Winding-Up Application Filed: What It Means and What You Can Do

19 July

Winding-Up Application Filed: What to Do Next | Switchboard

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Winding-Up Application Filed: What It Means and What You Can Do

A winding-up application is the point where unpaid debt becomes a public court problem. This guide helps Australian company directors identify the document, work out what must be done before the first hearing, understand who will find out and what follows, deal with an ATO application, compare payment, opposition and restructuring, and assess whether property-secured finance is a genuine solution or only a costly delay. It also covers what happens after the case ends.

Published 19 July 2026 / Reviewed 19 October 2026 / Nick Lim, FBAA Accredited Finance Broker / General information only

Quick Answer

A winding-up application asks a court to put a company into liquidation. The first hearing is usually 2 to 6 weeks after filing, and the order can be made that day. Directors keep control until any order, but get insolvency advice before paying creditors, moving assets or granting security.

Also called: winding-up petition, wind up notice, creditor's winding-up application, application for a winding-up order, liquidation application.

Start here: is it a statutory demand, winding-up application, published notice or order?

The first job is to identify the stage, because the deadline and the available response change completely. Business owners often search “wind-up notice”, “winding-up petition”, “liquidation notice” or “ATO wind-up” for several different documents. The name used in a search result is less important than the document actually received.

Which winding-up document or event are you dealing with?
What you have	What it usually means	What to do now
Creditor's statutory demand	This is normally the earlier 21-day demand stage. A court application may not yet have been filed.	Record the service date and obtain legal advice immediately. The set-aside deadline is strict.
Originating process or application for winding-up order	A court proceeding has been filed and a hearing date should appear on the document.	This guide applies. Send the complete court bundle to an insolvency solicitor today.
ASIC Published Notices entry	The application is public. You may also have been served at the company's registered office.	Find the court file and hearing date, check the registered office and obtain the served documents.
Winding-up order or liquidator appointment	The court has already ordered liquidation and control has moved to the liquidator.	Contact the liquidator and an insolvency solicitor immediately. The pre-hearing options on this page are no longer the ordinary route.
ATO warning, cancelled payment plan or debt letter only	The company may still be before the statutory-demand or court stage.	Engage early with the ATO, your tax adviser and a debt adviser. Do not wait for formal proceedings.

Not sure what was served? Check the document heading, court name, file number, filing date and hearing date. Also check the company's registered office, the Federal Court listing and ASIC's Published Notices register. Do not assume that not personally seeing the documents means the company was not served.

What is a wind up notice?

A wind up notice is the everyday name for a creditor's court application to have a company wound up in insolvency, or for the public notice of that application; it is not a separate legal document. The phrase is used for documents at different stages:

The creditor's statutory demand. The earlier stage, before any court application. The court can presume insolvency when a company ignores a statutory demand.
The originating process. The court application for a winding up order, served on the company.
The notice of application for winding up order. The public notice of that application, published on ASIC's Published Notices website.
The winding up order. Made only by the court, at a hearing.

The stage table above shows what to do at each point.

What does a notice of application for winding up order show?

It shows the company, the applying creditor, and when and where the court will hear the case. Under the Federal Court (Corporations) Rules 2000 (Form 9, rule 5.6), the notice names the company and its ACN or ABN, the plaintiff creditor, the filing date, the court and its address, and the hearing date and time, and gives the plaintiff's address for service. It tells anyone who intends to appear that they must file a notice of appearance. It is published at least 3 days after the application is served and at least 7 days before the hearing. To check it is genuine, confirm the court file and listing with the named court and the ASIC entry, and do not deal with anyone offering to make the notice go away.

Where can I find ASIC wind up notices?

ASIC wind up notices are on ASIC's Published Notices website, which anyone can search without registering. Search by company name without Pty or Ltd, or by a former name. The site holds notices published from 1 July 2012. A winding up application notice stays there as a historical record even if the application is later withdrawn or dismissed, and no notice of the withdrawal or dismissal has to be published.

What should a director know straight after a winding-up application is filed?

A filed application does not automatically put a liquidator in control that day, but it changes the risk around every important decision. These are the short answers directors, accountants, spouses and business partners normally need before they can work out the next move.

What should a company know immediately after a winding-up application is filed in Australia?
Question	Direct answer
What is a winding-up application?	It is a creditor's court request to wind up the company in insolvency and appoint a liquidator.
Are directors still in control?	Usually yes, until the court makes an order or appoints a provisional liquidator. That does not make post-filing transactions safe.
How long is there?	Use the hearing date on the originating process. Federal Court applications are commonly listed about 2 to 6 weeks after filing; the six-month rule is an outer limit for determining the proceeding, not extra response time.
Who will find out?	Anyone can see it once ASIC publishes the notice, at least 7 days before the hearing. Banks, suppliers, credit reporting bodies and unsolicited advisers often notice quickly.
Can the company pay the debt?	Yes, but obtain a written payout including costs, settle through solicitors and check whether another creditor may seek substitution.
Can the company keep trading?	It may continue while directors remain in control, but directors must address insolvent-trading risk and obtain advice about payments and new debts.
Can wages and suppliers still be paid?	Do not assume ordinary payments are automatically protected. If an order is later made, post-filing dispositions may be void unless the court orders otherwise.
Can assets be moved to protect them?	Not without legal advice. Post-filing transfers may be void, and transfers that put assets beyond creditors' reach can be recovered and expose the people involved to penalties.
Will the bank account be frozen?	Filing does not itself create a universal automatic freeze, but a bank may restrict an account under its terms or risk controls. Confirm the account position rather than relying on it.
Can finance stop the application?	Sometimes, where the debt is payable, the business remains viable, sufficient security exists and there is a credible exit. A loan is not a cure for insolvency.
Does paying the named creditor end it?	Not always. Another eligible creditor may ask the court to be substituted as applicant under section 465B.
What if the application is withdrawn or dismissed?	Keep the sealed outcome, verify ASIC notification and rebuild banking, supplier and cash-flow arrangements. The original public notice stays on the record and may still need explaining.
What happens at the first hearing?	The first return date can be the final hearing. The court may make the winding-up order, adjourn, dismiss or give directions, depending on the evidence and the company's response.
Does an ATO payment plan stop the case?	No, not automatically. Any arrangement must be coordinated with the ATO's legal representatives and the listed court proceeding must still be formally dealt with.
Can the hearing be adjourned while finance is arranged?	Possibly, but an enquiry or unsigned term sheet is not a right to more time. The court will expect a proper evidentiary basis for any adjournment request.
What proves the company is solvent?	Evidence must address whether every debt can be paid when due. Bank statements, aged ledgers, cash-flow forecasts, tax records, available facilities and independent accounting evidence may all matter.

Who can file a winding-up application in Australia?

Under section 459P of the Corporations Act 2001, a winding-up application can be filed by the company, a creditor, a contributory, a director, a liquidator or provisional liquidator, ASIC or a prescribed agency. A person who is a creditor only because of a contingent or prospective debt, a contributory, a director and ASIC require the court's leave under section 459P(2). Prescribed agencies are not listed in that leave requirement. In practice most applications are filed by an unpaid creditor, often the ATO, relying on the company's failure to comply with a statutory demand and the resulting presumption of insolvency.

The application is a formal court proceeding seeking an order that the company be wound up in insolvency and a liquidator appointed. Search results use several labels for the same or adjacent stages: winding-up petition, wind-up notice, creditor's petition, liquidation application and application for a winding-up order. “Petition” is common UK language, so Australian directors should check that advice refers to the Corporations Act, an Australian court and ASIC's public notices rather than the UK Gazette or HMRC.

A court-ordered winding up is a form of liquidation. It is not the same as a healthy company choosing a solvent members' voluntary winding up, and it is not the same as the statutory demand that usually came before it.

How does an unpaid statutory demand lead to a winding-up application?

A creditor can commonly rely on an unpaid statutory demand to ask the court to presume that the company is insolvent. A company normally has 21 days after service to comply with the demand or file and serve an application to set it aside. If the period expires without compliance, the presumption under section 459C can be relied on for three months.

The statutory-demand threshold is currently $4,000, but the critical fact for a company already facing an application is not the threshold; it is whether the demand was validly served, when the 21 days expired and which arguments remain available. Under section 459S, grounds that could have been raised in a set-aside application may be restricted at the winding-up stage.

Can a creditor apply without a statutory demand?

Yes. The demand route is the most common because non-compliance gives the creditor a presumption of insolvency under section 459C, but a creditor can apply without one if it can prove the company is actually insolvent. That usually means evidence that the company is not paying its debts when they fall due. A company that never received a demand should not assume the application is invalid for that reason alone.

The 21-day stage may already be over

Do not treat the hearing as a second statutory-demand deadline. If an originating process has been filed, the company is now dealing with a court proceeding. Give the demand, proof of service, originating process, affidavits and hearing date to an insolvency solicitor so the available grounds can be assessed properly.

Where the ATO is the creditor, its guidance says a company that does not comply with a statutory demand may face a Federal Court winding-up application. An ordinary offer to start a payment plan after proceedings are filed should not be assumed to end the case without the applicant's and court's formal steps (ATO, If you don't pay).

The earlier deadline, service questions and set-aside stage are covered separately in the statutory demand 21-day guide.

What happens after a winding-up application is filed?

The application is served on the company, notified to ASIC, published on ASIC's Published Notices website and listed for a hearing, and the hearing date printed on the originating process is the practical deadline that controls the response. Federal Court guidance says corporations applications are usually listed about 2 to 6 weeks after filing, and the company should not assume the first return date will automatically be adjourned.

What are the Federal Court deadlines after a winding-up application is filed?
Step	Deadline
Serve the company	The sealed originating process and supporting affidavits must be served within 14 days after filing and at least 5 days before the hearing.
Notify ASIC	The applicant must lodge notice with ASIC by 10:30 am on the next business day after filing.
Publish the notice	On ASIC's Published Notices website, at least 3 days after service and at least 7 days before the hearing.
Serve the liquidator's consent	The applicant obtains a registered liquidator's consent and serves it at least 1 day before the hearing.
First return date	The court may make final orders that day. Any adjournment is discretionary, so evidence and proposed orders should be prepared beforehand.

Those are Federal Court procedural steps. A state or territory Supreme Court may have different forms or practice requirements, so follow the court named on the documents. Listing times in state Supreme Courts can be longer: practitioner commentary on the Supreme Court of Queensland, for example, puts the hearing at around 6 to 10 weeks after filing. Always work from the date on the originating process. The statutory six-month period in section 459R is the outer period in which the application must generally be determined; it is not a six-month grace period for the company.

The Federal Court sets out the filing and hearing process in Corporations Information Sheet 1 and its Guide for Practitioners and Parties.

Who will find out about the winding-up application, and what happens next?

Once ASIC publishes the notice, the application is public, and banks, suppliers, credit reporting bodies and unsolicited advisers often notice it within days. The court case is only one front. The commercial reaction to the public notice can damage a viable business faster than the hearing itself, so plan for it the day the company is served.

Who may find out about a winding-up application, and how should the company respond?
Who	How and when they usually find out	What the company should do
Anyone searching ASIC	The notice is published at least 7 days before the hearing and can be searched by company name.	Assume it is public. Prepare one short, accurate explanation and use it consistently.
Unsolicited advisers, lenders and debt negotiators	Often by phone or email soon after publication, because some firms monitor the register.	Check registration before engaging anyone. Do not sign documents, pay upfront fees or move assets on their advice; route offers through your solicitor.
Commercial credit reporting bodies	They commonly record court actions and published notices against companies.	Expect lenders and suppliers to see it. Keep the sealed outcome so the record can be explained later.
The company's bank	Through the notice, credit monitoring or facility reviews.	Ask the bank in writing for its position on accounts and facilities. Do not move funds between banks to avoid a restriction without legal advice.
Suppliers and trade creditors	Through credit alerts or the notice; some move the account to cash on delivery or stop supply.	Identify the suppliers the business cannot trade without and get advice on which payments are protected.
Landlord and insurers	Through the notice, or because the lease or policy requires the company to tell them.	Check notification and default clauses in the lease and policies before the hearing.
Staff	Often second hand, from suppliers, customers or the notice.	Tell them accurately what has been filed and that the company is taking advice. Do not promise outcomes.
Other creditors	Through the notice; some decide to support the application or seek to be substituted.	Map every material creditor before paying only the applicant.

Check who you are dealing with

Anyone who offers to make the notice disappear, or tells you to move assets into a new company or a family member's name, is putting the directors at risk. Check that an insolvency adviser is a registered liquidator on ASIC's professional registers, or that a lawyer holds a current practising certificate, before sharing company information or paying fees.

What happens at the first winding-up hearing?

The first return date can be the day the court makes the winding-up order. Federal Court corporations matters are listed for hearing at the first return date, final orders may be made then, and a company should not assume the proceeding will automatically be adjourned. If the company wants more time or intends to oppose, the legal and evidentiary work should begin before the hearing rather than in the courtroom.

What can happen at the first winding-up hearing in the Federal Court?
Possible outcome	When it may happen	What the company needs to understand
Winding-up order	The application is unopposed and the applicant proves standing, the insolvency presumption and the required procedural steps.	A liquidator can be appointed that day and control of the company then moves away from the directors.
Adjournment	The court is persuaded that more time is justified, for example for a properly evidenced settlement, finance, administration or restructuring step.	An adjournment is discretionary, may carry another costs order and should not be treated as automatic even where the applicant consents.
Opposition directions or contested hearing	The company has filed grounds, affidavits or solvency evidence and the matter cannot be decided immediately.	Late evidence may not be accepted. The court timetable and section 459S restrictions can determine what may still be argued.
Dismissal, withdrawal or consent outcome	The debt and costs have been resolved and the applicant and court are ready to formally end the proceeding.	Payment by itself is not the court outcome. Confirm the orders, discontinuance and ASIC notification required.
Adjournment for administration or restructuring	A valid appointment has occurred and the relevant statutory test supports allowing that process to continue.	A last-minute appointment does not guarantee time. The practitioner needs a credible pathway and evidence about creditors' interests.

Does the company need a lawyer?

In the Federal Court, a corporation must be represented by a lawyer unless the Court gives leave otherwise. State and territory Supreme Court rules and practices can differ, so the company should follow the court named on the originating process and obtain insolvency legal advice immediately.

What should be ready before the first hearing?

Appearance and strategy:The company's lawyer, notice of appearance, grounds of opposition or proposed consent orders, depending on the chosen path.

Court evidence:Affidavits and supporting material filed within the applicable timetable, not merely documents brought to court on the day.

Creditor position:The applicant's written payout, legal costs, the wider creditor list and whether any supporting or substituting creditor is likely.

Proposed solution:Completed settlement steps, credible finance evidence, a practitioner appointment or properly prepared solvency case.

Requested order:A clear explanation of what the company asks the court to do and why that outcome is justified now.

The Federal Court's Guide for Practitioners and Parties says final orders may be made at the first return date and adjournments are discretionary. Its starting-a-matter guidance explains the representation rule for corporations.

What changes for directors once a winding-up application is filed?

Directors usually retain control before the order, but section 468 changes the risk attached to company money, property and new security. If a winding-up order is later made, dispositions of company property made after the winding up is taken to have commenced may be void unless the court orders otherwise. For a court-ordered winding up, commencement can relate back to the application date under section 513A.

The company also loses the option of putting itself into voluntary liquidation. Under section 490, once a winding-up application has been filed the company cannot resolve to wind up voluntarily without the court's leave. The formal appointments directors can still make themselves are voluntary administration or, for an eligible company, small business restructuring, and the court still decides whether the hearing is adjourned.

Work that should begin now

Engage an insolvency solicitor and registered practitioner
Confirm the hearing date, applicant and exact payout
Build a complete creditor and cash-flow position
Preserve books, records, emails and bank information
Decide whether the business is actually viable after the immediate debt is dealt with

Actions that need advice first

Paying selected or related creditors
Transferring cash, vehicles, equipment or receivables
Granting a mortgage, caveat, GSA or other new security
Selling assets to a director, spouse or related entity
Incurring fresh debt when the company may be insolvent

Void is not the same as voidable

The section 468 wording is that a post-commencement disposition is void unless the court otherwise orders. “Voidable transactions” are a separate insolvency concept. Ask the company's lawyer whether a proposed payment needs a validation order or another protective step before it is made.

Can you move assets, repay family or start a new company before the hearing?

Not safely without legal advice. Company property moved after the application is filed may be void if an order is made, and transfers that put assets beyond creditors' reach can be recovered by a liquidator and expose the people involved to penalties. These are the moves directors are most often tempted to make in the weeks before a hearing, and the reason each one can backfire.

What happens if directors move assets or money after a winding-up application is filed?
Tempting move	Why it is risky
Transfer a vehicle, equipment or property to a spouse, director or related entity	It may be void under section 468 if an order is made. A transfer for less than market value that hinders creditors can also be recovered as a creditor-defeating disposition.
Repay a director's loan or a family member first	A liquidator may recover it as an unfair preference or treat it as a void post-filing payment, and it can be used as evidence against the directors.
Move cash to a new account or another bank	The money is still company property, the move can engage section 468, and it can conflict with the existing bank's facility terms.
Start a new company and move the customers, staff or stock across	Starting again is not automatically unlawful, but taking the old company's business without paying market value is the pattern regulators treat as illegal phoenix activity, and people who facilitate it can face penalties.
Resign as director	Resignation does not erase liability for what happened while the person was a director, and a resignation that leaves the company with no director may have no effect.

There are legitimate alternatives. An asset can be sold at independently supported market value with legal advice, and the court can validate transactions that genuinely preserve a viable business. The difference is that the protection is obtained before the money or asset moves, not argued for afterwards. ASIC's insolvency for directors guidance sets out the duties that apply.

Can the company keep trading, use its bank account and pay wages or suppliers?

There is no single yes-or-no answer for every payment after filing. Directors normally continue to manage the company until a winding-up order or provisional-liquidator appointment, but they must also prevent insolvent trading and consider section 468 before the company pays money or grants security.

What changes for ordinary business operations after a winding-up application is filed?
Issue	Practical position	Question to ask today
Continuing to trade	The company may continue while directors remain in control, but new debts can increase insolvent-trading exposure if the company cannot pay debts when due.	Is there a documented basis for believing the company can remain solvent or a properly advised restructuring path?
Bank account	Filing does not create one automatic rule for every bank, but a bank may restrict an account under facility terms, set-off rights or risk controls.	Has the bank seen the notice, and what written position has it taken on account access and facilities?
Wages and super	Employee obligations remain serious, but post-filing payments may still engage section 468 if an order is later made.	What should be paid, from which account, and is court validation or another legal step required?
Suppliers and landlords	Selective payments can create legal and commercial risk, while stopping all payments can destroy a viable business.	Which payments preserve value for creditors and how should that be evidenced?
New finance or security	Emergency finance may be possible, but new security over company assets can engage section 468 and existing-security restrictions.	Who owns the security, what consents are needed, and how will settlement be legally protected?

Courts can make validation orders for transactions that should be protected, including transactions supporting the continuation of a viable business, but that protection is sought through legal process. It should never be assumed after the money has already moved.

If the bank has separately restricted or recalled a facility, use the bank-recalled facility and overdraft guide for that parallel workstream.

What should directors say to their bank, staff, suppliers and landlord?

Communicate accurately and selectively with professional advice, without promising that court proceedings are already resolved. Identify imminent payroll, rent, supply interruptions and contractual default or notification clauses. Confirm the position with the insolvency solicitor before transferring assets, granting a fresh charge, favouring connected parties or making an extraordinary payment.

Prepare one cash-flow schedule showing which obligations fall due before the hearing and which would remain after any settlement. Employees may have urgent wage and superannuation questions; the business should obtain employment and insolvency advice rather than promising that all obligations can be met.

What should a director do first after being served with a winding-up application?

Confirm the legal stage and hearing date, send the court documents to an insolvency solicitor, then establish the real debt and whether the company is viable before looking for money. That sequence prevents a director from solving the applicant's debt while missing another creditor, a service problem, a personal DPN or a business that remains insolvent after the payout.

Confirm the caseRecord the court, file number, applicant, filing date, service date and hearing date. Download or collect the complete court bundle.
Engage the legal leadSend the documents to an insolvency solicitor. Ask what must be filed, served or negotiated before the hearing.
Build the whole creditor pictureList every creditor, secured debt, tax account, employee entitlement, lease, guarantee and legal claim. Substitution risk makes this essential.
Test viability, not just equityPrepare current bank statements, aged receivables and payables, financials, BAS and a 13-week cash-flow forecast. A property with equity does not prove the company is solvent.
Choose the correct routePay or settle, oppose, appoint an administrator or restructuring practitioner, seek an adjournment, or prepare for an orderly liquidation.
Bring in finance only when it fitsA broker should work behind the lawyer and insolvency adviser, using a confirmed payout and a credible exit rather than racing ahead of the legal strategy.

What can still be done depending on how many days are left?

The fewer days left, the fewer options remain realistic, because settlement, finance, evidence and practitioner appointments all depend on other people's timetables. Work out where the company sits today.

What should be done at each point before a winding-up hearing?
Time left	What is still realistic	What must happen now
3 weeks or more	Every route: payment or settlement, opposition, administration or restructuring, or a property-secured payout.	Brief the solicitor, get the written payout, build the creditor list and cash-flow forecast, and start any lender file and valuation immediately.
1 to 3 weeks	Settlement with funds that are already available or well advanced, opposition if evidence can be filed in time, a practitioner appointment.	File the notice of appearance, follow the evidence timetable, confirm owner consents for any security and fix a dated settlement path.
Under 7 days	Only steps already well advanced. A new finance enquiry is unlikely to complete and is weak evidence for an adjournment.	Settle if cleared funds exist, file adjournment evidence through the solicitor, or take urgent practitioner advice on administration.
Hearing today or tomorrow	Consent orders if the matter is settled, or an adjournment request supported by evidence already filed.	The company's lawyer must appear. Directors should prepare for the possibility that the order is made.
Order already made	The pre-hearing options no longer apply. A stay or termination under section 482 is exceptional.	Cooperate with the liquidator, preserve records and take urgent legal advice on personal exposure.

Documents that save time: originating process, affidavits, statutory demand and service material; current payout including legal costs; complete creditor list; ATO integrated-client account and lodgement status; six to twelve months of bank statements; recent financials and BAS; aged receivables/payables; property title, valuation and mortgage statements; and the proposed repayment or refinance exit.

How can a company stop a winding-up application?

There are four ways to stop or pause a winding-up application: pay or settle the debt and costs so it is withdrawn or dismissed, oppose it on solvency or other grounds, appoint an administrator or restructuring practitioner and seek an adjournment, or obtain an adjournment while a credible payout completes. Which one fits depends on whether the debt is owed, whether the company can prove solvency, whether a formal restructuring is viable and whether any payout leaves the business healthy.

Which response may fit the company's actual situation?
Situation	Possible path	What must be true
Debt is correct and cash is available	Pay the confirmed payout and costs through solicitors, then seek withdrawal or dismissal.	The wider creditor position has been checked and the payment is legally protected.
Debt is correct but cash arrives later	Negotiate settlement, an adjournment or property-secured payout.	The applicant accepts the pathway, the court timetable is covered and the company remains viable.
Company says the debt or application should not succeed	Oppose the application.	A lawyer identifies an available ground and evidence can be filed in time; section 459S restrictions are addressed.
Company is insolvent but the business may be saved	Voluntary administration or eligible small business restructuring, with an adjournment application.	A registered practitioner supports the appointment and the court is satisfied of the relevant statutory test.
Company cannot be rescued responsibly	Consent, cooperate or consider another orderly insolvency route advised by the practitioner.	Directors preserve records, stop worsening creditor losses and meet obligations to the liquidator.

Who normally leads each response and what is the main risk?
Response	Who leads it	Main cost or risk
Pay or settle	Insolvency solicitor, with accountant and broker if funding is required.	Paying only the named applicant may not end the case; post-filing payments need legal protection.
Oppose	Insolvency solicitor and, commonly, an expert accountant.	Evidence and legal costs, an adverse costs order and a winding-up order if the opposition fails.
Voluntary administration	Registered voluntary administrator and insolvency solicitor.	Control moves to the administrator and an adjournment is not automatic.
Small business restructuring	Registered restructuring practitioner and insolvency solicitor.	Eligibility, public external-administration status, plan deadlines and the court's interests test.
Orderly liquidation	Registered liquidator.	Loss of control, investigations, asset realisation and possible personal claims against directors or guarantors.

Can the debt be paid or settled after the application is filed?

Yes. Payment or settlement can lead to withdrawal, discontinuance or dismissal, but the proceeding does not end merely because money has been transferred. The applicant's principal debt, interest and legal costs should be confirmed in writing, and settlement should be coordinated solicitor to solicitor with the court outcome expressly addressed.

Where the ATO is the applicant, do not assume that an online payment-plan request or verbal discussion automatically stops the listed hearing. The ATO's legal representatives, the applicant's instructions and the orders or discontinuance required in the court proceeding must be dealt with.

The substitution trap

Another creditor may ask to replace the original applicant under section 465B. Before paying the named creditor, identify unpaid tax, employees, secured creditors, landlords, judgment creditors and material suppliers. A payout that leaves another creditor ready to step in can consume scarce cash without ending the proceeding.

Where the issue is timing, the fast settlement finance guide explains settlement mechanics, while the business debt consolidation guide addresses the longer-term debt structure. Neither replaces the legal work required to end the proceeding.

Does an ATO payment plan stop a winding-up application?

No. An ATO payment plan does not automatically stop a winding-up application that has already been filed. A proposed or accepted arrangement may be part of the solution, but the ATO's legal representatives, the applicant's costs and the orders needed in the court proceeding must all be addressed. Do not rely only on an online account message, a verbal discussion or a plan showing as active.

What must be resolved when the ATO has filed the winding-up application?
Issue	What to establish	Why it matters
Total payout	The current tax debt, general interest charge, court costs and any amount required before the ATO will support a particular court outcome.	The portal balance may not be the complete amount needed to resolve the proceeding.
Payment-plan status	Whether a plan has actually been accepted, what liabilities it covers, its first payment date and what happens if the company misses a term.	A request, proposal and accepted arrangement are not the same thing.
Court instructions	Whether the ATO will seek an adjournment, dismissal or another order, and what must happen before its lawyers receive those instructions.	The listed hearing continues until the proceeding is formally dealt with.
Lodgements and new liabilities	Whether BAS, IAS, super guarantee statements and other required lodgements are current, and whether new tax debts are still accruing.	A plan that addresses old debt but allows new liabilities to build may not solve the underlying problem.
Director exposure	Whether any director penalty notice has been issued or may be relevant to the same PAYG withholding, GST or super liabilities.	A company arrangement does not automatically resolve a director's separate notice or personal liability.
Other creditors	The complete unpaid creditor position, not only the ATO balance.	Another creditor may support or seek substitution in the proceeding, and paying the ATO alone may leave the company insolvent.
Post-plan viability	Whether the company can meet the plan instalments, current tax, wages, suppliers and all other debts when due.	A court application is an insolvency problem as well as a collection problem.

Do not confuse the company debt with the director's position

An ATO arrangement for the company does not by itself remit a director penalty notice or stop its deadline. Reconcile the company proceeding and any personal ATO notice as separate workstreams.

For the debt and funding side, see the ATO tax debt loans guide. If money has already been redirected from the bank or a trade debtor, use the ATO garnishee response map. The ATO's own legal-action guidance explains that failure to comply with a statutory demand can lead to a Federal Court application to wind up the company.

Example: the ATO agrees to discuss a plan, but the court hearing remains listed

Scenario: An Australian Pty Ltd company owes tax and receives a filed winding-up application. The director proposes instalments and believes the matter is over. The company should not treat a proposal or even an accepted arrangement as a court dismissal.

1. Confirm figuresRequest a current, written statement of what is owing, any applicable interest and costs, and what settlement or arrangement the ATO is prepared to consider.

2. Reconcile debtsCheck lodgements, current and future tax, superannuation and other creditors so the plan does not conceal continuing insolvency.

3. Confirm legal positionAsk the company's solicitor to confirm the ATO lawyers' instructions and whether an adjournment, withdrawal or dismissal is actually proposed.

4. Document outcomeObtain the court outcome and maintain the paperwork for future financiers. Any director penalty exposure must be reviewed separately.

This is an illustrative sequence, not a statement that the ATO must offer a payment plan or that a court must grant an adjournment.

How do you oppose or defend a winding-up application?

The company opposes the application by filing and serving its grounds and supporting evidence within the court timetable. Where the applicant relies on a presumption of insolvency, the company commonly needs persuasive evidence that it is solvent, usually including expert accounting evidence addressing debts as they fall due rather than a simple balance-sheet surplus.

Potential issues can include solvency, standing, service, defects or another reason the court should not make the order. However, section 459S generally limits reliance on a ground that was or could have been used to set aside the earlier statutory demand unless the court grants leave and the ground is material to proving solvency.

Property equity alone is not a complete solvency answer. The court may examine whether assets are actually available, how quickly they can be realised or financed, whether secured debts accelerate because of the application, what unsecured lenders can pursue, whether books and records are reliable, and whether the company can pay all debts when due.

What a serious solvency pack usually addresses

Cash at bank and unrestricted facilities
When each liability falls due, including contingent and disputed liabilities
Collectability and timing of receivables
Tax debts, lodgements and employee entitlements
Availability and realisation time of assets or committed funding
Forecast cash flow and the assumptions supporting it
Complete and current books and records

The evidence required depends on the case. This is legal and expert-accounting work, not a template exercise.

What evidence is needed to prove the company is solvent?

A solvency case must show that the company can pay all of its debts as and when they become due. A positive balance sheet, property equity, expected sales or a large debtor ledger can help, but none is conclusive unless the money is genuinely available in time. The evidence usually needs to be current, complete and tested by an accountant with insolvency experience.

What evidence may be used to oppose a winding-up application on solvency grounds?
Evidence	What it helps establish	Common weakness to address
Current bank statements	Cash that is immediately available to meet due debts.	Restricted, overdrawn or recently transferred funds may not demonstrate sustainable liquidity.
Aged receivables	Expected customer inflows and their timing.	Old, disputed, related-party or uncollectable invoices should not be treated as cash.
Aged payables and creditor schedule	Every debt due now or soon, including tax, employees, landlords, lenders and disputed claims.	Omitted or understated creditors can undermine the entire opinion.
Thirteen-week cash-flow forecast	Whether expected receipts and available facilities cover debts when they fall due.	Unsupported sales assumptions or missing tax and payroll commitments make the forecast unreliable.
Management accounts and financial statements	Trading performance, assets, liabilities and balance-sheet context.	Outdated figures or poor books may require reconstruction before they carry weight.
ATO and lodgement records	The actual tax position, payment arrangements and whether new liabilities are accumulating.	A portal screenshot without reconciliation may not capture all liabilities or reporting gaps.
Available facility evidence	Undrawn limits or committed funding that the company can actually access.	Indicative, conditional or revocable funding is not the same as immediately available cash.
Property or asset realisation evidence	Whether assets can produce funds within the relevant period after secured debt and costs.	Equity may be illiquid, disputed, owned by another person or insufficient after existing security.
Independent solvency report	An expert assessment that brings the liabilities, liquidity, assets and forecast together.	A conclusion based on incomplete records or management assurances can be challenged.

A disputed debt and solvency are different questions

The company cannot assume that disputing the applicant's debt is enough after the statutory-demand deadline has passed. Section 459S can restrict grounds that could have been raised in a set-aside application. The lawyer should identify which grounds remain available and how they connect to the company's solvency evidence.

The current Corporations Act 2001 and the court timetable control. This section is a preparation map only; the actual affidavit and expert evidence should be settled by the company's insolvency solicitor and accountant.

Can voluntary administration or small business restructuring pause the hearing?

Either process can support an adjournment, but neither makes the winding-up application disappear automatically. Under section 440A, the court considers whether it is in creditors' interests for the company to continue under administration. ASIC's restructuring guidance says the court is to adjourn a winding-up hearing during restructuring if satisfied that continuing under restructuring is in the company's creditors' interests.

How do voluntary administration and small business restructuring affect a winding-up application? (as at July 2026)
Question	Voluntary administration	Small business restructuring
Who controls the business?	The voluntary administrator takes control.	Directors retain control, subject to the restructuring regime and practitioner oversight.
Does the hearing stop automatically?	No. Section 440A(2) requires an adjournment only if the court is satisfied, on evidence, that continuing the administration is in creditors' interests.	No automatic cancellation. The court applies section 453Q and the creditors' interests test.
Who may use it?	A company that is insolvent or likely to become insolvent, following a valid appointment.	An eligible company with total liabilities not exceeding $1 million and which satisfies the other statutory restrictions.
What must happen before a plan is proposed?	The administrator investigates and reports to creditors before they decide the company's future.	Before proposing a plan, due employee entitlements must be paid and required tax lodgements made. Tax debt need not be paid in full merely to propose the plan.
What can go wrong?	A late appointment with no credible proposal may not justify an adjournment.	Ineligibility, missed proposal deadlines or a plan that is not in creditors' interests can end the process.

Will appointing an administrator the day before the hearing stop it?

No. Section 440A(2) requires the court to adjourn only once it is satisfied that continuing the administration is in creditors' interests, and the administrators must prove that with evidence. In In the matter of CII Group Pty Ltd [2025] NSWSC 318, administrators appointed the afternoon before the hearing could not verify how the proposed deed would be funded; the court refused the adjournment, wound the company up and ordered one administrator to pay costs personally (Johnson Winter Slattery summary). In In the matter of Luxe Coatings 2Pac Specialists Pty Ltd [2026] NSWSC 315, the court again refused to adjourn because the proposed deed rested on assumptions the evidence did not support (Turks summary).

What does a court look at before adjourning a winding-up application for a voluntary administration?
Factor	What the court wants to see
Funding of the proposed deed	Documented, unconditional contributions that are realistically available, not promises or unverified spreadsheets.
Creditor support	A clear, evidenced position from key creditors, including the applicant and, where relevant, the ATO.
Trading projections	Realistic, explained forecasts rather than reliance on speculative future trading over a long period.
Guarantees or security offered	Evidence that the person offering it actually has the financial capacity to honour it.
Comparison with liquidation	Whether a liquidator's preference or insolvent-trading claims would return more to creditors than the proposed deed.
Timing of the appointment	Enough time for the administrator to investigate. A last-minute switch from claiming solvency to appointing administrators is treated with scepticism.

The practical lesson for directors: if administration is the plan, appoint early enough for the administrator to investigate, and have the funding for any proposed deed documented in writing before the hearing.

These processes are public forms of external administration and should not be used as delay tactics. A registered practitioner must assess the company, and the court will look at substance: the proposed outcome, funding, creditor return, timing and whether continuation is genuinely preferable.

ASIC explains the eligibility and plan stages in Small business restructuring and the restructuring plan.

Where an administration may lead to a deed proposal, the funding and exit questions are covered in the DOCA finance guide.

Can property-secured finance clear the debt before the hearing?

Sometimes, but the question is not simply whether property equity exists. A lender and the company's advisers need to see that the debt can be settled, the company is viable after settlement, the security can legally be taken and the facility has a credible exit. A lender willing to fund a distressed situation does not make an insolvent company solvent.

Finance may fit when

The debt and applicant's costs are confirmed
The business can meet ongoing debts after the payout
There is sufficient property value and lender headroom
Every property owner understands and accepts the security
There is a credible sale, refinance or cash-flow exit
The lawyer can structure and protect settlement

Finance is usually the wrong fix when

The payout clears one creditor but leaves the company insolvent
Another creditor is likely to substitute immediately
The proposed exit depends on unsupported future sales
The property owner or existing mortgagee will not consent
The hearing is too close for valuation, documents and settlement
The loan only delays an unavoidable liquidation at much higher cost

Possible tools include a caveat loan, private lending or a second mortgage. Each requires an exit strategy and adequate loan-to-value headroom. If a director, spouse or another third party owns the property, independent legal advice and informed consent are particularly important.

What happens after you call a lender?

The first questions will be the hearing date, the written payout, who owns the property and what is owing on it, and how the loan will be repaid. If those answers hold up, the lender orders a valuation and title searches and issues conditional terms. Then come loan documents, independent legal advice for every owner and guarantor, the first mortgagee's consent or payout figure, and a settlement coordinated with the applicant's solicitor so the court outcome is dealt with at the same time. Each step depends on documents and other people, so start the file the day the company is served, not the week of the hearing, and tell the broker about every creditor up front; a debt that appears late can stop the deal.

The caveat loan guide and second mortgage guide explain those structures in more depth. A broker's role begins after the legal and viability questions have been framed, not instead of them.

What documents should you have ready before approaching a lender?

Start with the legal timeline and a complete creditor picture, then prove the available property security and the plan to repay the loan. An early broker discussion can establish whether a proposal is even worth pursuing, but cannot replace solvency or legal advice.

What documents does a lender need when a winding-up application has been filed?
Document	What it answers
Filed application, supporting material and hearing notice	Who is applying, the precise court date and the legal stage.
Solicitor-confirmed payout and costs	Amount and terms needed to resolve the applicant's claim.
ATO account, aged creditors and secured debts	Whether paying one applicant solves the wider debt problem.
Property title, mortgage statements and existing caveats	Who owns the security, current debt and priority restrictions. If the security is a tenanted commercial property, the tenant and lease can affect the LVR a lender allows.
Accounts, bank transactions, wages and 13-week cash flow	Whether the company can meet liabilities when due.
Proposed exit and settlement contacts	How and when the emergency facility will be repaid, and who coordinates the transaction.

What if the finance is declined or cannot settle before the hearing?

Tell the insolvency solicitor immediately; do not assume lender negotiations postpone the court proceedings. Ask whether there is admissible evidence for a genuine adjournment application, whether a different settlement can be documented, or whether a formal insolvency option needs urgent assessment. If a winding-up order is made, control passes to the liquidator and any proposed loan must be reconsidered in that new legal position.

If the existing mortgagee does not consent, a valuation shows insufficient usable equity, or a property co-owner cannot approve the transaction, the finance plan may fail even when the asset appears valuable. A broker's indicative offer does not remove those hurdles.

Talk to a Broker Check Eligibility

Can the court adjourn the application while finance is being arranged?

Possibly, but a finance enquiry does not create a right to more time. The court may make final orders at the first return date, and any adjournment is discretionary. A company seeking time for a payout needs evidence showing that funding is genuinely progressing, settlement is realistically achievable and the company will be viable after the applicant is paid.

What makes a finance-based adjournment request more credible?
Evidence	Stronger position	Weak position
Applicant payout	Current written payout including interest and legal costs, with settlement instructions being coordinated.	An estimate based only on the original debt or statutory demand.
Lender progress	Identified lender, submitted file, written terms or approval status and outstanding conditions clearly listed.	A broker enquiry, verbal interest or a generic statement that funding is available.
Valuation and security	Property ownership confirmed, valuation ordered or completed, first-mortgage payout obtained and available equity tested after costs.	An owner's estimate with unresolved title, caveat, mortgage or consent issues.
Owner and guarantor consent	Every property owner and required guarantor understands the proposal and has independent legal advice arranged.	A spouse, co-owner, trustee or existing mortgagee has not agreed.
Legal settlement pathway	Company and lender solicitors are identified and the section 468, security and court-order steps have been considered.	The plan assumes money can simply be transferred on settlement day.
Expected settlement date	A dated path covering valuation, credit, documents, signing, priority and funds release.	“As soon as possible” with no critical path or unresolved conditions.
Post-payout viability	Cash flow shows the company can pay current tax, wages, suppliers and the new facility after settlement.	The payout clears the applicant but leaves other debts unpaid or relies on unsupported future sales.
Exit from the urgent facility	Evidence-backed sale, refinance or cash event with timing and fallback.	A general intention to refinance later, without serviceability or sale evidence.

What commonly fails in an urgent finance file

The court date is treated as the first deadline rather than the final one.
The lender sees only the applicant debt and later discovers the ATO, wages or supplier arrears.
The property appears to have equity until the first mortgage, default interest, legal costs and fees are included.
The security owner has not consented or cannot complete independent legal advice in time.
The company can fund the payout but cannot service ongoing debts afterwards.
The proposed exit is simply “refinance later” without evidence that a refinance will be available.

These are practical broking issues, not a prediction of how a court will decide an adjournment. The company's solicitor must decide what evidence should be filed and what order should be sought.

The Federal Court's corporations guide confirms that adjournments are discretionary and final orders may be made at the first hearing. The finance file should therefore run in parallel with the legal response, not after it.

Will a lender approve finance if a winding-up application is on the company's record?

A lender may consider finance despite a filed winding-up application, but approval is not automatic and many lenders will decline or require evidence of resolution. A filed application is a material risk indicator. The lender needs to understand the court position, the total payout, all other creditors, property security, post-settlement viability and a realistic repayment or refinance exit. A conditional approval does not guarantee that funds can settle before the hearing.

A lender may check ASIC's Published Notices, the company's commercial credit information, existing facilities and direct explanations from the borrower. The director should disclose the proceedings accurately rather than assume paying the debt will remove the public record. If the application concerns the borrowing company, the legal position of any new loan and security must be checked before documents are signed.

What a broker, solicitor and lender each need when a winding-up application has been filed
Who	What they need	Why it matters
Insolvency solicitor	Originating process, return date, instructions from the applicant's lawyers, settlement proposal and other creditor claims.	Determines the permissible legal path, deadlines and court outcome.
Accountant or insolvency practitioner	Current financials, aged creditors, tax liabilities, payroll obligations, bank statements and short-term cash flow.	Tests whether the business can pay debts after any payout.
Finance broker and lender	Written payout, security ownership and mortgages, valuation information, applicant details, exit evidence and lawyer's settlement framework.	Tests lending fit, transaction feasibility and timing without promising approval.
Property owner or guarantor	Loan terms, mortgage priority, guarantees, enforcement consequences and independent advice.	Clarifies personal exposure before risking a family or investment property.

Do not confuse lender interest with available funds

Indicative terms, a valuation order or conditional approval are not settlement. If the return date is close, ask the lawyer whether there is a defensible settlement or adjournment path, and avoid representing speculative finance as cleared money.

What happens after the application is withdrawn or dismissed?

Stopping the proceeding solves the immediate court risk, but it does not automatically repair the company's banking, supplier confidence, credit position or underlying cash flow. The recovery work should start as soon as the legal outcome is documented.

Keep formal proof of the outcomeObtain the sealed orders, notice of discontinuance or other court document confirming withdrawal or dismissal.
Verify ASIC notificationUnder section 470, the applicant must lodge notice of a withdrawal or dismissal within 2 business days. The earlier public notice stays on the Published Notices website, so keep evidence showing how the case ended.
Re-open commercial conversationsProvide the outcome to the bank, insurer, landlord or key suppliers where it is necessary to restore account access, facilities or trade terms.
Separate company and personal problemsConfirm whether any director penalty notice, guarantee, judgment, garnishee or personal claim remains. Dismissal of the company application does not automatically end those liabilities.
Replace emergency debtIf a short-term facility was used, begin the planned sale or refinance immediately rather than waiting for maturity pressure.
Prevent the next demandUse a 13-week cash-flow forecast, current tax lodgements, creditor terms and a documented arrears plan so the company does not return to the same point.

Will the winding-up application show on the company's credit file?

It can. The notice stays on ASIC's Published Notices website, and commercial credit reporting bodies commonly record court actions and published notices against companies. Lenders, suppliers and landlords may see it long after the case ends. The practical answer is to keep the sealed orders, write a short factual explanation of what happened and how it was resolved, and give it to the next lender before they find the record themselves. A broker will usually ask for both at the start of any future application.

ASIC's court-ordered winding-up flowchart confirms that Form 519 notification of withdrawal or dismissal is mandatory and is due within 2 business days. The company should verify that the outcome is correctly recorded rather than relying only on a verbal assurance from the applicant.

How can a business rebuild its credit and supplier relationships after the application ends?

Start with the sealed court outcome, then correct any inaccurate records, explain the event to important counterparties and show how future debts will be paid. Withdrawal or dismissal does not erase the historical notice on ASIC's Published Notices website. Whether credit reporting changes, and how long a record is retained, depends on the reporting provider and applicable rules. Do not promise deletion.

Prepare one evidence pack. Include sealed orders, the creditor's settlement confirmation, updated liabilities, recent accounts and a concise factual explanation of the proceedings.
Check the company's commercial credit reports. If an outcome or balance is recorded inaccurately, request correction from the reporting body with supporting documents rather than attempting to conceal the event.
Speak to affected banks, trade suppliers and insurers. Ask what documentation is needed to review facilities, account restrictions, credit limits or payment terms.
Stabilise operating cash flow. Maintain current ATO lodgements, schedule tax instalments if appropriate, confirm wages and superannuation obligations, and keep a rolling 13-week cash-flow forecast.
Prepare for the next application. Tell any future lender about the event early, provide its documented outcome, and explain what has materially changed in the business.

If the rescue relied on short-term private or second-mortgage funding, track the agreed exit date and potential refinancing requirements from the day of settlement. Replacing expensive emergency debt with a sustainable facility is a separate decision, and may not be possible.

What should the business show a new lender after dismissal?

Provide evidence of the court outcome and a credible current financial position, not just an explanation that the debt was paid. A concise package may include sealed orders or discontinuance papers, settlement receipts, confirmation of the company's current status, a current creditor schedule, up-to-date tax lodgements, cash-flow forecasts and an honest statement of what caused the original application.

A withdrawn or dismissed application is not the same as a winding-up order. Historical publication and credit-report data may nevertheless remain visible. Check the specific report for accuracy and request correction of errors; do not assume accurate history can be erased.

What happens if the court makes the winding-up order?

Control of the company passes to the court-appointed liquidator and the directors' management powers effectively cease. The liquidator takes control of assets, bank accounts, records and the company's affairs, investigates the company's history, deals with employees and creditors, realises assets and ultimately moves the company toward deregistration.

Directors must cooperate. ASIC says officers may be required to provide a Report on Company Activities and Property, deliver books and records and assist the external administrator. Directors should preserve records and avoid giving instructions to staff, customers or banks that conflict with the liquidator's control.

Employees who are owed wages, leave or redundancy pay when the company is in liquidation may be able to claim certain unpaid entitlements through the Australian Government's Fair Entitlements Guarantee. The liquidator can explain how that process works for staff.

There are exceptional after-order remedies. Section 482 allows the court to stay or terminate a winding up, and an order may sometimes be rescinded, but these paths are urgent, evidence-heavy and discretionary. They should not be treated as the planned fallback for missing the hearing.

ASIC's Insolvency for directors guidance explains the director's duties and the liquidation process.

What can the company do before a hearing, after an adjournment or after a winding-up order?

The available actions change at each stage. Before an order, directors may still be able to arrange settlement, defend the application or pursue an appropriate formal insolvency process with professional advice. An adjournment provides only the time and conditions the court allows. Once a winding-up order is made, the liquidator controls the company's affairs and directors cannot simply continue a pre-hearing rescue plan.

Options and control at different stages of a winding-up proceeding
Stage	Who has control	Main practical response
Filed, before hearing	Usually directors, unless another appointment has occurred.	Seek insolvency legal advice, assess solvency, test settlement or defence, and coordinate any lawful funding.
Adjourned hearing	Depends on any administrator, provisional liquidator or court orders.	Meet the court's deadlines; evidence a real settlement, solvency or formal process rather than assuming further extensions.
Winding-up order made	Court-appointed liquidator.	Cooperate with the liquidator, secure books and records, obtain advice about guarantees and personal exposure, and discuss any exceptional legal remedies with a solicitor.

Related customer questions after an order include what happens to employees, deposits, suppliers, leases, director guarantees and assets. These require case-specific insolvency advice, not a pre-hearing loan enquiry.

Does the application put the director, personal credit or family home at risk?

The application is against the company, so it does not automatically make the director bankrupt or transfer a personally owned home to the liquidator. Personal exposure usually arises through separate legal channels: director penalty notices, personal guarantees, insolvent-trading claims, indemnities, related-party transactions or security voluntarily granted over personal property.

How can a company winding-up problem reach the director personally?
Exposure	How it arises	What to check
Director penalty notice	The ATO can pursue a director personally for specified company tax liabilities under the DPN regime.	Notice date, delivery address, whether liabilities were reported on time and the exact response deadline.
Personal guarantee	A lender, landlord or supplier enforces a guarantee signed by the director or spouse.	Guaranteed amount, security, notices, limitation wording and whether the creditor has already demanded payment.
Insolvent trading	The company incurs debts when insolvent and the statutory requirements for personal liability are met.	When insolvency may have begun, new debts, financial records, advice received and any safe-harbour work.
Related-party transaction	Assets or money are moved to directors, family or related entities in circumstances open to challenge.	Market value, purpose, approvals, records and whether the transaction prejudices creditors.
Personal-property security	A director or spouse grants a mortgage, caveat or guarantee to fund the company payout.	Independent legal advice, informed consent, total cost, exit strategy and consequences of default.

Resigning as director does not erase liability for conduct or debts arising while the person was a director. ASIC also says a resignation that would leave the company with no director may have no effect. The director penalty notice guide explains the separate DPN pathway.

How much does a winding-up application cost?

From 1 July 2026, the Federal Court commencement filing fee is $5,255 where the applicant is a corporation and $1,805 in another case. Those are the applicant's filing fees under the Court's published fee schedule, not the total cost of the matter. State and territory Supreme Courts charge their own fees, so check the court named on the originating process. The court can ordinarily award the successful applicant its costs, and the company's own legal, accounting and insolvency-practitioner costs can be much larger.

What costs can arise after a winding-up application is filed? (Federal Court figures from 1 July 2026)
Cost	Who may bear it	What it includes
Court commencement fee	Initially the applicant; it may form part of costs sought.	$5,255 for a corporation applicant or $1,805 in another case, subject to the Court's current schedule and any exemption or deferral.
Applicant's legal costs	Often claimed against the company when orders are made or a payout is negotiated.	Preparation, filing, service, affidavits, appearances and disbursements.
Company's response costs	The company.	Insolvency solicitor, expert accountant, valuation, practitioner and court work.
Rescue-finance cost	The borrower and any guarantor or property owner.	Interest, establishment, legal, valuation, discharge and exit costs; usually higher for urgent distressed lending.
Cost of delay	The company and stakeholders.	Ongoing interest, lost supplier terms, disrupted bank access, staff departures and reduced business value.

The current figures should always be checked on the Federal Court's Court Fees Payable page. Where tax is owed, general interest charge is set quarterly; use the ATO's current GIC rates rather than relying on an old annual percentage.

Where should a director get help today?

The company's first professional call should usually be to an insolvency solicitor, followed by a registered insolvency practitioner or specialist accountant. A finance broker belongs in the team only where the legal strategy and business viability support a payout.

Free and independent starting points

Small Business Debt Helpline: 1800 413 828. It provides free, independent and confidential financial counselling for small business owners, including help understanding business debts, guarantees, ATO arrangements and business viability.

National Debt Helpline: 1800 007 007 for personal debt and financial counselling.

Registered practitioners: use ASIC's registered-liquidator information or the ARITA practitioner directory.

Public record: check ASIC's Published Notices register and the relevant court listing.

Financial distress can affect judgment, sleep and family relationships. Business.gov.au also lists mental-health and wellbeing support for business owners. Using confidential support does not replace legal advice, but it can help the director keep functioning while the professional team deals with the case.

A winding-up application starts a public court process that can move from filing to a first hearing within weeks. Directors usually remain in control before an order, but they must immediately address section 468, insolvent trading, the full creditor position, the court timetable and the commercial reaction once the notice is public. The right outcome may be payment, opposition, a formal restructuring or an orderly liquidation; finance fits only where it resolves a timing problem for a business that remains viable.

Key takeaway: identify the stage, protect today's decisions, choose the legal route, and plan what happens after the court case ends.

Talk to a Broker Check Eligibility

Frequently Asked Questions

What is a wind up notice?

A wind up notice is the common name for a creditor's application to the court to wind up a company in insolvency and appoint a liquidator, or for the published notice of that application. If the court grants it, the result is a court-ordered liquidation of the company. It usually follows a statutory demand that was not paid or set aside in time, and once the application is filed the matter runs to a court hearing date.

What is a notice of application for winding up order?

It is the published notice telling creditors and the public that a winding up application has been filed against a named company, and when and where the court will hear it. It is not the application itself; the application is the originating process served on the company. The notice appears on ASIC's Published Notices website at least 7 days before the hearing. If your question is how to pay the applicant before then, our insight on funding a payout of the debt explains what a lender wants to see.

Who can file a winding-up application?

Under section 459P of the Corporations Act, the company, a creditor, a contributory, a director, a liquidator or provisional liquidator, ASIC or a prescribed agency can apply. A person who is a creditor only because of a contingent or prospective debt, a contributory, a director and ASIC require the court's leave under section 459P(2). Prescribed agencies are not listed in that leave requirement. In practice most applications are filed by an unpaid creditor, often the ATO, after a statutory demand has expired.

Can a creditor file a winding-up application without a statutory demand?

Yes. An unpaid statutory demand is the most common route because it lets the creditor rely on a presumption of insolvency under section 459C. A creditor can still apply without one if it can prove the company is actually insolvent, for example with evidence that debts are not being paid when due.

What happens after a winding-up application is filed?

The application is served, notified to ASIC and publicly advertised before the listed hearing. Directors normally remain in control until an order or provisional-liquidator appointment, but post-filing payments, transfers and security may be void if an order is later made. Confirm the hearing date and obtain insolvency legal advice immediately.

How long is there before the winding-up hearing?

Use the hearing date on the originating process. Federal Court corporations applications are usually listed about 2 to 6 weeks after filing, although timing varies. The six-month period in section 459R is an outer limit for determining the application, not six months for the company to prepare.

Can the company keep trading, use its bank account and pay wages?

The company may keep operating while directors remain in control, but there is no blanket safe answer for every payment. Directors must prevent insolvent trading, a bank may restrict facilities, and section 468 can make post-filing dispositions void if an order is later made. Obtain advice before the next material payment or grant of security.

Can I move assets or start a new company before the hearing?

Not without legal advice. If a winding-up order is made, dispositions of company property after the application was filed may be void under section 468. A liquidator can also recover property transferred for less than market value that put it beyond creditors' reach, and people involved in illegal phoenix activity can face penalties. Starting a new business is not automatically unlawful, but taking the old company's assets or business without paying market value is high risk.

Can the debt be paid and the application withdrawn?

Yes. A confirmed payout and settlement can lead to withdrawal, discontinuance or dismissal, but payment alone does not formally end the proceeding. Settle through solicitors, include legal costs, address the court outcome and check whether another creditor may seek substitution under section 465B.

Can a loan stop a winding-up application?

A property-secured loan can sometimes fund a payout where the debt is payable, the company remains viable, sufficient security exists and there is a credible exit. It should be coordinated with the company's lawyer because new security and settlement payments after filing may require legal protection. Finance is not a cure for insolvency.

How do you defend a winding-up application?

The company files and serves grounds of opposition and supporting evidence within the court timetable. A solvency opposition usually needs expert accounting evidence addressing the company's ability to pay all debts when due. Section 459S can limit grounds that could have been raised against the earlier statutory demand.

Will appointing a voluntary administrator stop the winding-up hearing?

Not automatically. Under section 440A(2) the court must adjourn only if it is satisfied, on evidence, that continuing the administration is in creditors' interests. NSW Supreme Court decisions in 2025 and 2026 refused adjournments where administrators were appointed at the last minute or the proposed deed was not properly funded, and in one case an administrator was ordered to pay costs personally.

Can the company put itself into voluntary liquidation after the application is filed?

Not without the court's leave. Under section 490, once a winding-up application has been filed the company cannot resolve to wind itself up voluntarily. Voluntary administration, or small business restructuring for an eligible company, remain possible, but the court decides whether the hearing is adjourned.

Can another creditor take over the winding-up application?

Yes. Under section 465B, the court may substitute another eligible applicant. That is why the company should map every material creditor before paying only the original applicant and assuming the case will end.

Does withdrawal remove the winding-up application from public view?

No. The notice of the application stays on ASIC's Published Notices website as a historical record after withdrawal or dismissal, and no notice of the withdrawal has to be published there. The applicant must notify ASIC of the outcome within 2 business days, so keep the sealed orders to show banks, suppliers and lenders.

Will a winding-up application show on the company's credit file?

It can. The application is published on ASIC's Published Notices website, and commercial credit reporting bodies commonly record court actions and published notices against companies. Lenders, suppliers and landlords may see it even after the case ends, so keep the sealed orders showing withdrawal or dismissal and be ready to explain what happened.

Who is contacting me about the winding-up notice?

Once the notice is published, advisers, lenders and debt negotiators who monitor the register may call or email the company. Some are legitimate and some are not. Check that anyone offering insolvency help is a registered liquidator on ASIC's professional registers or a lawyer with a current practising certificate, and never transfer assets or pay fees because someone promises to make the application go away.

Can a director resign to avoid the problem?

No. Resignation does not erase liability for conduct, tax penalties or guarantees arising while the person was a director. ASIC also says a resignation that would leave the company without a director may have no effect. Obtain personal legal advice rather than treating resignation as a defence.

Is the director's family home automatically at risk?

No. A company application does not automatically give the company's liquidator control of a personally owned home. Risk can arise separately through a personal guarantee, director penalty notice, personal insolvency, court judgment or a mortgage or caveat voluntarily granted to fund the company. Review every personal document with the appropriate adviser.

What happens at the first winding-up hearing?

The first return date can be the final hearing. The court may make the winding-up order, adjourn the application, dismiss it or give directions. Final orders are possible that day, so any opposition, settlement, finance or restructuring evidence should be prepared before the hearing.

Does an ATO payment plan stop a winding-up application?

No. A payment plan does not automatically stop a filed court application. Confirm the total payout and costs, the arrangement terms, what instructions the ATO will give its lawyers and which formal court outcome will end or adjourn the proceeding.

What evidence is needed to prove the company is solvent?

The evidence must address whether all debts can be paid when due. Current bank statements, aged debtors and creditors, tax records, management accounts, cash-flow forecasts, available facilities, asset realisation evidence and an independent solvency report may all be relevant.

Can the court adjourn while finance is being arranged?

Possibly, but an adjournment is discretionary. A lender enquiry or unsigned term sheet is weak evidence. A more credible position includes a confirmed payout, identified lender, valuation and mortgage information, owner consent, written funding progress, a realistic settlement date and evidence that the company remains viable after payment.

What primary sources support this guide?

This guide prioritises the Corporations Act, Federal Court procedure, ASIC, the ATO and business.gov.au. Legal propositions are summarised for directors rather than reproduced, and the court named on the company's documents and the current legislation always control.

What sources support this guide, and what do they establish? (sources checked July 2026; court fees re-checked October 2026)
Source	What it establishes	Status
Federal Court Information Sheet 1	Statutory-demand procedure, filing, service, ASIC notice, publication, liquidator consent, hearing and the six-month rule.	Federal Court guidance, revised February 2023.
Federal Court Guide for Practitioners and Parties	Typical 2-to-6-week listing, first-return-date expectations, adjournments and sealed orders.	Revised June 2024.
Federal Court (Corporations) Rules 2000	Form 9 and rule 5.6: contents and timing of the published notice of a winding-up application.	Latest compilation F2024C00490, in force from 5 June 2024.
Corporations Act 2001	Sections 459A to 459S, 440A, 453Q, 465A to 468, 470, 482, 490, 513A and 588G, including who may apply under section 459P.	Current compilation should be checked before acting.
In the matter of CII Group Pty Ltd [2025] NSWSC 318	Last-minute administrator appointment: adjournment refused, company wound up, personal costs order; adjournment needs a sufficient possibility of benefit to creditors, not speculation.	NSW Supreme Court judgment; Johnson Winter Slattery summary dated 9 May 2025.
In the matter of Luxe Coatings 2Pac Specialists Pty Ltd [2026] NSWSC 315	Section 440A adjournment refused where deed funding rested on unsupported assumptions; factors courts weigh.	NSW Supreme Court judgment of 30 March 2026; Turks summary dated 9 June 2026.
ASIC Published Notices	Where notices of winding-up applications are published and searched, and that they remain as a historical record.	Live ASIC service.
ASIC small business restructuring	Eligibility, director control, creditor restrictions, proposal requirements and the effect on a winding-up hearing.	Live ASIC guidance reviewed July 2026.
ASIC insolvency for directors	Director duties, insolvent trading, DPN warnings, records and obligations to external administrators.	Live ASIC guidance reviewed July 2026.
ASIC court-ordered winding-up flowchart	Form 519 notification when an application is filed, withdrawn or dismissed, including the 2-business-day outcome notification.	Live ASIC procedural guidance reviewed July 2026.
ATO, If you don't pay	ATO statutory demands, payment arrangements, firmer recovery action and court winding-up action.	Live ATO guidance reviewed July 2026.
Federal Court fees	Commencement filing fees applying from 1 July 2026.	Current 2026 fee schedule, re-checked October 2026.
Small Business Debt Helpline	Free, independent and confidential business financial counselling and contact details.	Live business.gov.au service listing.
Federal Court, Starting a matter	A corporation must be represented by a lawyer unless the Court gives leave otherwise.	Live Federal Court guidance reviewed 19 July 2026.
ATO, Legal action we may take	Non-compliance with a statutory demand can lead to a Federal Court application to wind up the company.	Live ATO guidance reviewed 19 July 2026.

Regulatory information is general and can change. This page is not legal, insolvency, tax or financial advice. Confirm the application, deadlines, court rules and company-specific options with an insolvency solicitor and registered practitioner before acting. The business owners finance hub contains the broader finance guides.

Nick Lim

Broker, Switchboard Finance

0483 980 567 / hello@switchboardfinance.com.au

FBAA Accredited

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Disclosure: This article is general information only and does not constitute financial, legal or tax advice. Nick Lim is an FBAA Accredited Finance Broker with Switchboard Finance. Property-secured options such as caveat loans, second mortgages and private lending are usually short term, higher cost, business-purpose finance; all scenarios are illustrative, and actual outcomes depend on your circumstances, your documents, lender policy and market conditions at the time. A winding-up application is a serious legal matter; whether it is validly made, what deadlines apply, and your options under the Corporations Act are questions for your lawyer or a registered insolvency practitioner. Once an application is filed, payments and new security may be void, so get independent legal and insolvency advice before you act. Regulatory positions are current as at the dates shown and can change.

Nick Lim

Winding-Up Application Filed: What It Means and What You Can Do

Start here: is it a statutory demand, winding-up application, published notice or order?

What is a wind up notice?

What does a notice of application for winding up order show?

Where can I find ASIC wind up notices?

What should a director know straight after a winding-up application is filed?

Who can file a winding-up application in Australia?

How does an unpaid statutory demand lead to a winding-up application?

Can a creditor apply without a statutory demand?

What happens after a winding-up application is filed?

Who will find out about the winding-up application, and what happens next?

What happens at the first winding-up hearing?

What changes for directors once a winding-up application is filed?

Work that should begin now

Actions that need advice first

Can you move assets, repay family or start a new company before the hearing?

Can the company keep trading, use its bank account and pay wages or suppliers?

What should directors say to their bank, staff, suppliers and landlord?

What should a director do first after being served with a winding-up application?

What can still be done depending on how many days are left?

How can a company stop a winding-up application?

Can the debt be paid or settled after the application is filed?

Does an ATO payment plan stop a winding-up application?

How do you oppose or defend a winding-up application?

What evidence is needed to prove the company is solvent?

Can voluntary administration or small business restructuring pause the hearing?

Will appointing an administrator the day before the hearing stop it?

Can property-secured finance clear the debt before the hearing?

Finance may fit when

Finance is usually the wrong fix when

What happens after you call a lender?

What documents should you have ready before approaching a lender?

What if the finance is declined or cannot settle before the hearing?

Can the court adjourn the application while finance is being arranged?

Will a lender approve finance if a winding-up application is on the company's record?

What happens after the application is withdrawn or dismissed?

Will the winding-up application show on the company's credit file?

How can a business rebuild its credit and supplier relationships after the application ends?

What should the business show a new lender after dismissal?

What happens if the court makes the winding-up order?

What can the company do before a hearing, after an adjournment or after a winding-up order?

Does the application put the director, personal credit or family home at risk?

How much does a winding-up application cost?

Where should a director get help today?

Frequently Asked Questions

What primary sources support this guide?

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