In early 2025, a labour hire company servicing the mining industry found itself on the brink of collapse. The ATO had commenced winding up proceedings, and with $5.3 million in tax debt on the line, 36 jobs were at risk. The company’s director, a seasoned operator on site and highly respected by clients and staff, found himself overwhelmed and unsure of what to do next.

The root cause? A combination of personal and professional blind spots that had gone unchecked for too long.

The Risks That Went Unseen

Like many labour hire businesses, this company operated on high-volume invoicing and large payroll cycles. Even small issues can escalate quickly in that environment, particularly when tax obligations are not actively managed.

During a difficult divorce, the director became distracted from the financial management of the business. He was the first to admit his strengths lay in operations and people management, not in running the back office. To cover that gap, he engaged an external accountant for $5,500 per month to provide "CFO services" that were supposed to keep the business on track.

In reality, the accountant had not reconciled the accounts or lodged any BAS statements for nearly two years. The business was incurring significant ATO liabilities, month after month, without anyone monitoring the exposure.

When the ATO launched formal winding up proceedings, the director turned to the accountant for help. The accountant’s response was simply that he did not know what to do.

Breaking Down the Complexity

Getting the Right Team in Place

The director was referred to Matt Hudson at SV Partners, who quickly recognised the that the business could benefit from appointing him as the company Administrator on a trade-on basis, which would allow the business to restructure the debt and emerge from the financial distress. 

To facilitate this strategy, Matt referred Thryvv.io to the director.  for 3 reasons:

1. To determine if the business was fundamentally viable.
2. To build a proposal that would allow it to continue operating through a voluntary administration process
3. To implement the governance structure that the director needed to ensure it would avoid a repeat of the issues in the future.

Ultimately, our role was to act as the Director’s Advocate.

We started by breaking down the business into its financial and operational components. Once we understood its true position, we confirmed that the business was cash flow positive and had strong contract value in place.

That clarity gave the administrator the confidence he needed to keep the business trading.

Developing a Restructure That Worked for Everyone

With that foundation in place, we prepared a Deed of Company Arrangement (DOCA) proposal that would allow the director to regain control of the business while also meeting the best interests of creditors.

Key elements of the DOCA included:

• 100 percent repayment of all priority creditors
• A formal advisory board structure to provide oversight
• Compliance monitoring through our DirectorShield platform
• Retention of all 36 staff
• A better return to creditors than liquidation would provide

Dealing with ATO Silence and Delays

Despite multiple attempts to engage the ATO, we faced ongoing delays and unanswered requests. The administrator was required to attend court three times to seek adjournments, supported by detailed financial reports prepared by Thryvv.io. These reports were critical in demonstrating that the business was viable and that liquidation would destroy more value than a structured trade-on.

After nearly three months of uncertainty, the DOCA was approved and the business was handed back to the director.

Looking Ahead with Support and Clarity

The business is now operating with proper oversight and financial management. We remain involved in an advisory board capacity, using DirectorShield to manage compliance and provide regular reporting.

The director has expanded operations, secured new contracts, and is now managing more than 100 staff. Most importantly, he is no longer carrying the burden alone.