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Small businesses can now access low-cost legal advice as part of the government’s funding and commitment to “levelling the SME playing field.”
Government expands dispute resolution service for small business
05 March 2025
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7 minute read
As of Monday, eligible small businesses in dispute with another or government agency can access low-cost legal advice to help clarify issues and explore dispute resolution options.
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Minister for Small Business Julie Collins revealed the initiative was part of the government’s commitment to bolster Australian small businesses and was part of a $2.6 million investment to expand the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) dispute resolution services.
Minister Collins said the government secured ongoing funding for the ASBFEO dispute resolution to ensure the service continued.
“Our government is investing in ongoing funding to help small businesses when they may be faced with the high legal costs of resolving a dispute. This expanded program will give access to low-cost legal assistance prior to committing to expensive court action,” she said.
“Expanding dispute resolution services will help level the playing field for small businesses in dispute and will give them more help when they need it.”
The government noted the expanded service would build on the assistance the ASBFEO already provided to help small businesses navigate disputes, understand alternative dispute resolution options and find mental and financial services if needed.
To be eligible for the service, small businesses must have fewer than 100 employees or revenue of less than $5 million in the previous financial year and not already legally represented.
Businesses must also be seeking dispute resolution in relation to a relevant action under section 65 of the Australian Small Business and Family Enterprise Ombudsman Act 2015 or relevant industry code of practice, as well as having the matter actively managed by an ASBFEO case manager.
Additionally, the ASBFEO must be of the view that the matter may benefit from an alternative dispute resolution process.
Minister Collins said the dispute resolution service would allow more unrepresented small businesses, including franchisees, to access low-cost legal advice and assistance, helping them navigate business disputes more effectively.
“This is just one way the Albanese is supporting Australia’s record 2.6 million small businesses with more than $640 million in practical and targeted support. The government continues to support small businesses through challenges including by providing small businesses with better access to justice,” she said.
“The dispute resolution service will save small businesses stress, time and money, so they can get back to business faster and give them more help when they need it.”
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