Home topics news News News SMEs are paying more than $130k to resolve disputes Gali Blacher December 6, 2018 According to new research small businesses in Australia are paying more than $130,000 to resolve a dispute through formal pathways. This is double the cost of a decade ago. Releasing the results of the Access to Justi ce I nquiry (Phase I) research, the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell said payment times and terms remain the biggest cause of disputes. “We surveyed 1,600 small businesses across Australia and found time and cost are the most significant factors when determining how far to pursue resolution of a dispute,” Carnell said. “Our research shows 22% of small businesses surveyed had been involved in a serious dispute in the last five years. Nine out of 10 were business-to-business disputes and one in 20 were business-to-government. “Three out of five sought legal advice from a lawyer. At this point, the small business owner has to decide whether to pursue the dispute, as the expected costs of further action most often outweigh the potential gain. Half of those surveyed considered the amount of time and effort required was unreasonable. Key takeouts: Over one in ten (11%) of small businesses in Australia decided against escalating a dispute through a formal mechanism because they were unable to afford the costs involved. The most common cause of disputes (44%) related to payment issues. In the Mining sector, over 70% of disputes related to refusal to