Quick answer
Voluntary administration hands full control of your company to an administrator. ASIC's July 2026 review of VAs found 44% ended in a deed of company arrangement and 56% in liquidation — and for companies with liabilities of $1 to $250,000, only 15.4% reached a deed. For many smaller businesses, refinancing the pressing debts, a small business restructuring, or a negotiated settlement keeps more in the owner's hands.
Key points
- In voluntary administration, the administrator takes full control of the company.
- ASIC's 2026 review: 44% of VAs reached a deed; 50% went to voluntary liquidation and 6% to court liquidation.
- Smaller companies were far less likely to reach a deed.
- Refinance, restructuring and funded settlements keep directors in charge.
- VAs ending in a DOCA
- 44% (ASIC, July 2026)
- VAs ending in liquidation
- 56% combined
- DOCA rate, $1–$250k liabilities
- 15.4%
- Median DOCA dividend
- 11.5 cents in the dollar
Voluntary administration is often presented as a lifeline: a pause from creditors while a plan is worked out. Sometimes it is. But it’s also a formal insolvency process in which you hand over the keys, and the evidence on how it ends is now clearer than it’s ever been. Before appointing anyone, it’s worth looking at what the numbers say — and at the funded alternatives that leave you in charge.
What happens to my company in voluntary administration?
Under ASIC’s description of the process:
- A registered liquidator, the voluntary administrator, is appointed by the directors and takes full control of the company.
- Unsecured creditors generally can’t start or continue claims without the administrator’s consent or the court’s permission.
- The first creditors’ meeting is held within eight business days of the appointment.
- The second meeting, about five weeks later, decides the company’s future: a deed of company arrangement (DOCA), liquidation, or — rarely — handing the company back to the directors.
A DOCA is a binding arrangement between the company and its creditors, often involving creditors accepting part of what they’re owed.
What did ASIC’s 2026 review find?
In July 2026, ASIC published a review of 3,528 grouped VA appointments, covering 5,020 companies, that entered administration between 1 July 2021 and 30 June 2025. The findings:
| Outcome | Share of VA appointments |
|---|---|
| Entered a deed of company arrangement | 44% |
| Entered voluntary liquidation | 50% |
| Entered court liquidation | 6% |
Size mattered. Among appointments with liabilities over $10 million, 48.3% resulted in a DOCA. Among those with liabilities of $1 to $250,000 — the size of many owner-run businesses — only 15.4% did.
For creditors, the median dividend from wholly effectuated DOCAs was 11.5 cents in the dollar. Nearly half of approved DOCAs involved the company continuing to trade, which shows that when a deed works, it can work well. But for a small company, the odds of reaching that point are low.
What are the funded alternatives?
If the business is viable once its pressing debts are dealt with, these routes keep the directors in control:
- Refinance the pressing debts. Pay the ATO and urgent creditors with a property-secured loan ($20,000 to $5,000,000) or unsecured cash-flow funding ($5,000 to $500,000). See business debt consolidation.
- Fund a settlement. Many creditors would rather take a discounted lump sum now than wait for a dividend. Given a median DOCA dividend of 11.5 cents, a funded offer can look attractive. More on creditor settlement funding.
- Small business restructuring. For companies with total liabilities of no more than $1 million, directors stay in control while a practitioner prepares a plan over 20 business days. Employee entitlements must be paid and lodgements up to date. Funding can pay those entitlements or fund the plan’s contribution.
- Sell a non-core asset to reduce debt and fund the rest. Our guide on selling assets or borrowing compares the two.
If you’d like to test whether any of these fit, a short enquiry gets a lending specialist looking at it, without a credit check.
What about my personal position as a director?
Two points often get lost in the rush to appoint an administrator:
- Director penalty notices. A non-lockdown DPN is remitted if an administrator is appointed within the 21 days. A lockdown DPN isn’t — only payment clears it.
- Personal guarantees. A guarantee you’ve signed for a lease, supplier or loan generally survives the company’s administration, even if enforcement is paused for a time.
So administration may protect the company from creditors for a while, but it may not protect you. Paying the tax debt, by contrast, deals with the company and the DPN at once.
An illustrative example
Illustrative only. A Brisbane fit-out company with liabilities of around $400,000, mostly ATO debt and two suppliers, is advised to consider voluntary administration. The director has a lockdown DPN, so administration wouldn’t clear his personal liability. Instead, he uses equity in an investment property to pay the ATO in full, and funds lump-sum settlements with both suppliers. The company keeps trading, and the director’s exposure is gone.
When is administration the right choice?
Sometimes it is: when the business isn’t viable, when the debts are far larger than any security, or when a complex restructure needs the protection of a formal process. An honest funder will tell you if a refinance won’t work. What matters is choosing administration because it’s the best option — not because it was the first one anyone mentioned.
The avoid liquidation page has a checklist for judging viability, and safe harbour explains the protection available to directors developing a better-outcome plan.
What should I ask anyone recommending administration?
- What outcome do you expect, and how likely is it for a business our size?
- Will a DOCA be proposed, and what would it offer creditors?
- What happens to my director penalty exposure and personal guarantees?
- What will the process cost, and who pays?
- Have you considered whether the debts could be refinanced or settled instead?
Want to check the funded alternative first?
A few days spent testing a refinance or settlement rarely costs anything, and an appointment can’t be undone. If there’s a way to keep the business in your hands, we’d like to help you find it.
The enquiry takes about a minute. There’s no credit check at the first-enquiry stage, and your details aren’t circulated to a pile of lenders. A real person looks at the debts, the security and the deadlines and calls you. Please be precise about the numbers and dates, so we can give you a straight answer quickly.
Frequently asked questions
What are the alternatives to voluntary administration?
The main alternatives are refinancing or restructuring the company's debts, negotiating settlements with creditors, raising new equity, selling assets, or, for eligible small companies, a small business restructuring where directors stay in control. Which one fits depends on whether the business is viable once its pressing debts are dealt with.
How often does voluntary administration save a company?
ASIC's July 2026 review of VAs between 2021 and 2025 found 44% of appointments resulted in a deed of company arrangement, while 50% moved into voluntary liquidation and 6% into court liquidation. For appointments with liabilities of $1 to $250,000, only 15.4% resulted in a deed.
Who controls my company during voluntary administration?
ASIC explains that the voluntary administrator, a registered liquidator appointed by the directors, takes full control of the company. The first creditors' meeting is held within eight business days and the second about five weeks later.
Does voluntary administration clear a director penalty notice?
For a non-lockdown DPN, appointing an administrator within the 21 days remits the penalty. For a lockdown DPN it doesn't — only payment does. Personal guarantees also generally survive the administration.
What is small business restructuring?
It's a process for eligible companies with total liabilities of no more than $1 million, where directors keep control while a restructuring practitioner helps prepare a plan for creditors to vote on. Employee entitlements must be paid and tax lodgements up to date.