Currently incorporated companies with liabilities with less than $1 million (excluding employee entitlements) are eligible. All tax lodgments must be up to date. This means that directors have lodged any returns, notices, statements, applications, or other documents as required by taxation laws (within the meaning of the Income Tax Assessment Act 1997).
Under the restructuring plan process, all employee entitlements that are due and payable must be paid before that plan can be put to creditors. And requires directors to make a declaration about certain company transactions and what their reasonable grounds are for believing they qualify for a restructuring plan.
The small business restructuring process can only be used once in a seven-year period. This applies to both the company and the directors (including former directors who resigned in the previous 12 months). It also is excluded if both the company and directors entered into a small business restructure appointment or simplified liquidation (which was introduced with the restructuring process reform) in the same seven-year period.
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