ASBFEO: Over 40,000 businesses assisted, as payment disputes persist

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has achieved a remarkable milestone, assisting 40,000 small businesses in resolving disputes. The figure comes off the back of the latest quarterly report that sheds light on the critical role played by the ombudsman in supporting the small business community across Australia.

Ombudsman Bruce Billson described the milestone as a significant moment for the agency, which began in 2016.

“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.”

Payment issues on the rise

Payment-related disputes remain the most significant issue faced by small businesses to date, accounting for nearly 38 per cent of all cases. This represents an increase from 30 per cent since 2021 and highlights the persistent challenge of ensuring timely payments for small businesses, which can significantly impact their cash flow and viability.

“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 said.

Digital disputes increase

The ASBFEO report also revealed a significant rise in disputes involving digital services and platform providers, constituting 26 per cent of all cases. This figure has doubled in just two years, signalling the growing complexity of issues related to online business transactions. Businesses relying heavily on social media and digital platforms are particularly vulnerable, with devastating consequences when their accounts are hacked or suspended.

Billson expressed concern over the increasing difficulties businesses face with digital platforms, emphasising that the ASBFEO has been actively seeking resolutions with these providers. While most digital platforms have shown constructive cooperation,  Billson stressed the need for standardised procedures to enable timely dispute resolution without the intervention of a government body.

“I have been vocal in our concern about the rising number of problems small and family businesses are encountering with digital platform providers, particularly the nightmare in restoring an account that has been shut down after being hacked.

“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. 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. 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,” Billson said.

How ASBFEO assists with disputes

Although contract disputes have risen, the report also highlighted a positive trend of easing calls regarding franchise disputes, indicating progress in addressing concerns related to franchise operations.

The ASBFEO Quarterly Report also highlighted the ombudsman’s role in providing mental health support alongside dispute resolution as well as encompassing the provision of essential tools, resources, and guidance to help businesses start, grow, and thrive. For more complex cases, the ASBFEO Assistance Team provided specialised one-to-one support for over 12,600 businesses, including arranging alternative dispute resolution when necessary. The agency’s commitment to offering comprehensive support ensures that each business receives tailored assistance based on its unique needs and challenges.