Extra scope for low-cost legal support for business

Small business owner receiving advice. | Newsreel
The Australian Small Business and Family Enterprise Ombudsman’s dispute resolution service has been expanded. | Photo: Tomazi (iStock)

Small businesses can now access low-cost legal support for an expanded range of disputes.

Federal Small Business Minister Julie Collins said $2.6 million had been invested in expanding the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) dispute resolution service, with ongoing funding secured to ensure the service continues into the future.

Minister Collins said eligible small businesses in dispute with another business or government agency could now access cheap legal advice to help clarify issues and consider alternative dispute resolution options.

“The dispute resolution service will save small businesses stress, time and money, so they can get back to business faster,” she said.

Minister Collins said the expanded service built on the assistance the ASBFEO already provided to help small businesses navigate disputes, understand alternative dispute resolution options, and find mental and financial services if needed.

“It will allow more unrepresented small businesses, including franchisees, to access low cost legal advice and assistance, helping them navigate business disputes more effectively.”

She said to be eligible for the service, small businesses must:

  • Be a small business of fewer than 100 employees or revenue of less than $5 million in the previous financial year.
  • Not already be legally represented.
  • Be seeking dispute resolution in relation to a relevant action under section 65 of the Australian Small Business and Family Enterprise Ombudsman Act 2015 or relevant industry code of practice.
  • Have its matter being actively managed by an ASBFEO case manager, with the ASBFEO of the view that the matter may benefit from an alternative dispute resolution process.

ASBFEO Bruce Billson said the expanded service utilised existing funding, but extending the kind of cases eligible for support beyond the current ATO tax determination disputes to broader commercial matters, particularly where industry codes may be involved.

‘It is pleasing that the Government has expanded ASBFEO’s ability to offer eligible small businesses low-cost legal advice to help clarify issues and consider alternative dispute resolution options,” Mr Billson said.

‘There is nothing worse than a small business fronting up to something like a mediation with little idea of what is the legal ground on where they stand, what possible solutions might look like and facing a much better resourced party on the other side of the table,” he said.

Learn more on the ASBFEO website.