Author
Marcus PetrovicDirector & Head of Client Strategy
In the early days of Small Business Restructuring, approval rates were high. We are now seeing more pushback from the ATO.
In this episode of the MG Academy Podcast, Marcus sits down with Joe Hart from Obsidian Advisory to unpack why debt restructure proposals are being denied in 2026 and what business owners, accountants and advisers need to fix before lodging an SBR.
The conversation focuses on two recurring issues the ATO is scrutinising: compliance history and director loan accounts (including Div 7A loans). Joe explains how Div 7A loans arise, why they exist, and how they are often misunderstood by directors. Many business owners treat company funds as personal drawings without understanding the tax consequences. In a restructuring context, this becomes a major red flag.
Small Business Restructuring remains a powerful tool. But it only works when the compliance and loan position are properly addressed first. If you are advising clients considering an SBR, this episode provides practical guidance on what to review before taking the next step.