Reset & Grow

John operates a hardware store through a company J&C Hardware Pty Limited, which has 3 years to go on its store lease which is $48,000 a year and he has two employees who earn $42,000 and $28,000 each.  He currently owes suppliers $80,000 for inventory and the ATO $60,000 in unpaid GST.  The company also owes John’s parents $400,000 when he bought the business off his father 5 years ago.

Is J&C Hardware eligible for the small business restructuring process?

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Given the debts are less than $1.0M the company meets the first part of the eligibility criteria.  Before the plan is proposed the company must also pay monies owed to employees $7,500, and lodge its outstanding BAS and tax returns.


Take our eligibility test to see if your business qualifies for small business restructuring.