Small business support measures
Small business support measures
The Government has announced multiple measures aimed at supporting Australian small businesses. The announcements are focussed on improving cashflow and providing increased access to dispute remediation and support.
Payment Times Reporting Scheme
Under these measures, the Government has announced an additional $25.3 million in funding over four years from 2024-25 to implement reforms recommended by the statutory review including increased resourcing and upgrading ICT infrastructure for the Payment Times Reporting Regulator. This reporting is targeted at levelling the playing field to ensure large businesses embed fair payment terms for small businesses.
Small Business Debt Helpline
The Government has committed $10.8 million over two years from 2024-25 to extend the Small Business Debt Helpline and the NewAccess for Small Business Owners program. This funding will provide small businesses with further support including confidential financial counselling and mental health support.
Franchising
A further $3 million is provided for implementing reforms identified in the Review of the Franchising Code of Conduct, including investigating the feasibility of a licensing model in addition to remaking and updating the Franchising Code of Conduct prior to its expiration in April 2025.
Small Business Ombudsman
Finally, the Government has provided $2.6 million for the Australian Small Business and Family Enterprise Ombudsman to support unrepresented small businesses in navigating business-to-business disputes through alternative dispute resolution.
BDO comment
Small business owners are the backbone of Australia’s economy and BDO welcomes support for these taxpayers. While these measures do not provide significant reform, BDO recognises they will help equip small business owners with the tools to become more resilient and improve the options available to help recover outstanding debts and improve cashflows.