Media Centre

Small business key to lifting living standards and economic resilience

Stef Cox — Mon, 26 May 2025 00:37:27 +0000

Small business key to lifting living standards and economic resilience Stef Cox Mon, 05/26/2025 - 10:37

26 May 2025

Originally posted in the Canberra Times

It is pleasing to see so much recent attention on what is needed to bolster our economic resilience and to restore living standards at a time of uncertainty and disruption. International economic uncertainty is exacerbating existing and persistently strong pressures on many small and family businesses.

Improving our productivity and competitiveness has gained a necessary and welcome renewed focus now that the election is over.

Economists often talk about productivity and its centrality to sustained improvements in living standards, incomes and national wellbeing.

Yet, in political corridors, productivity tends to be talked about quietly (if at all), and rarely raised as a topic to be discussed amongst polite (public) company.

It is because of how the term grates on the electorate which often feels it amounts to doing more for less or working harder for the same pay.

In fact, it is about doing more with what we have and creating more value from what we use.

In a business-sense, it's being able to produce more services and things, of better quality and higher value, from what is needed to provide them.

How the talents and time of the team are best deployed; to the way we get the best from equipment we use; how automation can "up" the outputs, speed and accuracy of processes; how the smarts of technology are deployed; where efficiencies can be found; how actions and decisions can contribute to better outcomes; how new ideas and ways of working can create new possibilities for delighting customers - these are the building blocks of improved productivity, competitiveness and resilience.

This is how "value" is enhanced, and the economic "pie" is sustainably enlarged, with benefits shared between businesses, their teams, customers and our community.

Small and family businesses, and those thinking of creating a business, reach for these goals every day. Not just when the going is good and conditions are right, but even more so when there are many headwinds and trading conditions are tough.

It is because so much is on the line - a lifetime of work, the big responsibility of business ownership, how business viability enables livelihoods, identity, passion and purpose motivations, a drive to succeed and often a vision that spans generations which sees small and family business people push on and persevere.

Economic resilience is part of their DNA.

This drive is more than optimism - it is a relentlessness, a dedication and unwavering belief that sees problems solved, hurdles overcome, setbacks learned from, and new, better possibilities imagined and pursued.

It means small businesses are often innovating by necessity, adapting and adjusting in real time, investing and trying new things to keep ahead of big competitors, continuously improving because they have to, unable to rest on a big balance sheets or dominant market positions.

Small and family businesses "live" economic resilience, innovation and how to lift incomes by improving productivity - as business owners know all too well, they are mostly the last to be paid.

Reform to boost productivity, competitiveness and economic resilience have to start with "energising enterprise" and turbo-charging the small and family business engine room of the economy.

It is essential that we create a more supportive entrepreneurial ecosystem to inspire Australians to turn an idea into investment, to build a business, to take on the risk and responsibility of a new enterprise and to employ that extra person.

We need to give enterprising and passionate people the best chance to be successful, even when the market is tough.

Since August last year I have been talking about 14 steps to energise and support Australia's more than 2.5 million small businesses.

Early action on a number of these steps as an initial focus would see immediate and positive impacts for small businesses around the country.

Supporting investment in small business through targeted tax incentives would be a great place to start.

We know that it is in the early years of a business - the first three years in fact when they are most financially vulnerable, and the constraints of cash flow can impact business growth and sustainability.

A tax discount or offset scheme, allowing new businesses to retain more of their initial earnings, which would reward entrepreneurial risk-taking and support reinvestment into the business. This would greatly improve business survival and long-term success and is worth serious consideration.

A more generous and durable instant asset write-off measure would drive investment in productivity-lifting machinery and equipment.

Reinstating and retaining technology uptake and energy efficiency incentives would support deeper digital deployment, and operational cost and emissions savings.

New tech and AI adoption offer the promise of streamlining the "business of running the business".

Most small business owners do the right thing each and every day in fulfilling ever-increasing and more complex, and onerous compliance and regulatory obligations.

A renaissance in the rigour and discipline around "right-sizing" regulation will properly recognise that small businesses are not just "shrink-wrapped" versions of Australia's big corporate businesses.

It will improve the way new impositions are devised, and existing ones are implemented and enforced.

A genuine "seeing" of small business would require every cabinet submission, regulatory recommendation and new policy or program proposal, to include a small business impact statement.

Establishing a Prime Minister's �Թ�� Award would recognise and celebrate excellence and inspire the next generation.

A fair dinkum fair go for small business in a more competitive economy would lead to improved access to affordable and timely justice to enable smaller firms to enforce fair trading protections via a tribunal-like �Թ�� and Codes List in the Federal Circuit and Family Court of Australia.

Banning unfair business practices that distort competition and harm small businesses needs to be a priority.

These are all doable and small business owners and industry associations are rightly calling for decisive action.

It is not just for the benefit of small business but will deliver dividends for the nation.

Of course, "rare-earths" and other potential "big wins" can play a role in our future economy, but a greater focus on the "exceptional grit" of small businesses people that are our economic foundation is essential.

Small Biz Ombudsman welcomes new Minister

Emily Carter — Mon, 12 May 2025 05:35:01 +0000

Small Biz Ombudsman welcomes new Minister Emily Carter Mon, 05/12/2025 - 15:35

12 May 2025

Prime Minister Anthony Albanese has announced the returning Government’s new Ministry with the Hon Dr Anne Aly appointed to Cabinet as the Minister for �Թ��.

The Australian �Թ�� and Family Enterprise Ombudsman has welcomed Dr Anne Aly to the small business portfolio and the important retention of the Minister for �Թ�� as a Cabinet-level appointment.

“I congratulate Dr Anne Aly on her appointment as the Cabinet Minister for �Թ�� and look forward to working with her on the implementation of the Government’s small business election commitments”, Mr Billson said.

“There are many opportunities to further support small and family business at a time when many are reporting really challenging trading conditions, and I look forward to collaborating with Minister Aly and her colleagues to progress initiatives to ‘energise enterprise’.

“I also congratulate former �Թ�� Minister the Hon Julie Collins on her reappointment to serve as a Cabinet Minister in the important agriculture portfolio when many farming enterprises are small and family businesses. The small business community and I thank Minister Collins for her encouragement, support and interest in small and family businesses over the last three (3) years as our Minister.

“My congratulations also go to the new Assistant Treasurer and Minister for Financial Services, Dr Daniel Mulino on his appointment and for the significant influence this role has on the taxation, regulatory and operating environment that is so important to small and family businesses. I enjoyed a good working relationship with Dr Mulino’s predecessor, the Hon Stephen Jones and his office, and look forward to establishing a similar strong collaborative relationship with Dr Mulino and his office.

“As greater attention is given to lifting productivity and improving the supportiveness of the economic environment within which enterprising women and men consider forming, growing, investing in their business and taking risks to create economic and employment opportunities, I look forward to continuing to work well, cooperatively and with purpose with Dr Andrew Leigh in his Assistant Minister role, which now has an added productivity focus”, Mr Billson said.

We need to keep putting wind in the sails of our enterprising women and men

Emily Carter — Sun, 11 May 2025 23:49:27 +0000

We need to keep putting wind in the sails of our enterprising women and men Emily Carter Mon, 05/12/2025 - 09:49

12 May 2025

Originally published in The Canberra Times

By Bruce Billson

As we return to business as usual after the election, I am hopeful that the incoming government will have a very strong and prominent focus on small and family businesses. It is urgent and necessary.

This post-COVID era has been particularly challenging for smaller enterprises. Most recently, increased input costs, profit margin squeeze and customer caution and restraint have profoundly impacted viability. Increased complexity of compliance and regulation, and in a number of cases, the threat of much stiffer consequences for missteps, have significantly impacted the "business of running a business" for small business owners. The risk-reward balance has tilted more toward things of concern, away from the joys and benefits of business ownership.

This challenging post-COVID operating environment isn't what is needed to turn around the decreasing small business share of the national economy and private-sector employment over the last nearly two decades.

The re-elected government has made a number of useful small business commitments, including extending the instant asset write-off for small businesses for another year to enable the deduction of the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by June 30, 2026.

While this is a very positive step, small businesses will need more certainty and durability in this measure to support increased productivity across the sector.

It is also encouraging that eligible small and family businesses will stand to benefit from the additional modest energy bill relief and targeted tax cuts for sole traders, contractors and many unincorporated business owners.

I am particularly pleased by commitments to introduce unfair trading practices protections to small businesses (as we have long advocated), extending unfair contract terms protections to all franchising contracts and strengthening the enforcement of the Franchising Code of Conduct and other fair-trading safeguards.

Broad consultation with small businesses will be important to ensure that the proposed banning of non-compete clauses does not result in business value, IP and client lists walking out the door with a former employee.

The post-election discussion about a renewed effort to boost productivity will be welcome by small businesses as productivity improvement occurs in the workplace, and the vast majority of these are small employers.

While there has been some commentary about the increased growth of small businesses over recent months, the National �Թ�� Strategy reports that the number of small businesses grew at an average annual rate of 3.4 per cent over the three years between 2020-21 to 2023-24.

Over this period, the health care and social assistance and transport, postal and warehousing industries had the highest annual growth rates with the number of small businesses growing on average 7.5 per cent and 6.7 per cent, respectively.

The strongest annual average growth in the health care and social assistance industry occurred in the other social assistance services industry group, which includes disability assistance services. And while the number of small businesses in this group grew 38 per cent on average over the last three financial years (2020-21 to 2023-24), it is important to recognise that 64 per cent of small businesses in the other social assistance services industry were non-employing in 2023-24.

This is a trend also being seen in the courier pick-up and delivery services industry such as Uber drivers, where the number of small businesses grew at 25 per cent on average over the three years from 2020-21 to 2023-24, with 89 per cent of the small businesses in this industry non-employing in 2023-24.

I applaud these small business owners who have entered the market in tough times with passion and enthusiasm to make a positive and rewarding contribution to their communities and the nation.

But I am concerned that while we have seen modest business growth in two industries, these are less likely to be the kind of small businesses able to create more growth by employing staff. Only 3 per cent of surviving non-employing businesses became an employing business in 2023-24, the lowest rate since this ABS data series started in July 2007.

Just like we need to be vigilant about highlighting unintended consequences of policies, we need to bring greater focus to less apparent aspects of an evolving small business community and economy.

At every level of government, we need to understand the nuances of small business, which includes changing gender profiles of small business ownership, issues for regional business owners and the challenges for culturally and linguistically diverse small and family business owners.

Female-led businesses are growing significantly as a proportion of business ownership, and yet, still, women in business are underestimated and undervalued, and we know this from our on-the-ground discussions with small business owners.

Over half of the small business owners in the transport, postal and warehousing industries who were assisted by an ASBFEO case manager in the March quarter of 2025 spoke a language other than English at home, compared to 24 per cent across all industries.

A total of 22 per cent of the small business owners in the health care and social assistance industries assisted by an ASBFEO case manager in the March quarter of 2025 were in regional Australia (compared to 18 per cent across all industries).

These numbers are important because if we can't see people, all enterprising people, then we can't make or evaluate policy or programs for them. We can't design programs for them, and we can't give them the voice they deserve in the discussions and consultations about policies.

We don't hear about these issues enough, and we're not seeing the true picture of their valuable contributions. And we need to do better.

To have a strong and resilient economy, we need small businesses and their owners to thrive. They make a vital contribution to their local economy and to the national economy, and we need to keep micro, small and family businesses fairly and squarely in the sights of policy makers and regulators.

We need to keep putting wind in the sails of our enterprising women and men through positive policy action to provide the best possible operating environment to support the best prospects for success.

A side hustle is increasingly common. So why is so much of this work going unseen?

Emily Carter — Mon, 28 Apr 2025 01:07:50 +0000

A side hustle is increasingly common. So why is so much of this work going unseen? Emily Carter Mon, 04/28/2025 - 11:07

28 April 2025

Published in the Canberra Times

By Bruce Billson

The small business landscape looks different from 30 years ago, but what hasn't changed is the passionate and hard-working small business owners and entrepreneurs who are building businesses across the country to delight their customers and clients.

We are seeing important changes in the demography and journey of these enterprising women and men.

In the 1980s, there were twice as many small business owners aged between 30 and 49 as there were aged over 50. Now the most common age of a small business owner is 50 years, but in 2006 it was 45. And there are 22 per cent of small business owners aged 60 and over.

When we look at the under-30 group, 8 per cent of business owners are currently under the age of 30. And it's interesting if you go back to 1976 because it was over twice that number at 17 per cent.

The proportion of the younger generation that are part of the small business community, is far less than it was.

What we are seeing though, is young entrepreneurs engaged in the digital economy on social media as content creators, digital nomads and starting-up new and exciting businesses. And while start-up rates vary across OECD countries, young people are more likely to be starting a new business than older adults.

According to the OECD, "About 9 per cent of young people in the OECD were working on a start-up relative to an overall rate of 8 per cent between 2018-22. Young people are also active in managing new businesses with a share of 6 per cent in the period 2018-22, which was above the overall population (5 per cent)".

Yet, young people are much less likely to be operating an established business than adults over 30 years. The large drop-off between ownership of a new business and an established business suggests that young entrepreneurs often struggle to develop their business into one that will be a relatively stable source of income and perhaps create jobs for others." (OECD define youth as 18-30).

It is regularly reported that younger entrepreneurs are in no position to access the finance needed to acquire an established business.

I worry that retiring business owners not being able to secure full value for often decades of diligence and dedication to their business and aren't able to achieve the hoped-for retirement nest egg.

Too often, business owners do not follow their own lead in making superannuation contributions for their team.

Another concern is that we don't have a true picture of the number of young small business owners and entrepreneurs.

I wonder if the many young people who run and manage a "side hustle" are identifying themselves as small business owners.

An office worker whose passion and creative outlet is baking which started out as something they did for friends and family on weekends, is now getting requests from around the community for the handcrafted baked goods. Do they identify as a small business?

If we can't see all the small businesses in all their passion and glory, then how can we influence and shape small business policy that reflects what's needed to make sure our small and family businesses can continue to make their important contributions to our economy and our communities.

Policymakers and regulators need to see and understand the breadth of the small-business ecosystem and their needs to deliver good policy and effective regulation. At ASBFEO we are currently researching the extent that these entrepreneurs may be omitted from current statistics.

In a recent Westpac study, almost half of Gen Z said their reason for going into a business was because of seeing a successful entrepreneur.

The Gen Z group are really motivated by what they see other entrepreneurs doing. And thankfully, we are still observing strong next-generation interest in entrepreneurship being passed down from generation to generation, often with an eye to enterprise opportunities both within and outside the family business, motivated by their passion.

The importance of mentors and inspiring business owners and entrepreneurs can't be overstated.

Having people around you that are good sounding boards, that have been in business themselves, who can even talk about the way they've handled challenges in their business life is invaluable to aspiring small business owners - a kind of grounded and practical crowd-sourced solutions factory.

This peer support and access to wisdom and insights is also a compelling reason for joining business incubation and acceleration groups and industry associations.

It is a fantastic learning journey for start-ups and new business owners to follow the journeys of those that inspire them.

But young entrepreneurs need help too and regularly contact our office for assistance. This is most common in industries such as personal training and personal services (e.g. hair and beauty services).

We hear many stories where young entrepreneurs struggle with some aspects of the "business of running their business". We helped an independent contractor in the beauty industry who had resigned after being bullied at work by her hirer - her hirer was refusing to pay her outstanding invoices.

We provided the contractor with information on the dispute resolution processes, including how to prepare a letter of demand. This sort of useful guidance and advice can be found on the ASBFEO website www.asbfeo.gov.au

We continue to support small business by making information available and easily accessible. It is not our gift to make every business succeed but it is our mission to make sure no business fails because the owner or entrepreneur didn't know about something that might have helped.

We need to keep supporting and encouraging the next generation of aspiring business owners and entrepreneurs to follow their dreams because there is much joy to be found in leading and owning your own business.

Help at hand for small businesses

Emily Carter — Sun, 13 Apr 2025 23:16:38 +0000

Help at hand for small businesses Emily Carter Mon, 04/14/2025 - 09:16

14 April 2025

Originally Published in The Canberra Times

By Bruce Billson

Vibrant, culturally and linguistically diverse small businesses are essential to growing our economy.

WE ALL depend on the small and family-run businesses in our lives - from your local café to your dog groomer, GP or landscaper.

The more than 2.6 million small businesses around the country are a vibrant and diverse group of passionate people who are carving out small business livelihoods and making significant contributions to workplaces, communities and the economy.

Combined, small businesses generate 33 per cent of our nation's gross domestic product, and provide jobs for 5.36million people - 42 per cent of the private workforce.

These enterprising women and men are the lifeblood of our communities and key drivers of the engine room of our economy.

This vital small business contribution is widely valued and recognised. What might be less obvious is the diversity of small business owners.

The dream to be your own boss while pursuing a passion is what motivates many Australians to be small business owners.

The drive to create your own opportunities, to imagine better possibilities for yourself and your family, to commit with optimism and courage to a big plan than involves risk, investment and determination is in the DNA of people who lead and build their own business.

This make-my-own-opportunities quality that so many small business owners display in spades when pursuing fulfilling livelihoods seems to resonate with enterprising people when it comes to life choices.

Is a decision to leave one's homeland, travel vast distance over the oceans to pour one's heart and soul into building a new life in Australia, inspired by the prospects of a better future, akin to a decision to build a business?

One out of three small business owners (34 per cent) were born outside of Australia, which is a greater proportion than Australia's general population, of whom 28 per cent were born overseas.

More than half (53 per cent) of small business owners are second-generation migrants with a father and/or mother born overseas. Nearly one-quarter of small business owners (23 per cent) speak a language other than English at home.

Small business owners who were born overseas are more likely than those born in Australia to work in sectors such as transport, postal services and warehousing, as well in the hospitality and accommodation service industries.

Small business owners around the country come from a wide range of ancestries, cultural and linguistic backgrounds and bring a vibrancy to our small business landscape that nourishes our communities.

It is likely that important and growing First Nations Australians small business owners are under-represented in the limited data that is available, with only 1 per cent of small business owners self-identifying as First Nations Australians. About 3 per cent of the population self-identify as First Nations
Australians.

The main sectors where First Nations Australians are active include construction, personal services, healthcare and social assistance, and administrative and support services.

Self-employment and creating livelihood opportunities for communities through Indigenous entrepreneurship is increasingly a path being taken and supported for economic self-determination.

We need to celebrate and honour this vibrant and positive contribution of small business to our nation, to our economy and to what we enjoy as consumers.

Respect and appreciation for the disproportionate contribution of our culturally diverse small business owners and leaders also means we need to be responsive to the particular challenges and needs of all small and family business owners.

Supply Nation, Indigenous Business Australia and Many Rivers are just some of the remarkable organisations supporting, enabling and building capacity for successful Indigenous businesses.

At ASBFEO, we are also aiming to make a meaningful contribution. Our website resources are convertible into more than 100 community languages and our consultation and outreach activities has a particular eye to better support our culturally and linguistically diverse (CALD) small business
community. CALD business owners are also a priority focus for our communication efforts that aim to make sure no business fails because the owners didn't know about something that might have helped.

The ASBFEO assistance data shows that small business owners who speak a language other than English at home are more likely to have difficulty recovering money they are owed.

In fact, of small business owners who speak a language other than English and who needed active case management from ASBFEO case managers, almost 60 per cent had a payment dispute. This is almost double the number of English-speaking small business owners who needed active case management assistance from ASBFEO for payment dispute in the March 2025 quarter.

Sadly, payment disputes across the small business landscape are an ongoing problem for many small and family businesses.

A contractor in the ICT industry of CALD background was owed thousands of dollars for the work they had undertaken. When the contractor's business customer refused to respond to requests for payment, the contractor reached out to ASBFEO for help.

When they advised the business customer that they had contacted ASBFEO for assistance, pleasingly the contractor was promptly paid the full amount owed.

ASBFEO has helped over 50,000 small business owners with a wide range of issues, and our rich data and evidence are important elements to sharing small business stories and for our advocacy. We have a range of helpful guides, tools, and resources available through our website for small businesses on the issues that affect them.

The translation facility hopefully means that small business owners seeking information can access this in a language that is comfortable and more easily understood, and valuable information is not lost in translation.

Successful, vibrant, culturally and linguistically diverse small businesses are essential to growing our economy and supporting our communities. We need to keep shining a light on these optimistic and hard-working small business owners who are passionate and willing to follow their dream, and who will inspire the next generation of entrepreneurial small business owners and leaders.

Women owned small business

Stef Cox — Tue, 01 Apr 2025 01:32:35 +0000

Women owned small business Stef Cox Tue, 04/01/2025 - 12:32

31 March 2025

Originally published in The Canberra Times

By Bruce Billson

More and more women are creating new businesses to find solutions to everyday problems.

About 35 per cent of small businesses are owned or led by women.

This is double the rate in the 1970s.

These enterprising women are sharing their ideas and building businesses from their ingenuity, life experience and willingness to "have a go" despite the barriers they face. And numbers of women- business leaders share with us that being their own boss is the best way to contend with the balancing act of juggling life, livelihoods, family and personal objectives (while not necessarily lightening the load).

The 2021 ABS census revealed that 68 per cent of self-employed females are working part-time, compared to 47 per cent of female employees in the overall workforce who work part-time.

In terms of ongoing active economic contribution across the sexes, 22 per cent of self-employed business owners are aged 60 and over, compared to 9 per cent of employees.

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. 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.

It is often too easy for policy makers to assume knowledge or believe that data reflects the whole small business picture. At ASBFEO, we know you have to dig deeper and understand that without showcasing the lived experience of women small business owners or having boots-on-the-ground contact with them, we might miss the contributions and valued input from this vital element in the small business ecosystem.

In the ASBFEO survey of women owned and led businesses, we asked respondents to choose their top three barriers from a list that included access to capital, lack of networks/mentorship, other responsibilities outside work, unconscious bias, regulatory barriers/red tape and risk appetite.

And one response to our survey noted "Your list of items WOEFULLY misses the actual issues we face" and this really highlighted for me, the pressures that entrepreneurial women deal with every day.

Where is the question about childcare and employee share ownership, she'd decried. 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.

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.

A significant frustration for women business leaders is the impact of responsibilities outside of work and how it affects their ability to deliver their business opportunity in a way that reflects their business personality and objectives.

In fact 35 per cent of survey respondents in the ASBFEO survey included "responsibilities outside of work" in their top three barriers.

There were many comments emphasising how better access to support services for the caring responsibilities that these women juggle, is also needed. Being able to have more "headspace" to innovate and invest valuable time and resources into their businesses was called out in many survey comments.

We know that all small businesses can struggle to access finances, but concerningly 38 per cent of women who completed the survey listed access to finance as another of their top three barriers.

Sadly, a small number of survey responses indicated that some women had been told that they needed a male on the application form to be approved.

We have taken some strides since the 1950s but obviously not enough.

It is encouraging to see some financial institutions trying to tailor financing options and services designed specifically for women in business.

Interestingly in the ASBFEO February �Թ�� Pulse, increasing numbers of all small businesses and start-ups looking to invest in sustainability initiatives were researching alternative funding sources such as crowdfunding and venture capital options.

Making sure that these empowered women who are willing to take risks and back themselves to start a business can access data which reflects their experiences and "sees them" is a priority for my office over the coming 12 months.

We are prioritising our understanding of new datasets to better understand the "true" extent of female entrepreneurs in the small business ecosystem. And we are particularly interested in the data and numbers which tell the female sole trader story.

We will be doing this through the ASBFEO �Թ�� Pulse and the data portal on our website at www.asbfeo.gov.au. We will continue to share our excellent research and high quality data analysis with federal colleagues to tell the story of what being a woman leading a small business is like, what people are thinking of doing and the decisions they are making is a crucial element of the ASBFEO's work over the next 12 months.

Owning and running a small business can be a wonderful and purposeful journey for women who have a passion for their business and its role in the small business environment.

Successful small businesses are essential to growing our economy and supporting our communities, and we need to do more to show it is a pathway worth taking, particularly for women.

2025-26 Federal Budget, instant asset write-off, insolvency, small business conditions

Emily Carter — Thu, 27 Mar 2025 04:21:33 +0000

2025-26 Federal Budget, instant asset write-off, insolvency, small business conditions Emily Carter Thu, 03/27/2025 - 15:21

26 March 2025

TRANSCRIPT

Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson interview with Stephen Cenatiempo.

Radio 2CC Canberra

Subject: 2025-26 Federal Budget, instant asset write-off, insolvency, small business conditions

Stephen Cenatiempo

Businesses are on their knees, and they desperately needed relief too. Bruce Billson is the Australian �Թ�� and Family Enterprise Ombudsman and joins us now. G’day Bruce.

Bruce Billson

Steve, morning to you and your listeners.

Stephen Cenatiempo

What did you make of the budget last night? What was in it for small business?

Bruce Billson

Oh, I don't think there'll be many small businesses punching the air today, Steve. I think they were looking for, you know, a real plan that said, this is how we're going to recover so many small and family businesses. Here’s key measures that will really change the setting, improve the trading conditions, make the environment more supportive after quite a period of challenging times. That recovery plan, I think, was what people were looking for.

There's a little bit of relief from the measures that you just touched on. Energy bill relief - I mean, that's not going to, you know, shift the dial much but I don't think it'll be sneezed at either at a time when small businesses are really struggling. Margin squeeze - Consumers are keeping money in their pocket and dialling back on it, on discretionary expenditure. And with many small businesses just struggling to keep their heads above water right now.

Stephen Cenatiempo

Because I made the point earlier this morning that, you know, things like, you know, chicken’s gone up so many per cent, coffee’s gone up 10%, bread’s gone up 21%. All of this is hitting small business as well as it hits consumers. But you talked about that energy rebate and for every average consumer might see some relief out of that but most businesses spend about four times as much as consumers on energy. And it's not just electricity. Your gas bills have gone up as well. Rents have gone up. Everything is going up.

Bruce Billson

Yeah, and that's the thing that businesses are pointing to, that you know what’s more widely discussed is cost of living pressures and everyone knows how that's hitting households. They’re cost of doing business pressures, amongst small and family businesses.

And you’re right, the energy has gone up eye watering numbers. You know, we were arguing some decisive action on insurance. I mean, the insurance that small businesses are having to pay is really quite crippling for some. Unlike households who make that courageous decision, Steve, to under insure or maybe not insure at all, you don't get that choice when you’re a business.

You've got to have certain insurances, otherwise you won't engage in trade and commerce, it’s as simple as that. So (an) unavoidable pain point, and there are many at the moment, and that's what people are hoping for. You know, a sign that, you know, some decisive action will lift them out of this troubling period post-COVID.

Stephen Cenatiempo

It points to a broader problem is that the lack of productivity has been a problem in Australia for years now, and we're seeing that go backwards. This was an opportunity to improve productivity by getting small business back on track.

Bruce Billson

Oh, absolutely. And the thing that's often missed is we've been sleepwalking into a big corporate economy. The share of GDP produced by small business, Steve, let's celebrate the 33% of GDP that small businesses contribute. That's fantastic. But fifteen years ago,it was 41%. You know, the two in every five private sector jobs that, you know, small businesses make possible. That's super. And that deserves to be the point. But it was 1 in 2, not so long ago.

So we're seeing small businesses, you know, shrinking as a share of the overall economic pie. And there's complexity, challenge, disruption, all sorts of things going on in the business environment. So even things around the regulatory burden, you know, many talk to me about how it's no fun anymore, that they’ve got so much compliance.

The joy that they used to get isn’t there. There was a chance to reboot a renaissance in right size regulation. The incentives that are there to say to someone, hey, take this chance, make your own livelihood opportunities and help create those for others.

We don't even know what's happening with the instant asset write-off. There was no significant signal that said, gee, we really value what we do. We know you’ve gone through a tough time, insolvencies are at record highs, although arguably, admittedly, as a percentage of operating businesses is not as high as it's been. But every one of those insolvent businesses is a tragedy and story of disappointment for the people and the families involved.

I guess they were looking for a signal to say, hey, we hear you, we see you, here’s a really positive, constructive action plan to get you back on track and contributing all you can. But I guess we'll have to wait to see what comes through the election cycle now.

Stephen Cenatiempo

I want to touch on two things you mentioned. The instant asset write-off - when we spoke to CPA Australia yesterday, they talked about the need for businesses to embrace technology to improve their efficiencies. Now, the instant asset write-off was an opportunity for businesses to invest in technology and other things of course. The fact that we don't know whether that's going to continue or not, that's a massive anchor on trying to move that, make that transition on a technological basis.

Bruce Billson

You're absolutely right, and let's remember last year, Steve, it passed the parliament with like 48 hours to go. And there were other measures, important and I think welcome measures to encourage businesses to invest in energy efficiency, products and systems for their business, you know, photovoltaic systems, batteries. That was a good measure.

But because it was a new measure, no one knew quite what was eligible and what wasn’t. Well, that legislation passed with 48 hours of the financial year left. I mean, how are you going to go and source a new solar system to put on top of your business premise? They have to it up and have it, you know, as the tax office requires, installed, operating or ready to operate in 48 hours.

I mean, come on, that's not taking it seriously. And that's why predictability around incentives is important, that people can plan for the actions they're going to take to get their mojo back and get, as I say, energised enterprise. They can really, you know, invest so that they can lift productivity, they can succeed in an increasingly challenging environment.

And let's not forget the complexity for many small businesses, and the point that was made in your interview yesterday, investing in digitization and digital technologies, that is dealing with the business of running the business, so you've got more time to delight customers, to think of new ways of creating value, new ways of driving the business forward and even reaching new customers through those digital channels.

So that's really important. And a lot of people were saying, where's the incentive there to invest in that kind of business-enabling, business-electrifying investment. So that's what people are looking for. It wasn't there in the Budget and now all are hoping that small business is the key battlefront for the upcoming election, because it's so vital to our economy.

Stephen Cenatiempo

Bruce, you mentioned insolvencies too, and there's always going to be an attrition rate in small businesses. Some small businesses should never have started in the first place, but we're seeing otherwise viable small businesses go under at the moment because of these pressures. And the mentality that small business owners are millionaires. They can look after themselves, but that's not the truth.

And I think we need to be aware of the fact that small business owners are just like the rest of us, doing their best. And even the ones that are otherwise successful are struggling at the moment.

Bruce Billson

Well, let me share with you and your audience Steve, some red hot facts.

Last full year of taxation information, 46% of incorporated small businesses did not report a profit.

For the million and a half small business owners that are self-employed, independent contractors and that, that is their full-time livelihood endeavour - three quarters of that group, Steve, take home less than average weekly wages.

The average age of a business owner is 50. 8% are under 30. Where's the young people? Used to be 17%. And just last year and the full year’s figures, it was the lowest percentage. It's 3% of non-employing businesses taking on their first employee.

So, I mean that picture says well where is that engine room of the economy? We need to make sure it's firing on all cylinders because that's vital for livelihood, the vitality in our communities. And if you happen to be living in a community where you don't have a big government department, a big corporate or a big mine, guess what the economy is? It's small and family businesses and they deserve wind in their sails, not just little things that reduce the wind in their face.

Stephen Cenatiempo

I couldn't have said it better myself. Bruce, great to talk to you this morning.

Bruce Billson

Take care sir.

Stephen Cenatiempo

Bruce Billson, the Australian �Թ�� and Family Enterprise Ombudsman.

Budget continues targeted relief as small businesses hope for recovery

Emily Carter — Tue, 25 Mar 2025 10:50:43 +0000

Budget continues targeted relief as small businesses hope for recovery Emily Carter Tue, 03/25/2025 - 21:50

25 March 2025

The Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson says tonight’s 2025-26 Federal Budget was ‘the sequel’ to last year’s, offering modest targeted measures to help small and family business deal with specific current pain points and headwinds.

The Ombudsman said that struggling small businesses will have to look to and hope for election commitments that present a decisive positive action plan to ‘put some wind in their sails’, lift their prospects for success and to turn around a post-COVID period of tough trading conditions.

“Small and family businesses facing punishing input costs that are squeezing margins will welcome the continuation of modest energy bill relief,” Mr Billson said.

“Cost-of living increases are also cost-of-doing-business increases, and we need to make sure small businesses can keep their heads above water and can continue to support their employees and their communities. Every saving helps the small businesses who are doing it tough and struggling to keep the lights on, as they hang on hoping to feel the benefits of forecast economic improvement.

“The Budget’s reiteration of earlier announced measures to introduce unfair trading protections for small business, expanding unfair contract terms protections and more resources to the ACCC to enforce industry codes, including for franchising, to support fairer conduct between parties with profound power imbalances, are welcome and important steps.

“The additional mentoring and coaching support for First Nations entrepreneurship and participation in Government procurement are also helpful, along with continuing skills support, efforts to improve trades mobility and additional resources for ASIC to crack down on illegal phoenixing.

“These kinds of measures reflect a number of the elements in ASBFEO’s 14 steps to energise enterprise at this time of a surge in insolvencies, a reduction in the economic and employment contribution of small businesses, an ageing small business community and a record low percentage of non-employing small businesses taking on their first employee.

“Small business needs to be front of mind for our policy makers and regulators. 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. That’s why we have proposed 14 steps designed to give more support to the nation’s 2.6 million small businesses,” Mr Billson said.

“Broad consultation with small businesses will be important to ensure that the proposed banning of non-compete clauses does not result in business value, intellectual property and client-lists walking out the door with a former employee. With the vast majority of small businesses already doing the right thing in meeting their tax obligations, it will be necessary for the additional $155.5 million to the ATO to tackle under-reporting and ‘cashies’ is properly targeted so that it does level the playing field and not needlessly terrify tax compliant businesses.

Particular Budget measures of interest to small and family business will include:

The Government will provide $722.8 million over four years from 2025–26 to deliver increased support for apprentices.
$7.1 million over two years from 2025–26 for the Australian Competition and Consumer Commission to strengthen regulatory oversight of the Franchising Code of Conduct.
$0.8 million in 2025–26 for Treasury to develop and consult on options to extend protections against unfair trading practices to small businesses and protect businesses regulated by the Franchising Code of Conduct from unfair contract terms and unfair trading practices.
$23.9 million over five years from 2024–25 to strengthen the Indigenous Procurement Policy to boost opportunities for First Nations businesses to grow and create jobs.
$3.4 million over three years from 2025–26 to increase the participation rate of First Nations women in business through a place-based business mentoring and coaching program, codesigned and delivered by First Nations businesses and organisations.
$2.9 million over three years from 2025–26 to assist fresh produce suppliers to understand and enforce their rights under the Food and Grocery Code to achieve more favourable commercial outcomes when negotiating with large grocery businesses.

“These are useful steps in the right direction, but there’s still a lot to do,” Mr Billson said.

“We need to get small businesses beyond surviving and into thriving. This means they need to have the confidence that they have a level playing field, dependable incentives and supportive conditions to grow and invest.

“Small business is the engine room of the economy. We must ensure that small and family business can fire on all cylinders. We welcome Budget announcements that help put the small and family business economy back on the right trajectory”. Mr Billson added.

The Government’s small business statement can be found at https://budget.gov.au/

MEDIA CONTACT: 0448 467 178 | www.asbfeo.gov.au

ACCC Supermarket Inquiry highlights need for continuing vigilance to support fairness

Emily Carter — Mon, 24 Mar 2025 05:57:42 +0000

ACCC Supermarket Inquiry highlights need for continuing vigilance to support fairness Emily Carter Mon, 03/24/2025 - 16:57

24 March 2025

The Australian Competition and Consumer Commission’s (ACCC) Supermarket Inquiry report confirms that the supermarket sector is highly concentrated and unduly challenging for small business suppliers, says the Australian �Թ�� and Family Enterprise Ombudsman.

Mr Billson welcomed the release of the ACCC’s report and expressed encouragement at the Government’s continuing focus on the harms arising from acute market concentration.

“Just as a lost visitor seeking directions might receive the wry response: ‘Well, I wouldn’t start from here’, so those looking for a properly functioning supermarket sector - capable of delivering durable best value for consumers and a fair go and fully respectful commercial dealings between suppliers and big retailers - would not start from here”, Mr Billson said.

“But we are where we are, and we must stay vigilant seeking to improve the competitiveness and fairer conduct between the parties in the highly concentrated supermarket sector.

Mr Billson praised the ACCC for its diligence, rigour and deftness in examining the true state of competition and fair dealing in the supermarket sector and consequences for consumers, suppliers and retailer profits.

“The power and information imbalances between the major supermarkets and suppliers are immense, and that’s why the Food and Grocery Code and Horticulture Code are so important.

“Any supplier or producer wanting scale of any kind to support efficient operations, innovation and capital investment has few options other than to deal with the big supermarkets. With so much invested and so much at stake, this dependency means that only a very courageous supplier that wants a battle with such a big and essential customer”, Mr Billson said.

The ACCC estimates that Woolworths and Coles together account for 67% of supermarket grocery sales nationally, while Metcash-supplied independent retailers have been losing market share over time.

The ASBFEO’s experience accords with the ACCC’s findings that:

many smaller suppliers of fresh produce and some packaged groceries are solely dependent on either Woolworths or Coles
fresh produce growers often do not have the information or certainty they need to make efficient investment decisions
some suppliers’ dependence on Coles and Woolworths means they take on extra costs and risk.

“These conclusions reinforce the importance of the Australian Government’s commitment to introduce protections for small businesses from unfair business practices”, Mr Billson said.

“This commitment reflects 4 years of advocacy by the ASBFEO and carry forward one of our 14 steps to energise enterprise.

“The ASBFEO has warned that Australians are sleepwalking into a ‘big corporate’ economy.

“We have proposed 14 steps that will energise enterprise and help put the small and family business economy back on the right trajectory, to be able to fully realise its potential to contribute to livelihood opportunities, higher living standards and community vitality”, Mr Billson said.

The ACCC’s report notes ASBFEO’s citing of results of the Independent Reviewer Annual Report, which shows that more than 41% of surveyed Woolworths and Coles suppliers reported ‘fear of damaging a commercial relationship’ as an impediment for raising an issue with the supermarket. The figure was 21% and 28% of surveyed ALDI and Metcash suppliers.

The Food and Grocery Code of Conduct was introduced to improve standards of business behaviour in the food and grocery sector – including the conduct of retailers and wholesalers towards suppliers.

From 1 April 2025, the ASBFEO is also pleased to help arrange mediation and arbitration under the new Code. To access our service, parties in dispute should approach us and we will assist with the process, including selecting a mediator or arbitrator from our list.

If you are a qualified arbitrator or mediator, we are also keen to hear from you should you wish to join our list by emailing us at info@asbfeo.gov.au.

More information about ASBFEO is available on the ASBFEO website.

MEDIA CONTACT: 0448 467 178 |media@asbfeo.gov.au

Tradies and sub-contractors to be paid on time and in full, in ‘fairer go’ for construction

Emily Carter — Thu, 20 Mar 2025 04:08:53 +0000

Tradies and sub-contractors to be paid on time and in full, in ‘fairer go’ for construction Emily Carter Thu, 03/20/2025 - 15:08

20 March 2025

The Australian �Թ�� and Family Enterprise Ombudsman (ASBFEO) is encouraged by the Australian Government’s response to the Murray Review of Security of Payment Laws, and welcomes the announcement of further action to help ensure tradies and subcontractors are paid on time.

Mr Billson said the Government’s commitment to extend protections against unfair business practices to small businesses, will also help address harmful conduct in the construction sector.

“This is welcome action to support tradies and subcontractors. Cashflow is the oxygen of enterprise and, as small businesses in their own right, those businesses ‘on the tools’ are vulnerable to harm by malicious action from other businesses”, said Mr Billson.

“If those in the building supply chain can’t have the confidence that they will be paid in full and on time, they are facing constant financial insecurity – and they start finding it hard to pay their own subcontractors in time. It’s not fair and the construction sector insolvency number are frightening.

“Our assistance helpline is getting more and more calls from small businesses, tradies and subcontractors worried that not only are their invoices not being paid on time, but that their business customer might never pay as they are insolvent.

“We need to support the smaller players. They need the support of government protections from unfair or harsh behaviour by bigger, stronger players.

“It is soul destroying and grossly unfair for a sub-contractor to see a builder they have done good-quality completed work for choose not to pay and then shut down to avoid paying them – only for the non-payer to reemerge as a new company, with the same directors, coming through unscathed and living the same good life, while the sub-contractor and other suppliers carry the financial pain.

“For some in the construction sector, this illegal ‘phoenixing’ seems to be a business model that is dodgy and damaging. We have had too many sub-contractors contacting us to help them deal with the harm this appalling practice causes. One was hit by this cruel construction industry con four times! It can happen to anyone, even experienced contractors and subcontractors.

“The boost to ASIC funding to identify and take enforcement action on illegal phoenixing will help improve the commercial environment, particularly in vulnerable sectors such as construction.

“ASBFEO has emphasised that active stewardship and effective systems for monitoring, reporting and promptly addressing suspected breaches of the Supplier Code of Conduct are critical to enforcing the positive duty on suppliers to take measures to prevent and discourage breaches”, said Mr Billson.

“Imbalances in the bargaining power of small business means that combating unfair contract terms and unfair trading practices is critical for small businesses who otherwise have limited options.

“Small business also needs to be able to pursue their commercial interests and not rely solely on the hope that the regulator takes up their case in time to help.

“Currently, the cost of legal action means that small businesses simply can’t afford to pursue their legitimate commercial interests. Our proposal to create a Federal �Թ�� and Codes List in the Federal Circuit and Family Court of Australia provides a low cost and timely way for businesses to enforce their rights.

“We have also been advocating for a ‘Good Business Pays’ recognition as a positive acknowledgement of the vast majority of businesses that pay their suppliers in a timely way, fully meet staff pay and entitlements obligations and properly attend to their tax obligations.

“We need small businesses – tradies and contractors – able to focus on their work, not on whether they will get their fair pay and chasing unpaid invoices when they should be ‘on the tools’.

“Security of payment is vital for small businesses – reliable cashflow is critical both to their survival and to competitive outcomes that benefit consumers, workers and taxpayers”, Mr Billson added.

More information about ASBFEO Policy and Advocacy and Assistance functions is available on the ASBFEO website.

MEDIA CONTACT: 0448 467 178 | media@asbfeo.gov.au