Who can use simplified liquidation in Australia?

Eligible small companies with less than $1 million in liabilities, and that meet certain ASIC criteria, can use simplified liquidation.

How does the simplified liquidation process start?

Directors or shareholders of an insolvent small company appoint a liquidator as for a CVL, but request entry to the simplified process.

What are the main benefits of simplified liquidation?

The main benefits are lower costs, reduced reporting paperwork, and a quicker resolution compared to standard liquidations.

Is simplified liquidation a separate type of liquidation?

No—it is a subset of creditors voluntary liquidation (CVL) with special streamlined rules for qualifying small companies.

Who appoints the liquidator in simplified liquidation?

The directors or shareholders appoint the liquidator as in CVL, subject to creditor confirmation.

How does the simplified liquidation process differ from standard CVL?

It features fewer statutory steps and faster finalisation, making it ideal for simpler, smaller companies.

What types of debts can be handled in simplified liquidation?

All unsecured company debts, including to suppliers and the ATO, can be managed through simplified liquidation if total liabilities are under $1 million.

Are directors' duties different in simplified liquidation?

Directors must still cooperate, disclose records, and comply with the liquidator’s requests, consistent with standard CVL obligations.

Can simplified liquidation help avoid court action?

Yes, simplified liquidation can pre-empt compulsory court liquidation and resolve insolvent company affairs efficiently.

What are the eligibility criteria for simplified liquidation?

The company must have liabilities under $1 million, no ongoing court actions, and meet ASIC’s administrative requirements for the streamlined process.

What happens to company assets in simplified liquidation?

Assets are sold and distributed to creditors by the liquidator, following the same priority rules as a CVL.

Who can provide expert help for simplified liquidation?

The Insolvency Group can guide directors and shareholders through eligibility and the full simplified liquidation process.

What reporting is required in simplified liquidation?

Reporting to ASIC and creditors is reduced and simplified, allowing faster finalisation compared to standard CVL.

Does simplified liquidation mean less creditor involvement?

No—creditors are still notified and have rights, but the process is quicker and less administratively intensive.

When was simplified liquidation introduced?

It was introduced in Australia in 2021 to assist small businesses with efficient insolvency closure.

How long does simplified liquidation take?

It is designed to be faster than standard liquidation, often completed in several months rather than up to a year.

What are common reasons to choose simplified liquidation?

Directors choose it for cost-effectiveness, speed, and simplicity when closing an insolvent small company.

Can a company change from standard CVL to simplified liquidation?

If eligibility is confirmed early, the process can be started as simplified liquidation rather than standard CVL.

Why seek professional advice before choosing simplified liquidation?

Specialist advice ensures the company meets eligibility and that directors avoid personal risks or process errors.

What is Simplified Company Liquidation? A Complete Guide

Liquidation advice For company directors and businesses Stakeholders

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What is Simplified Company Liquidation?

The Main Types of Company Liquidation

Simplified Liquidation

When used: For small companies with liabilities under $1 million in a CVL, aiming to minimise cost and speed up the process.
Who appoints the liquidator? The same as for a CVL, but with simplified reporting of administrative steps.
Not a standalone liquidation: This is a subset of CVL for small businesses. This type of liquidation has been in place since 2021.

Creditors’ Voluntary Liquidation (CVL)

When used: The company is insolvent and can’t pay its debts. Company directors or shareholders initiate the process.
Who appoints the liquidator? Directors or shareholders by resolution, and creditors either confirm or reject the choice.
Process: A liquidator takes control of the company, sells assets, investigates affairs, and pays creditors in a legal order.
This is the most common form of insolvency liquidation in Australia.

Court Liquidation (Compulsory Liquidation)

When used: A creditor applies to the court, usually due to unpaid debts, asking for the company to be wound up.
Who appoints the liquidator? The court, by making a formal order, usually after a hearing.
Process: Similar to CVL; the liquidator sells assets, investigates, and distributes proceeds.
This is common when a company fails to respond to statutory demands or has triggered court claims.

Members’ Voluntary Liquidation (MVL)

When used: The company is solvent and able to pay all debts, but members, company directors, or shareholders decide to close the company and distribute its assets.
Who appoints the liquidator? Members or shareholders, after the company directors make a solvency declaration.
Process: Liquidator distributes remaining assets to shareholders after all debts are settled.
This is often used as a tax-effective closure for solvent groups or winding down a business post-sale.

Common Questions

Here you will find quick links to commonly asked liquidation questions. Our goal is to provide you with a clear pathway to financial freedom.

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Step By Step Process

When your company's debts become overwhelming and there's no viable way to pay creditors, company liquidation can offer a path to a clean slate.

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Save Your Business From Liquidation

We understand that your company is not just a job; it’s an investment. We know how to save a company from a financial crisis offering tailored solutions for any size enterprise with their eyes on the bottom line.

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Simplified Company Liquidation

Simplified liquidation is an ASIC law designed for struggling businesses as a faster, low-cost way to wind up an insolvent company. Expect a faster turnaround and a greater certainty of when the process will end.

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Types of Liquidation

Type		Who Starts It	When Used			Who Appoints a Liquidator
Simplified Liquidation		Small company officers	For CVL eligible companies with less than $1m in liabilities			As per the CVL process
Creditors’ Voluntary (CVL)	Directors/Shareholders			When insolvent, creditors need to be paid	Directors/Shareholders, confirmed by creditors
Court (Compulsory)	Creditors (via court)			When insolvent, by court order	The court
Members’ Voluntary (MVL)	Members/Shareholders			When solvent, for voluntary closure	Members/Shareholders

Customer Reviews

The team at the Insolvency Group has been excellent. In a difficult situation, they made me feel very relaxed and they were able to explain the process to me, so I understood it fully and so that there were no unexpected hurdles..

Our family company failed, and I was stranded with nowhere to go. The team at the Insolvency Group came to my rescue and guided me through the company's liquidation. Yes, the liquidation hurt, but the team ensured the process was as smooth as possible..

I cannot recommend them highly enough. .

We dealt with one of the teams at the Insolvency Group twice. The first time was six years ago when he worked for another firm, and we found him to be very approachable and knowledgeable. He guided us through the Voluntary Administration process, and we were paid 100 cents in the dollar.

After getting back on our feet, we again experienced cash flow issues following the collapse of several significant debtors of our company.

We searched for Andrew because we wouldn't have trusted anyone else to assist us. After an extensive review, he advised that liquidation was the only alternative. He explained why the Voluntary Administration wouldn't work in our current situation, and we appreciated this honest assessment.

So, in the end, the liquidation was conducted professionally, thoroughly and with minimal fuss. .

The team at the Insolvency Group reviewed the business and suggested we trade on, and the business could be sold as a going concern. He indicated that selling as a "going concern" would likely produce the best return for the creditors.

He advised for the trade-on to work efficiently, the Landlord would need to be on board; however, the Landlord indicated that the arrears were too significant and terminated the lease.

The team at the Insolvency Group continued to make representations to the Landlord, but ultimately, it was agreed to simply liquidate the company. Despite my continued ill health, the team had an understanding of my health issues and showed empathy throughout.

I have heard of horror stories involving company liquidation, but this was not the case with the team at the Insolvency Centre.

I have been a small business operator for the past 15 years and enjoyed a moderate level of success for the most part but recent times and government policies have all but destroyed my industry.

This left me with a level of debt that I just could not trade my way out of , no matter what I tried. I found myself wallowing in debt , suffering depression and not wanting to talk to anybody about my problems.

Then I was referred to Mr Andrew Bell to talk about bankruptcy to avoid company director personal liabilities. This was something that I knew very little about, other than what I have been told by uninformed people, which as it turns out, they knew nothing about bankruptcy either.

I had all these misconceptions of the penalties and limitations that go along with bankruptcy of which Andrew set me straight on. Bankruptcy of old meant horrible things and that's what stopped me from seeking help previously but after Andrew explained the current laws and regulations involved with a person filing for bankruptcy in 2019, I felt a level of comfort that I was doing the right thing to save my small business and my sanity.

I recommend anyone feeling like I did, to please give Andrew a call and have a chat about where they currently find themselves and what can be done to alleviate the stress that unpayable debt brings. In short, Mr Andrew bell is a very approachable person who actually cares about the situation of the people with whom he speaks with and in this day and age, that's an uncommon thing.

I would not hesitate to refer Andrew to anyone else suffering in silence as now I feel that I have my life back and for that I will be forever grateful. Thank you Mr Bell, thank you.

Andrew was a steadying hand with his advice. Showing that things aren't as bad as first thought nor any obstacle insurmountable. If you have questions needing answers, Andrew is the person to ask. Thanks for your advice Andrew.

Andrew Bell

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With over 30 years of experience in debt solutions and company liquidation in Australia, Andrew can find a solution for you.

“Nothing is more satisfying to me than knowing that I’ve helped someone get back on their feet by guiding them through the Company Liquidation Process. Rest assured, you’re in good hands with me as we solve your financial problems together.”

With fees starting from $850, we offer exceptional value for our professional services. Why not contact us now to speak with one of our experienced specialists?

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