The Australian government has announced an expansion of its dispute resolution service for small businesses, offering access to low-cost legal advice to help resolve disputes without the burden of expensive court proceedings.
Minister for Small Business Julie Collins revealed the initiative, which is part of a broader $2.6 million investment to strengthen the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) dispute resolution services. The funding aims to improve support for small businesses involved in disputes with other businesses or government agencies.
Minister Collins explained that this expanded service would make legal advice and assistance more accessible, reducing the financial strain of resolving conflicts. “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.
The expanded program aims to level the playing field for small businesses by providing access to alternative dispute resolution (ADR) options. According to the government, this service builds on the existing support provided by ASBFEO, which helps small businesses navigate disputes, understand available resolution options, and access mental and financial services when needed.
To be eligible for this service, small businesses must have fewer than 100 employees, or revenue of less than $5 million in the previous financial year. Businesses must also be unrepresented in the dispute and seek resolution under specific sections of the Australian Small Business and Family Enterprise Ombudsman Act 2015 or an industry code of practice. Additionally, the ASBFEO must believe that the matter could benefit from ADR.
The initiative is particularly beneficial for unrepresented small businesses, including franchisees, who often face challenges navigating disputes without professional legal representation. By offering affordable legal assistance, the government aims to help these businesses resolve conflicts more effectively, saving them time, money, and stress.
Minister Collins also emphasized that this initiative is part of the Albanese government’s broader efforts to support Australia’s 2.6 million small businesses, offering over $640 million in targeted support to help them thrive amid ongoing challenges. “This 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,” she said.
Through this expanded service, the government aims to provide more equitable access to justice, helping small businesses avoid the potentially crippling costs of protracted legal battles.
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