Do not wait
A statutory demand is time-sensitive. A company considering an application to set aside a demand needs specific legal advice on the statutory requirements and deadlines.
ATO statutory demand Australia
A statutory demand is a formal insolvency warning, not an ordinary reminder.
The ATO can serve a statutory demand for an unpaid company debt. The ATO states that the company generally has 21 days to pay the debt or enter an agreed payment plan; failure to comply can support a presumption of insolvency and a winding-up application.
What matters immediately
Legal response and business recovery need to move in parallel.
Reconcile the debt
Confirm the ATO balance, lodgments, payments and any dispute or arrangement with your tax adviser.
Assess solvency
Directors need a realistic view of whether the company can meet debts as they become due, not simply whether assets exceed liabilities on paper.
Current obligations
Protect wages, super, GST, PAYG and other current commitments while the historic debt is being addressed.
Funding is not a legal response
New capital may form part of a broader solution, but it should not replace immediate advice on the statutory demand itself.
Document decisions
Keep clear board and management records around cash flow, creditor discussions, professional advice and actions taken.
Related authority pages
Understand the wider tax-debt and director-risk context.
Official reference
The ATO explains that a statutory demand generally gives a company 21 days to pay the entire debt or enter a payment plan and that non-compliance may lead to an application to wind the company up.
Read the ATO recovery guidance →Urgent disclaimer
This page is general information only and is not legal, tax or insolvency advice. If your company has received a statutory demand, obtain advice from an appropriately qualified lawyer and insolvency or restructuring professional immediately.
Commercial coordination
Need the operating position organised around the specialist response?
I can help map cash flow, liabilities, management information and potential capital pathways while qualified advisers handle the statutory demand itself.