Statutory Demand Received
21 Days To Respond — Or Your Company Is Presumed Insolvent
A statutory demand is a formal notice issued under the Corporations Act 2001 by a creditor — including the ATO — requiring a company to pay an amount within 21 days. If the company fails to comply, the law presumes the company is insolvent, and the creditor can file a winding-up application in court to have the company shut down.
If your company has received a statutory demand, expert guidance from a Small Business Restructuring Practitioner may help determine the most effective response — including whether SBR can pause the demand and restructure the underlying obligation, or whether a different statutory response is required within the window.
Free consultation. No upfront fees.
Serving directors of companies across the country.
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Confidential Case Review
21-Day Window — Act Now
Specialist Restructuring Practitioner Advice
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⏳ The 21-Day Window — Why Every Day Matters
What Happens If The Demand Is Not Properly Responded To
The statutory demand starts a strict 21-day clock. Every response option — paying, negotiating, applying to set the demand aside, appointing a Small Business Restructuring Practitioner, or appointing a voluntary administrator — must be initiated within that window. Letting the deadline pass triggers a presumption of insolvency that is extremely difficult to undo.
Day 1 — 7
Best Window
All response options remain available. Practitioner consultation, eligibility review, and strategy can be planned in an orderly way. Highest chance of resolving the demand without escalation.
Day 8 — 14
Options Narrowing
Time to organise SBR or voluntary administration appointments compresses. Court applications to set aside need lead time to prepare. Some paths still available, but margin for delay is gone.
Day 15 — 20
Critical Period
Same-day appointments are rarely possible. Set-aside applications cannot be filed at the last minute. Many options effectively close before the deadline because they cannot be executed in time.
Day 21+
Window Closes
The company is presumed insolvent. The creditor can file a winding-up application in court. Defending the winding-up requires rebutting the presumption of insolvency — a much harder, more expensive position.
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The 21 days run from the date the demand is served — not the date you received it. Acting in the first week is the single most effective step a director can take.
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Services offered by MCR Partners Pty Ltd, which holds an Australian Credit Licence 531570.
Response Options Within The 21-Day Window
Each Has Different Requirements And Different Consequences
💰 Pay The Demand In Full
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Resolves the immediate threat but typically not viable when the company is already under financial pressure. May be appropriate where the amount is modest and funds are available.
🤝 Reach A Negotiated Agreement
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Settle with the creditor on agreed terms before the 21 days expire. Requires creditor cooperation and the agreement must be documented to formally resolve the demand.
⚖️ Apply To Set Aside The Demand
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Court application within 21 days on specific statutory grounds — genuine dispute about the amount, offsetting claim, or defect in the demand. Requires legal preparation time.
🏢 Appoint An SBR Practitioner
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Appointing a Small Business Restructuring Practitioner pauses certain creditor recovery action and allows the underlying obligation to be restructured through a formal plan. Directors stay in control.
⚖️ Appoint A Voluntary Administrator
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For larger or more complex companies, appointing a voluntary administrator triggers a moratorium on creditor action — though directors lose control of the company.
📋 Eligibility Criteria Apply
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Each path has specific statutory conditions and timing constraints. A specialist consultation determines which option is available to you and what action must be taken — and by when.
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Doing nothing is not a response. The 21-day window expires automatically — and the consequences are severe and difficult to reverse.
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✅ The Recommended Path: Specialist-Guided Small Business Restructuring
Why SBR Is Often The Strongest Response To A Statutory Demand
For most eligible companies, Small Business Restructuring is the strongest response to a statutory demand. Appointing a Small Business Restructuring Practitioner within the window pauses certain creditor recovery action, allows the underlying obligation to be addressed through a formal restructuring plan, and keeps the directors in control of the company throughout. Engaging an SBRP early is the path that resolves the demand and the underlying financial position — not just the immediate threat.
🎯 Directors Stay In Control
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Unlike voluntary administration or liquidation, the directors continue running the business throughout the SBR process. The SBRP supervises — but does not displace management.
🛡️ Recovery Action Paused
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When the SBRP is appointed within the window, certain unsecured creditor recovery action is paused — providing breathing room for the plan to be developed and put to creditors.
💰 Compromise The Underlying Obligation
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The restructuring plan may compromise the historical liability that triggered the demand — resolving not just the immediate threat but the financial pressure underneath it.
🏢 The Business Survives
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SBR is structured to preserve trading. The company keeps operating, retains staff, and maintains customer relationships throughout the process and beyond.
💼 Lower Cost Than Administration
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SBR is a streamlined alternative to traditional voluntary administration — designed for small business economics, with reduced complexity and contained professional fees.
📅 Defined Statutory Timeline
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A 20 business day proposal period to develop the plan, followed by a 15 business day acceptance period for creditors to vote. Predictable, time-bound, and end-to-end measured in weeks.
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Where SBR isn't the right fit — for example, where the demand is genuinely disputed and a set-aside application is the better path, or where the company exceeds the SBR eligibility threshold — a specialist consultation will identify the appropriate alternative within the same window.
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⚠️ When Directors Seek Expert Advice
Situations That Warrant An Urgent Review
A statutory demand has been served on the company
The 21-day window is still open and action is required
The company cannot pay the full amount within the window
There is genuine dispute about the underlying liability
The company has other historical obligations under pressure
Directors want to keep the business trading and avoid winding-up
A professional consultation may help determine which response is the right option for your circumstances within the statutory window.
Services offered by MCR Partners Pty Ltd
Australian Credit Licence 531570 — No Surprises, Just Results
Reduce Your Tax Obligations By Up To 70%
Through a transparent Legislated Government Program within 3 months. On average, we reduce more than 70% of the total ATO obligation amount.
20+ Years Experience
Work with registered practitioners who have years of experience handling ATO issues, creditor disputes, and formal restructuring processes.
10 Minute Callback
Statutory demand deadlines don't wait. Submit your details and a Restructuring Practitioner will call you back within 10 minutes during business hours.
Honest, Focused Guidance
Practitioners advise on where Small Business Restructuring fits and where alternative paths such as voluntary administration or a set-aside application may be more appropriate — so you reach the right outcome, not just any outcome.
Dedicated Practitioners
Speak with a licensed professional about your statutory demand, the underlying obligation, and practical next steps for protecting the company and your personal position.
Trusted By Directors
Helped hundreds of directors navigate statutory demands, ATO pressure, DPN deadlines, and restructuring with clarity and confidence.
Transparent Legal Process
The Small Business Restructuring (SBR) program is a Legislated Government Program. We explain every step in plain English so you always know what's happening.
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MCR Partners specialises exclusively in Small Business Restructuring — so the advice you receive is focused on what we do best, with referrals to other registered practitioners where a different path is appropriate.
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👤 Who Is A Small Business Restructuring Practitioner?
Understanding The Role Before You Appoint One
A Small Business Restructuring Practitioner (SBRP) is a registered liquidator who has been formally appointed to oversee a company's restructuring under the Small Business Restructuring regime introduced under the Corporations Act 2001. The role is specific, regulated, and distinct from the broader functions of a liquidator or voluntary administrator.
🛠️ What An SBRP Does
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Reviews the company's financial position and confirms eligibility for the SBR regime
Works with the directors to develop a formal restructuring plan
Certifies the plan and the supporting director declaration
Notifies and engages with creditors throughout the proposal period
Administers the plan once accepted, including distributing payments to creditors
⚖️ How The Role Differs
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Unlike a voluntary administrator, an SBRP does not take control of the company — directors continue to run the business
Unlike a liquidator, an SBRP is not winding the business up — the goal is preservation, not closure
All SBRPs are registered liquidators, but not every liquidator chooses to take SBR appointments
The appointment is regulated by ASIC and bound by specific independence and conduct requirements
The role is time-bound — defined statutory periods govern the proposal and creditor acceptance phases
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An SBRP supervises the restructuring process — the directors continue to run the business throughout.
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⚙️ How The Process Works
A structured and confidential evaluation
Submit your statutory demand details and company financial information through our secure form.
A Restructuring Practitioner reviews the demand, the underlying obligation, and the response options available within the window.
You receive guidance on the most effective response — and the action that needs to be taken, by when.
📞 What Happens After You Submit
Clear guidance. No pressure.
Intake team reviews the statutory demand and submitted company information
Restructuring Practitioner calls you back within 10 minutes during business hours
Eligibility for SBR is assessed and all response options are explained
Follow-up may occur to gather additional documentation
You decide how to proceed — no obligation
Free consultation. Confidential review.
Could Specialist Guidance Help You Respond Within The 21-Day Window?
Understand Your Options
Free consultation. No upfront fees.
Real Outcomes From Directors Who Acted In Time
Verified results from MCR Partners' Small Business Restructuring clients
Labour Hire Contracting (saved $90,250)
The team made it easy. Reducing the tax made things a little easier and elevated the stress off our shoulders. Fantastic team. I'd recommend them to any and every one that I know.
Concrete Construction (saved $331,404)
Company tax debt due to covid and non-compliant payment plans with the ATO. We didn't know how to stop the pressure building. Working with the team gave us better cash flow and healthier money management — continuing to trade has been absolutely life-changing. Very easy, a lot easier than anticipated. Extremely happy with the whole team.
Cafe & Hospitality (saved $152,071)
Company tax obligations in the food industry kept building due to Covid. We didn't know how to stop it. After the process it was reduced, we paid off the agreed amount, cash flow improved, and we're still trading with a great business now. Very simple, well-managed and easy. I've already recommended it to others.
Retail & Tutoring (saved $330,000)
Company tax obligation due to covid and related issues. We were really trying to find a solution to get on top of it but didn't know where to start. After the SBR process the company tax debt was reduced, stress dropped, we had an appropriate plan, and we were able to continue to trade. Very fast, efficient, very easy. I would definitely recommend it.
Compliance & Privacy Policy
Restructuring and ATO obligation support is one of the services offered by MCR Partners Pty Ltd, which holds an Australian Credit Licence 531570.
We work alongside the Small Business Registered Practitioner and hold your hand through the process.
This process is fully legal, transparent, and designed to help eligible companies & trusts reduce their tax debt while staying in control.
All information on this website is general and not personal financial advice.
Results and savings shown are based on real client outcomes, but individual results may vary depending on your situation.
Your privacy is important to us.
Any details you share are kept private, secure, and confidential in line with the Privacy Act 1988 (Cth).
We never sell or share your information with third parties unless required by law or with your consent.