One of the six eligibility rules for voluntary deregistration is simple to state and easy to trip over: the company must have no outstanding liabilities. Not "manageable" debt, not "we'll sort it out after" debt — none.
Why the rule exists
Voluntary deregistration is an administrative process, not a legal mechanism for dealing with creditors. It's not designed to let a company disappear while it still owes money — that's what liquidation and other formal insolvency processes are for, and they exist specifically to protect creditors' rights to be paid.
What counts as a liability here
Outstanding ATO debt, unpaid BAS or PAYG, money owed to suppliers or landlords, unpaid employee entitlements, and personally guaranteed loans or leases all count. A statutory demand or active legal dispute is its own red flag, separate from the debt itself.
If the company has debt: your options
- Pay it down or settle it first, then re-check eligibility — the most common path for smaller debts.
- Negotiate a payment arrangement with the creditor or the ATO before proceeding.
- If the company genuinely can't pay its debts as and when they fall due, that's a different situation — potentially insolvency — and needs a registered liquidator, not a deregistration form.
Why we route this out instead of pushing you through
Lodging Form 6010 for a company that isn't actually eligible doesn't make the debt disappear — ASIC can reverse a deregistration, and directors can still be pursued personally in some circumstances (unpaid PAYG withholding and superannuation guarantee amounts in particular). If any of this sounds like your situation, our insolvency and director risk check is a faster way to work out how urgent it is than guessing.