Voluntary administration Australia

Helping you explore options to save your business

When a business is under financial pressure, the hardest part is often knowing what to do next. Voluntary administration can give directors breathing space, protect the business from immediate creditor pressure, and create an opportunity to assess whether the business can be restructured or saved.

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Insolvency specialists since 1973

Registered liquidators & trustees

Worrells is available Australia-wide

What is voluntary administration?

Understanding how voluntary administration works

Voluntary administration is a formal insolvency process that gives businesses temporary protection from creditor recovery action while an independent administrator assesses their financial position.

The administrator takes control of the company and investigates its affairs. During this period, unsecured creditors are generally unable to take recovery action without consent or court approval.

The process provides breathing space while creditors consider options, including:

  • restructuring the business through a deed of company arrangement (DOCA)

  • returning control of the company to directors

  • selling the business or its assets

  • placing the company into liquidation where restructuring is not viable

Voluntary administration is commonly used where a business remains operational but is experiencing significant financial pressure, creditor action, cash flow issues or ATO debt.

Voluntary administration

Voluntary Administration #1 | Introduction

The voluntary administration process

What directors and stakeholders can expect

The voluntary administration process is designed to move quickly while providing directors and creditors with enough information to assess the company's future.

Step 01

Voluntary administrator appointed

Directors appoint a voluntary administrator, such as Worrells, to assess the company's financial position and available options.

Step 02

Protection period begins

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Step 03

Financial assessment undertaken

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Step 04

First creditors' meeting held

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Step 05

Recommendation report issued

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Step 06

Creditors vote on company's future

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Step 07

Outcome implemented

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The earlier the conversation happens, the more options are usually available.

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Key benefits of voluntary administration

Why businesses may consider voluntary administration

Voluntary administration can provide directors and stakeholders with time, structure and protection while a company's future is assessed.

Hit pause

Get a moratorium on creditor action.

Save the business

Trade out of short-term difficulties caused by cash-flow restrictions or one-off financial problems.

Pathway to turnaround

A Deed of Company Arrangement is the next appointment step for viable businesses.

Space to breathe

Protects directors over company debts incurred while restructuring.

Address legacy debt

Restructuring allows legacy debt to be addressed and strategically planned for.

Right-size the business

Restructure business operations to make a profit more efficiently while meeting current market demands, in the current economic environment.

Talk to an expert

Connect with your local Worrells principal

Reviewing your position while repayment flexibility is available can help determine whether repayment arrangements are likely to resolve the issue or whether a more structured solution should be considered.

The earlier the conversation happens, the more options are usually available.

Trusted across Australia

Read genuine feedback from clients and referrers about their experience working with the Worrells team.

I

Ivonne *

Local Guide · 137 reviews · 8 photos

The team at Worrells were very helpful, professional and supportive. They explained everything clearly and made a difficult situation feel more manageable. Their communication was excellent and I felt guided throughout the process. I truly appreciate their assistance and would happily recommend their services.

Sydney, NSW
G

Graeme Bailey

Local Guide · 24 reviews · 14 photos

Chris Cook and his team are among the best in the business. Feedback i get from referrers and referees is consistent in their praise of their expertise. I have no hesitation in recommending them . Even just to to get a financial checkup give them a call.

Brisbane, QLD
J

James Walker

9 reviews

My thanks to Matthew Kucianski for guiding me through a technical and emotionally complex situation. Matt's style, experience, and expertise are supportive, precise, and effective. Essential and much appreciated. Best wishes, James Walker

Melbourne, VIC
P

Paul White

4 reviews · 1 photo

Initially we approached the option of going down the Small Business Restructure path with some trepidation. Although we had spoken with another firm in our industry that had been through the SBR process using a different advisory firm and we had read everything about the SBR process available....

Perth, WA

Not sure if eligible for voluntary administration?

Other restructuring and insolvency options

Voluntary administration is only one of several formal restructuring and insolvency solutions available to financially distressed businesses.

Depending on the circumstances, other options may include small business restructuring, safe harbour strategies, deeds of company arrangement, informal turnaround strategies, or liquidation where restructuring is no longer viable.

An early assessment can help determine which option is most appropriate and whether restructuring opportunities are still available.

Deeds of Company Arrangement

Small business restructuring

Safe harbour

Liquidation
Resources

We’re knowledge sharers

Get the latest insights and news on small business restructuring

Starting the conversation sooner can help keep more options available

If your business is experiencing financial pressure, Worrells can help assess your position and explain the restructuring or insolvency options available.

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Voluntary administration FAQs

Common questions

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