liability cap for restructuring eligibility requires an increase.
Why it matters
The government is evaluating the regime to determine if modifications are necessary to improve economic productivity. This review follows a period of rising insolvency levels, including 1,808 first-time cases recorded in August 2026.
The regime saw 3,388 appointments during the previous review period, with a median creditor claim value of $359,082. Retail insolvencies reached 1,006 in FY26, with 220 cases recorded in the September 2026 quarter alone.
The players
ASIC
The Australian Securities and Investments Commission is Australia's integrated corporate, markets, financial services, and consumer credit regulator.
Productivity Commission
This is the Australian government's independent research and advisory body on economic policy.
The details
The restructuring regime allows directors to retain control of their businesses while working with a practitioner to propose a plan to creditors. Eligible firms currently use this process as a streamlined alternative to voluntary administration to reduce costs and complexity.
Timeline
2021: The small business restructuring regime commenced.
31 March 2025: Cut-off for fulfilling plans in the previous review.
August 2026: Total first-time insolvencies peaked at 1,808.
September 2026 quarter: Retail insolvencies reached 220.
November 2026: ASIC release of third restructuring review.
Market Landscape
The review sits within a broader effort to manage the surge in corporate insolvencies across Australia. It aligns with the work of the Productivity Commission, which is set to launch a business dynamism inquiry next year to further assess economic stability.
Small business owners facing financial pressure should monitor the review for potential changes to eligibility thresholds. Such updates could provide more flexible paths for companies to restructure their debts without entering full voluntary administration.
The takeaway
Small business restructuring remains a critical tool with a 93 per cent survival rate for successfully fulfilled plans. Business owners are encouraged to track regulatory updates that could influence their ability to manage liabilities during periods of economic volatility.
Further reading
For more context on corporate trends, visit the Australia Business Strategy section.
Source note: This article includes information reported by Ragtrader.
Live Poll
Do you believe current government restructuring programs effectively support the survival of small businesses in your area?
