The list included access to capital, lack of networks/mentorship, other responsibilities outside work, unconscious bias, regulatory barriers/red tape and risk appetite.

In response to the survey, one woman business owner said the following: “Your list of items WOEFULLY misses the actual issues we face. Where is the question about childcare and employee share ownership?”

Criticism of the list sparked a reflection article from Ombudsman Bruce Billson, who said the incident had made his office aware of the gap between Government advocacy efforts and the actual experiences of women entrepreneurs.

“We know we need to do more to make sure that our voice of advocacy for women-owned and -led businesses reflects the things that matter the most to them,” said Billson.

“We were keen then, and are keen now, to hear and learn about the real-world, right-now issues for women-owned and led businesses.”

Data vs reality

Even the number of women entrepreneurs is a hazy figure, according to Billson.

About 35 per cent of small businesses are owned or led by women – double the rate in the 1970s. However, the ASBFEO pointed out that the actual figures might be higher.

“Our on-the-ground discussions with small-business owners and preliminary analysis of new datasets indicates that the extent of female entrepreneurship is constantly underestimated,” Billson explained.

“If we can’t see people, we can’t make or evaluate policy for them. And more than that, we can’t include them in the discussions and consultations about how a policy or its intent may impact, either positively or negatively, on women led businesses.”

One possible reason we don’t know the true extent of women-led businesses is that these ventures are often dismissed as side-hustles or hobbies.

The Ombudsman said that understanding the real extent of female entrepreneurship is a priority for his office for the next 12 months. He added that the “female sole trader story” is of particular interest.

The post Is the Government asking women entrepreneurs the right questions? appeared first on Inside Small Business.

The resource follows a 50 per cent jump in requests for help with debt-related matters last financial year. 

The guide outlines how the Ombudsman can help small businesses with their debt challenges. While the ASBFEO reminded small-business owners that it can’t directly help with legal advice or debt collection services, it does have a range of resources to help them understand their situation and options.

The guide also points small-business owners to the small business debt hotline, small business mentoring service and other external help services.

Impact on business owners

“Outstanding debts can be overwhelming for a small business – whether you are owed money by a customer or you owe money to a supplier,” said Billson. “[Small business owners’] identities are interwoven into their business and the stakes are so much higher than just a job. Many have invested a lifetime – and put their life’s savings and family home on the line – to build up their business.”

The Ombudsman added that, in most cases, business owners are disputing the means and timing of debt repayment – not the amount.

“Businesses usually want to keep doing business with each other but struggle to find a workable pathway to resolve debt disputes,” Billson said. “This is where we can help.”

The guide is available to view here.

The post ASBFEO releases debt guide as payment disputes rise appeared first on Inside Small Business.

“We have seen Australian-based small businesses have their livelihoods damaged by unfounded allegations being made under these laws and then have their products taken down without warning by the major selling platforms,” explained Ombudsman Bruce Billson. “If you are an Australian business that sells online, you probably use a US-based platform – like Etsy, Shopify or Square. And this means that the DMCA can seriously affect your business, so it is very important that you know how it works and what your rights are.”

Under the DMCA if a person or a business believes any online content infringes on their copyright, they can contact the online service provider e.g. Etsy or Shopify, and ask them to take down that content through what is called a “takedown notice.”

Billson noted that while the law is designed to protect businesses from intellectual property theft, it can sometimes be used maliciously to put genuine competitors out of business.

“I am very concerned that this law is being weaponised by some unscrupulous competitors to unfairly knock out genuine Australian businesses, so my agency has created a guide to raise awareness about the DMCA among Australian businesses. Australian businesses need to be aware of competitors who seek to manipulate the DMCA for market advantage and understand their rights if this is used against them,” he said.

Billson advised that in the event a takedown notice is received, the concerned small business should immediately seek legal advice so they can take the proper course of action as content subjected to a takedown notice is usually removed without warning.

“Australian businesses can challenge the takedown notice by contacting the person or other business that issued the notice to negotiate removal or they can issue a counter-notice. If you decide to issue a formal counter-notice it will put you under the jurisdiction of the US legal system and the party who made the original claim can take it to court, which can be an extremely expensive battle to fight,” the Ombudsman explained.

Billson pointed out however that a takedown notice does not necessarily mean that the small business in question has breached copyright law but that someone claims the subject of the notice did such a breach.

“This can be a terrible dilemma because we have seen Australian companies forced out of business or lose access to a lucrative market because they could not afford to defend their economic interest. Not responding to a DMCA notice will be interpreted by the platform as a surrender to the claim of copyright violation and will see the removal of the allegedly offending product, service or content affirmed,” Billson explained.

“But sometimes the mere act of issuing a counter-notice causes the original party to back down and the online service provider will restore the content,” he added.

Billson also cautioned Australian businesses not to consider their own unfounded DMCA action against competitors, warning misuse of legal protections could backfire and lead to action being taken against them.

“In all cases, Australian small and family businesses should get their own legal advice if they are hit with a DMCA notice. In addition, they can get support from my agency,” he said.

The Ombudsman’s guide to the DMCA is available at www.asbfeo.gov.au/DMCA.

The post Small business Ombudsman releases guide on US copyright laws appeared first on Inside Small Business.

“It’s a big responsibility owning and running a small business, and that is magnified when it is a family endeavour,” said Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO). “When the dining table becomes the board table, that can create a unique set of challenges.”

When the dining table becomes the board table

Many family-run businesses count on multiple family members investing their whole lives in the enterprise, said Billson. These familial groups often put their homes on the line and pitch in financially during tough times.

“For many, there’s no clocking off at the end of the day or on weekends,” Billson explained. “They are always going because they know the stakes are high.”

Family businesses come in all shapes, sizes, and sectors. The most family-run sector is agriculture, forestry and fishing, while about one in 10 people working in a family business are in construction, accommodation, food services, and retail.

Older workers

Family businesses are an important employer for older workers. A quarter of workers over 80 are contributing workers to a family business, the ASBFEO revealed.

“As we get older, those who stay in the workforce are increasingly likely to be associated with a family business,” said the Ombudsman.

Its older cohort means that family business must face the challenge of succession planning. Planning, an understanding of the law, and trusted third-parties are often necessary to the succession process, added the Ombudsman.

“For the parent, passing the business onto the kids can be an ideal way to end their business journey,” said Billson, “but sometimes the next generation are not interested or have developed skills and interests not necessarily aligned to the family business.”

The ASBFEO commended both the Family Business Association and Australia broadly for their recognition of family-run businesses.

“Australia is one of the few major economies that records and recognises the immense contribution of family members to a business, even when they might not receive a separate income for their endeavours,” Mr Billson said. “It’s a great moment to reflect on the crucial role family-owned businesses play in the economy and throughout our communities and I commend the Family Business Association on this initiative.”

The post Celebrating Australia’s one million plus family businesses appeared first on Inside Small Business.

“Many of our small and family businesses are doing it tough right now,” Mr Billson said. “We need to do more to energise enterprise and create and nurture the spark that will inspire someone to turn an idea into investment, to build a business, to take on the risk and big responsibility of creating an opportunity-generating new enterprise, and to employ that extra person.

“We need more incentives for those starting a small business, a simple, quick and cost-effective way for small business owners to settle court disputes, and more emphasis on encouraging younger Australians to consider business ownership.”

‘Big corporate’ economy

Ombudsman Bruce Billson also raised concerns around the long-term trajectory of SME performance relative to big businesses.

“Small business is rightly celebrated for generating 33 per cent of our nation’s Gross Domestic Product and providing jobs for 5.36 million people – 42 per cent of the private workforce,” he said. “But in 2006, small business contributed 40 per cent of GDP and employed 53 per cent of those with a private sector job. This is a worrying trajectory. We are sleepwalking into a ‘big corporate’ economy.”

The Ombudsman’s 14 steps to boost SMEs:

1. Explore the potential benefits of a tax discount/offset scheme for new small business owners to allow them to keep more of their income to re-invest in their business during the critical first three years.
2. Focus on right-sized regulation, including how regulators and government formulate and administer laws, to help, support and enable small business owners, who do not have the resources of big business, meet their obligations.
3. Require every Cabinet submission, preliminary and formal regulatory impact statement and new policy proposal to include a small business impact statement.
4. Establish the Prime Minister’s Small Business Awards to recognise and celebrate excellence and inspire the next generation.
5. Give small businesses an affordable, effective and timely alternative to defend their own economic interest where fair trading protections and reasonable commercial conduct safeguards are infringed upon by creating a Federal Small Business and Codes List in the Federal Circuit and Family Court of Australia.
6. Give small business a greater chance to compete for government contracts by decoding the rules and practices that favour the ‘in-crowd’ of familiar, established and larger suppliers.
7. Make it mandatory for banks and other providers to charge the lowest fee for tap-and-go, dual-network debit card transactions as the default, saving small business around $1 billion a year.
8. Undertake urgent and decisive action to ensure that essential insurances for small businesses are understandable, accessible and affordable.
9. Ban unfair trading/business practices that distort competition and harm small business.
10. Create a dedicated Small Business Commissioner and Division within the Fair Work
    Commission to honour the ‘special circumstances’ of smaller employers existing workplace law are required to reflect and to oversee the implementation of proportionate instruments, procedures, practices and protections.
11. Require digital platform providers to implement clear, appropriate and standardised
    procedures for timely small business dispute resolution.
12. Honour businesses, big and small, who fulfil their workplace obligations to employees, meet tax reporting and payment obligations in a timely way and pay small business suppliers in under 21 days, with a ‘Good Business Pays’ recognition and accreditation.
13. Expand digital learning and practical support via enterprise-specific capacity building and technology deployment and focusing on business system and reg-tech solutions, information management (including cyber resilience, eInvoicing, data management, privacy duties and Consumer Data Right awareness) and practical generative Artificial Intelligence uses.
14. Develop a readily accessible and easily navigable central resource hub of ‘best of breed’ actionable information, supports, ‘how to’ guidance, programs and assistance developed by government and private sector specifically prepared for small and family business use.

The post How SMEs can be supported: ASBFEO recommendations appeared first on Inside Small Business.

“A push by the banks to shrink the Code has been rejected and they must continue to include an explicit and detailed pledge outlining how they will handle complaints,” Billson said. “The code will also be expanded to cover at least 10,000 more small businesses and it will include clear information about how a small business can enforce their rights.”

The Banking Code of Practice aims to establish consistent industry practice standards and will come into effect on 28 February 2025 after thwarting the efforts by the Australian Banking Association to remove the detailed ‘how to’ requirements regarding complaints handling and instead refer customers to ASIC Regulatory Guide RG 271, which has been part of the code.

“It was never reasonable to expect busy and resource-constrained small businesses to read and understand regulator guidance for financial firms, and then to decipher and be clear on how to exercise rights afforded to them,” Billson explained. “We are pleased ASIC has rejected this absurd change that would have omitted from the code existing explicit commitments by banks when there is a complaint to conducting a fair and reasonable process, as well as providing information on progress, a contact person, a written response, and an explanation and monthly updates regarding delayed responses.”

Billson also pointed out that small, family and farming businesses were frustrated with the banks, particularly in regional areas where branch closures and the removal of automatic teller machines have deprived them of face-to-face service.

“The banking code, like all industry codes, should be viewed as the ‘floor’ of minimum standards, not the ambition,” Billson said. “Competitive access to finance has been a longstanding challenge for small and family businesses. Policy incentives need to strike the right balance between managing risk and supporting entrepreneurship, including by ensuring small businesses have reasonable and reliable access to banking services.”

The Ombudsman also shared that the protections of the code will cover at least an extra 10,000 small businesses by increasing the value used in the aggregate borrowing criterion from $3 million to $5 million. The code will also have an updated introduction with information about how eligible individuals, small businesses and their guarantors can enforce their rights.

The new code will also force the banks that have signed the original code to take reasonable steps to make sure a meeting is held with a prospective guarantor before taking a guarantee and to discuss customer circumstances and reasonable alternatives to repay a guaranteed liability before selling a guarantor’s primary place of residence.

In addition, there is an updated conduct pledge that pushes the banks to do all things necessary to ensure that banking services provided under the code are provided efficiently, honestly and fairly. There is also an updated definition of vulnerability and an enhanced definition of financial difficulty which would cover customers who are likely or expecting to be unable to meet future repayments.

Billson said that while the banking environment was continually evolving, rising best-practice standards and expectations should be captured in each new version of the code.

“I call on the banks to make sure the benefits of their expanded commitments and the updates in the new code apply to both current and prospective small business customers,” he said.

The Ombudsman has also urged the ongoing independent review of the 2020 General Insurance Code of Practice, to follow ASIC’s example by applying the same lens of protecting small businesses and consumers.

The post New Banking Code of Practice set to increase protections for small businesses appeared first on Inside Small Business.

This is made possible with the addition of a translation feature powered by Google Translate and it can accessed at the top of the ASBFEO website.

“One in three small businesses are run by people who were born overseas and our culture and local business communities are enriched by their presence,” Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), said. “But, sometimes when help is needed and people are distressed, many find it easier when the information is provided in a preferred language. I hope this new feature on our website, which can be activated by one simple click, will make it easier for migrant-led business owners to use the many helpful resources, tools and checklists available.”

Recent ASBFEO research reveals that nearly one-quarter of small-business owners use a language other than English at home and more than half of small-business owners are second-generation migrants, with a parent born overseas.

The Ombudsman also noted that around 23 per cent of small-business owners required the assistance of one of ASBFEO’s case managers in matters relating to a dispute as they spoke a language other than English at home. In almost two-thirds of these cases, the issue was about a payment dispute.

“Effort has been made to provide accurate translations, but no automated translation is perfect nor is it intended to replace human translators,” Billson said. “When we individually assist with cases, our case managers use human translators to help ensure that translations are accurate, and meaning is well understood.”

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“It is essential that small-business owners and managers understand these changes,” Billson said. “Business leaders are responsible for getting this right and should check their payroll and accounting systems have been updated.”

Some of the changes that are taking effect this new financial year are as follows:

National Minimum Wage and Award Rate

Effective 1 July, the National Minimum Wage will increase by 3.75 per cent to $915.90 per week or $24.10 per hour and the minimum award wages will increase by 3.75 per cent as well.

More information can be found at https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/2023-2024-annual-wage-review.

Income tax cuts

The income tax rates and thresholds will be changed effective 1 July, with workers getting an income tax cut.

The new tax tables are available at https://www.ato.gov.au/tax-rates-and-codes/tax-tables-overview.

Super Guarantee

The Super Guarantee (SG) rate will increase from 11 per cent to 11.5 per cent for all employees eligible to receive superannuation on 1 July and employers must use the new rate even if some or all of the pay period is for work done before 1 July. The SG rate is legislated to increase to 12 per cent by 2025.

The Tax Office is also urging employers to ensure that SG payments arrive on time, as processing times for payments made through a clearing house can vary and some take up to 10 days. It must be noted that super contributions are only considered ‘paid’ when the super fund receives them, not the clearing house and the employer needs to lodge a statement and penalties may apply in cases of late payments.

More information can be read at https://www.ato.gov.au/businesses-and-organisations/super-for-employers.

Single Touch Payroll

Employers are required to finalise employees’ Single Touch Payroll data by 14 July and must include all employees they have paid in the 2023-24 financial year, even those who are no longer on staff, ensuring that employees have the right information needed to lodge their own income tax return.

More information is available at https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll.

Instant asset write-off

The instant asset write-off threshold will now be at $20,000 on a per-asset basis for 2024-25 for eligible small businesses with a turnover up to $10 million.

Business name and company registration fees

The Australian Securities and Investment Commission will increase fees for registering, renewing and reserving company and business names from 1 July.

Details are available at https://asic.gov.au/for-business/payments-fees-and-invoices/asic-fees/asic-fee-indexation.

New Commonwealth Procurement Rules

Changes to the Commonwealth Procurement Rules that will take effect on 1 July promise to provide greater opportunities for small businesses to win a government contract. by boosting the target for sourcing from small and medium-sized businesses for contracts below $20 million from 35 per cent to 40 per cent while the target for contracts under $1 billion will lift from 20 per cent to 25 per cent. The SME exemption threshold will also be raised to $500,000 to make it easier for government to buy from SMEs.

The Australian Government’s new Environmentally Sustainable Procurement Policy will also take effect from 1 July, thus businesses supplying goods or services to the government will be required to undertake activities to substantiate environmental claims and demonstrate compliance with the policy.

More information is available at: https://www.dcceew.gov.au/environment/protection/waste/sustainable-procurement.

New workplace laws

A range of workplace changes take effect in July and August, such as changes to casual employment, new minimum standards and protections for ‘employee-like workers’ in the gig economy, and new laws around the right to disconnect, although this change does not apply to small businesses with fewer than 15 employees until 26 August 2025.

More details and timelines are available from the Fair Work Ombudsman at www.fairwork.gov.au

The post ASBFEO urges small businesses to note changes taking effect this new financial year appeared first on Inside Small Business.

“With just days to go before the end of the financial year, Federal Parliament last [Tuesday] night finally passed two pieces of legislation from the 2023 Budget that were announced more than a year ago and [that expired]e on 30 June,” Billson said. “The small-business community is cranky and exasperated about the incredibly slow way these measures have progressed.

“Incentives are designed to encourage a type of behaviour you want to see more of but if there is so little time to act, the purpose and value of the incentive is undermined,” Billson added.  

The Australian Government announced last year the Small Business Energy Incentive tax break worth up to $20,000 to support electrification and more efficient use of energy, as well as the new $20,000 threshold for the Instant Asset Write Off for eligible small businesses with a turnover up to $10 million, both of which were stated in the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023.

“We’ve heard from confused small businesses and their representatives that they just wanted certainty but, until a Bill passes Parliament, they cannot know what the final law will say and if an intended investment is eligible,” Billson said. “We’re talking about a small or family business spending $100,000 to get the full value of the electrification and energy efficiency tax incentive. That’s a big commitment, and as recognised by the Government, the tax break may be the critical difference in being able to afford to do this.

“The Parliament is hardly treating small and family businesses with respect by this behaviour,” Billson further stressed. “Small businesses need time to know the announcement has become law, so they can confidently plan in a sure-footed way for important investments that uplift the capacity, the productivity and drive innovation in their business and not be forced in the final days of the financial year when they have so many other deadlines to meet, to rush such big financial commitments.”

The Ombudsman suggested that laws with a time deadline should come with a minimum implementation period of no less than six months from Royal Assent until the time a scheme ends.

“The policy (Small Business Energy Incentive) was designed to encourage small businesses to spend money it would otherwise not have spent, but a lack of certainty over the program may have deterred them,” Billson explained, adding that the limited time available could mean the bonus tax deduction will only benefit businesses that were going to purchase energy efficiency upgrades before the policy was announced.

“We need to give more encouragement for people to turn an idea into an investment and to make that big decision to turn scarce resources into new capability, new equipment, new technology to help with the success and ‘future readiness’ of that enterprise and the livelihoods that depend upon it,” Billson said. “Repeatedly we hear it said that small business is the engine room of the economy yet that engine is being forced to operate below capacity. Small businesses need to be able to trust Parliament to give them enough time to understand changes and with certainty factor them into their planning.”

The post Delays on incentive legislation getting small businesses cranky appeared first on Inside Small Business.

“These are great people in plain sight, and we see them everywhere, every day,” Billson said. “The best way to support small businesses is to be a kindly customer – patient and understanding, with good and generous intent.

“Small business also needs to be front of mind for our policymakers and regulators,” Billson added. “We need to do all we can to shift the mindset from minimising headwinds to maximising the ‘wind in the sails’ of our hard-working small and family businesses.”

Billson has also called for a review of the existing regulations for small businesses and ensure that they are not being saddled by red tape.

“Every well-intentioned change by Parliament or regulators risks adding to the mountain of red tape that gets between the owner and the small business they are trying to run,” he explained. “Regulatory impact assessments should start with and focus on small business implications, not consider this as an afterthought. This would mean every time a decision is made, small business will be front of mind and bright on the radar screen.”

Recent research has found that 98 per cent of businesses in Australia are small businesses, that is 2.5 million that are generating almost $600 billion of economic activity accounting for 33 per cent of Australia’s GDP and are providing jobs for 5.36 million people or 42 per cent of private sector jobs. However, the figures are a far cry from 2006, when the sector contributed 40 per cent of GDP and employed 53 per cent of private sector jobs.

“This worrying trajectory shows we need to do more to energise enterprise,” Billson said. “Surely, we can do more to get the risk and reward balance right, ensuring small business and entrepreneurship is a really attractive option for people, then create a supportive ecosystem to give enterprising people the best chance to be successful.”

Billson said small business is a dynamic and fast-growing sector that allows people with an entrepreneurial spirit to pursue their dreams and own livelihoods.

“They come with varied ambitions, backgrounds and experiences but what they have in common is the desire to have a go,” he said. “Taking on the responsibility of owning and running a small business can be inspired by a range of goals and motivations, an abundance of purpose and meaning and be rich with unpredictability of challenges, flexibility, self-agency and income.

“The spirit that drives people to run a small business also makes them great advocates for and contributors to their community and they are more likely than the general population to be a volunteer,” the Ombudsman added. “For small- and family-business owners, their identities are interwoven into their business and the stakes are so much higher than just a job. Many people have invested a lifetime, and put their family home on the line, to build up their business, which amplifies the emotional challenges.”

MSME Day is an initiative of the United Nations General Assembly to raise public awareness of small businesses’ contribution to a country’s prosperity, wellbeing, and community.

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