Building Industry Success Story
Building Industry Success Story
How Strategic Planning Turned a $500,000 Tax Problem into a $400,000 Win
Not all tax debt is the result of a bad business decision, and more often than not, it's the complete opposite.
A building business approached SBR Assist with a tax debt exceeding $500,000 and no clear path forward. In recent years, the business experienced cash flow challenges caused by rising labour costs and the collapse of two major building firms that went into administration. These external factors led to mounting creditor pressure and a significant increase in ATO liabilities.
Not all tax debt is the result of a bad business decision, and more often than not, it's the complete opposite.
A building business approached SBR Assist with a tax debt exceeding $500,000 and no clear path forward. In recent years, the business experienced cash flow challenges caused by rising labour costs and the collapse of two major building firms that went into administration. These external factors led to mounting creditor pressure and a significant increase in ATO liabilities.
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Challenge:A building business approached us facing a tax debt exceeding $500,000 and significant uncertainty about how to move forward.
Approach:Before any formal engagement with the insolvency practitioner, SBR Assist coordinated detailed pre-planning between all key stakeholders — the accountant, funding partner, insolvency practitioner, SBR Assist, and the client/director.
Approach:Before any formal engagement with the insolvency practitioner, SBR Assist coordinated detailed pre-planning between all key stakeholders — the accountant, funding partner, insolvency practitioner, SBR Assist, and the client/director.
Building Industry Success Story
Overview
A Victorian business operating within the construction industry was facing significant financial pressure due to approximately $950,000 owed to the ATO, including substantial outstanding employee superannuation entitlements. The directors needed a structured solution to regain control and avoid formal insolvency.
A Victorian business operating within the construction industry was facing significant financial pressure due to approximately $950,000 owed to the ATO, including substantial outstanding employee superannuation entitlements. The directors needed a structured solution to regain control and avoid formal insolvency.
The Challenge
- The ChallengeApproximately $950,000 in ATO liabilities, including unpaid superannuation
- Urgent need to rectify outstanding employee entitlementsAn anticipated SBR proposal of around $200,000
- Requirement to raise funds to pay both the SBR and the superannuation entitlements in full
- Tight timeframes with the insolvency practitioner preparing to commence the formal SBR process
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The Client:A female business owner operating a pizza shop with her husband, who reached out to SBR Assist during one of the most difficult periods of her life.
The Situation:When her husband was struck by a sudden illness and forced out of work, the financial pressure on the family became overwhelming. The business had accumulated a significant tax debt it could no longer service, and the client was left trying to navigate a highly stressful and complex situation without a clear direction forward. The Challenge:The client needed more than just technical advice. She needed someone to coordinate the moving parts — financial, legal, insolvency, and funding — and help bring the right professionals together to create a workable outcome.
The Situation:When her husband was struck by a sudden illness and forced out of work, the financial pressure on the family became overwhelming. The business had accumulated a significant tax debt it could no longer service, and the client was left trying to navigate a highly stressful and complex situation without a clear direction forward. The Challenge:The client needed more than just technical advice. She needed someone to coordinate the moving parts — financial, legal, insolvency, and funding — and help bring the right professionals together to create a workable outcome.
Building Industry Success Story
Overview
SBR Assist helped a civil infrastructure business restructure its ATO liability, raise capital through a private lending facility, and complete a Small Business Restructuring while mainstream lenders declined to assist.
Background
The clients operate in the civil infrastructure industry and own their home in Koo Wee Rup, Victoria. During the COVID-19 pandemic, their sole client entered administration, leaving approximately $250,000 in unpaid invoices outstanding. The impact on business cash flow was severe and sustained. Despite the business difficulties, the clients' personal credit profile remained clean with no adverse history recorded. However, the company credit file carried a significant ATO default, which effectively closed the door on any mainstream lending options.
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The Situation:The client had been managing a complex tax debt for almost two years before it became clear that a Small Business Restructure was the most appropriate pathway forward. Working collaboratively, the client, their accountant, an insolvency practitioner, and SBR Assist each played an important role in shaping the outcome.
The Challenge:The approved SBR totalled $235,000. However, because the security property was owned by the company rather than the individual, conventional SBR funding was not available, with credit assessors identifying the transaction as falling outside standard lending parameters.
The Challenge:The approved SBR totalled $235,000. However, because the security property was owned by the company rather than the individual, conventional SBR funding was not available, with credit assessors identifying the transaction as falling outside standard lending parameters.