If you do a job, you expect to be paid, right?

Yet, in recently released figures from the Australian Small Business and Family Enterprise Ombudsman (ASBEO), they revealed a milestone of helping 40000 small businesses with a dispute and in two out of five cases this was an issue with being paid.

Ombudsman Bruce Billson said this was a significant moment for the agency.

“Our mission is to make Australia the best place to start, grow and transform a small business and while we can’t guarantee every business will succeed, we strive to make sure no one fails because they didn’t get help when they wanted it,” Mr Billson said.

Besides chasing payments, the Ombudsman has noticed a sharp rise in small businesses seeking help in digital disputes and with digital platform providers and in cases relating to the construction industry.

Construction industry woes

Since mid-2021, 2023 Australian building companies have gone into liquidation, according to data from the Australian Security and Investments Commission.

Mr Billson said there had also been a doubling over two years in the proportion of cases relating to the construction industry which now accounts for just over one in 10 of the calls for assistance.

“This coincides with the rising number of insolvencies in the construction sector,” he said.

“In one example, a family enterprise that subcontracts in the construction industry contacted us because they had not been paid and this was affecting their ability to pay their own subcontractors. As a result of these difficulties, a family member working in the business also suffered mental health problems. They were grateful for our guidance to resolve their issues.”

But, Mr Billson said the main type of dispute continues to be about payments which accounts for 38 per cent, up from 30 per cent two years ago.

Digital service dramas

Studying ASBFEO data reveals 26 per cent of cases brought to them relate to digital services.

“The number of cases involving digital services and platform providers is double the proportion we received just two years ago,” Mr Billson said. “I have been vocal in our concern about the rising number of problems small and family businesses are encountering with digital platform providers, particularly the nightmare in restoring an account that has been shut down after being hacked.

“Some people have built their entire businesses on social media and digital platforms and having someone else access and control their account is devastating for their business and their reputation. They watch the financial and emotional damage occur in real time with no ability to stop it.

“One of the absurdities of the current situation is after being locked out of your account, you need to access your account to make a complaint."

Mr Bilson described this as "the ultimate run around."

"It is crucial that clear, appropriate, and standardised procedures be put in place to enable a timely resolution for small business disputes with digital platforms. We have been active in directly seeking resolutions for small and family businesses.

"When we contact the digital platforms, most have engaged constructively and have provided us with a direct contact to enable these disputes to be escalated and regularly leads to satisfactory outcomes. However, they are not always consistent and the need for a government body to step in to resolve every small business dispute is not the answer,” he said.

Small and family businesses with a dispute can find more information on the ASBFEO website - www.asbfeo.gov.au