The Australian Small Business and Family Enterprise Ombudsman has reached the milestone of having helped 40,000 small businesses in their dispute resolution.
Ombudsman Bruce Billson said this was a significant moment for the agency.
“Our mission is to make Australia the best place to start, grow and transform a small business and while we can’t guarantee every business will succeed, we strive to make sure no one fails because they didn’t get help when they wanted it,” Billson said. “We are proud that we have helped more than 40,000 small businesses resolve disputes with other businesses or government agencies, outside of the costly legal system.”
Based on the ASBFEO’s internal data, the leading dispute facing small businesses relates to being paid and it accounts for almost two out of five cases. There has also been a sharp rise in small businesses seeking help in digital disputes and with digital platform providers and in cases relating to the construction industry.
“We strive to help small businesses get back to business as fast as possible and pleasingly nearly two-thirds of the cases that come to us are helped quickly by our call centre or assistance team providing useful information,” Billson shared.
The ASBFEO also provides access to mental health support and tools, as well as a Tax Concierge Service for small businesses who have a dispute with the ATO.
In its seven years of operating, the ASBFEO has handled 40,510 cases, most of which involve disputes small businesses have with other businesses or Australian Government agencies. Some 27,854 small businesses were helped quickly by providing information to resolve their concerns.
The latest data in the ASBFEO Quarterly Report revealed that 26 per cent of cases relate to digital services, double the proportion the office received two years ago.
Some people have built their entire businesses on social media and digital platforms and having someone else access and control their account is devastating for their business and their reputation,” Billson said. “They watch the financial and emotional damage occur in real time with no ability to stop it.”
“One of the absurdities of the current situation is after being locked out of your account, you need to access your account to make a complaint,” he added. “It’s the ultimate run around. It is crucial that clear, appropriate, and standardised procedures be put in place to enable a timely resolution for small business disputes with digital platforms. We have been active in directly seeking resolutions for small and family businesses, however, they are not always consistent and the need for a government body to step in to resolve every small business dispute is not the answer.”
Billson noted that there had also been a doubling over two years in the proportion of cases relating to the construction industry which now accounts for just over one in 10 of the calls for assistance. Still, the main type of dispute continues to be about payments which account for 38 per cent up from 30 per cent two years ago.
There has also been a rise in the proportion of disputes about contracts but an easing in calls about franchise disputes, which is the third area of most concern for small and family businesses.
