Login
iscover
The small business advocacy group has called for funding to be restored for the ASBFEO due to its increasing workload.
Newsletter
COSBOA lobbies for ASBFEO funding boost
17 January 2025
•
10 minute read
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
The Council of Small Business Organisations Australia (COSBOA) has stressed the crucial role the Australian Small Business and Family Enterprise Ombudsman plays in supporting small businesses and has urged the government to provide additional resourcing to meet its increasing demand.
In a recent submission, COSBOA noted that as businesses struggle with rising costs across energy, rent, insurance, borrowing and supply chains, ASBFEO has received a 10 per cent increase in requests for assistance in 2023–24.
“Following bushfires, flood and COVID lockdowns, small businesses have been facing a continuing perfect storm for several years,” Luke Achterstraat, chief executive of COSBOA, said.
“Enhanced resourcing would enable ASBFEO to expand its activities, improve dispute resolution efficiency, and better support industry-specific needs.”
COSBOA said that the ASBFEO is experiencing increased demand as small businesses deal with insolvency risks and regulatory challenges, and its funding should be restored. It criticised the government’s decision to cut $8 million to the Ombudsman’s budget in 2022 and said it sent a negative signal to the small business community during a highly challenging time.
High business expenses continue to put pressure on the profit margins of small businesses, according to the ASBFEO’s November 2024 Small Business Pulse. While there are early signs of increased interest in growth and innovation, conditions for small businesses are down 1.4 per cent over the past 12 months.
==
==
COSBOA outlined that the ASBFEO’s services are an important, easily accessible resource for small businesses, without fees or lengthy formal processes.
In 2023–24, the ASBFEO received 6,254 requests for assistance for small businesses, and requests for help with insolvency jumped 50 per cent.
“As Treasury undertakes the ASBFEO Review, COSBOA recommends that the demand for ASBFEO’s services be recognised,” Achterstraat said.
COSBOA has urged policymakers to seize the review as an opportunity to strengthen the ASBEFO to ensure it can continue its vital work and foster a thriving future for small businesses nationwide.
“The ASBFEO’s work in amplifying small business voices, facilitating low-cost mediation, and delivering targeted research and policy insights is indispensable to the health of the sector and the economy,” it said.
“As the operating and regulatory environment only becomes more complex for small business, the role of ASBFEO will only become more critical into the future.”
You are not authorised to post comments.
Comments will undergo moderation before they get published.