Small and family businesses in Australia just got a boost that could make all the difference in navigating tricky disputes.
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has rolled out an expansion of its subsidized legal advice service, broadening the scope of support to cover more than just tax disputes with the Australian Taxation Office (ATO). Announced in early 2025, this move taps into an existing $663,000 annual funding pool to help eligible businesses tackle a wider range of commercial challenges—think franchising squabbles, industry code violations, or payment standoffs with bigger players. Here’s what it means and how it could help your business thrive.
What’s new?
Previously, the ASBFEO’s low-cost legal advice was a lifeline mainly for businesses tangled in ATO tax determination disputes. It worked wonders—empowering under-resourced owners to stand their ground against a formidable opponent. Now, the government has greenlit an expansion, allowing the same funding to stretch further. Eligible small businesses can access expert guidance on broader commercial matters, especially where industry codes—like those governing franchising, retail, or supply chains—are in play. The goal? To level the playing field when David faces Goliath.
Bruce Billson, the Ombudsman, calls it a “pleasing step forward.” “There’s nothing worse than a small business heading into mediation blind, unsure of their legal footing, while the other side’s got deep pockets and slick lawyers,” he said. With this change, more businesses can get clarity on their rights and options without breaking the bank.
Why it matters
Running a small business is tough enough without legal headaches. Cashflow’s tight—60% of small businesses have little to no reserves, according to recent surveys—and disputes can drain time, money, and morale. Whether it’s a franchisee battling unfair terms or a supplier stiffed by a big client, these conflicts often pit small operators against entities with far more resources. The expanded service aims to fix that imbalance by offering affordable, expert advice that helps owners prepare for alternative dispute resolution (ADR) like mediation, avoiding the courtroom entirely.
Take franchising, for instance. Disputes here are notorious for power imbalances—think hefty contract penalties or withheld payments. ASBFEO already mediates under several industry codes, and this legal support will prioritize such cases. “We’ve seen how effective this can be with tax disputes,” Billson noted. “Now, we’re bringing that same empowerment to more small businesses across a wider range of issues.”
This isn’t just about settling scores—it’s about keeping businesses alive. Since its launch in 2016, ASBFEO has helped over 50,000 small and family enterprises through education, resources, and direct assistance. The timing couldn’t be better: with economic “headwinds” like rising costs and sluggish demand battering small operators in 2025, every bit of support counts. Billson’s mission is clear: “No business should fail because the owners didn’t know about help that was out there.”
The service also fits a broader trend of pushing for fairness in business dealings. By focusing on ADR, ASBFEO wants to resolve disputes quickly and constructively, preserving relationships so both parties can get back to work. “We’re not here to guarantee a win,” Billson cautions, “but to give you the tools to fight smart.”
How to get involved
So, how do you tap into this? It’s straightforward if you’re eligible—typically, small businesses (under 100 employees) or family enterprises actively seeking a resolution qualify. Here’s your action plan:
- Step 1: Check Your Case
Is your dispute commercial—say, a tax issue, franchising conflict, or payment delay? If it’s covered by an industry code or involves a power imbalance, you’re likely in the sweet spot. - Step 2: Lodge a Request
Head to www.asbfeo.gov.au and submit a request for assistance online. Be specific—mention your dispute type (e.g., “franchising disagreement” or “ATO challenge”). You can also call 1300 650 460 if tech’s not your thing. - Step 3: Work with ASBFEO
Once lodged, ASBFEO case managers will assess your situation and connect you with subsidized legal advice if it fits the bill. They’ll guide you through the process, ensuring you’re prepped for mediation or negotiation.
This isn’t a free-for-all—eligibility hinges on a “resolution mindset.” That means you’re committed to finding a solution, not just picking a fight. The legal advisers, funded through that $663,000 pool, will focus on practical outcomes, not courtroom victories.
What’s the catch?
There’s no new cash here—the $663,000 is existing funding stretched to cover more ground. That might limit how many businesses get help, so acting fast matters. And while the advice is low-cost, it’s not free; expect a small contribution depending on your case. Still, it’s a fraction of what you’d pay a private lawyer—think hundreds, not thousands.
For small business owners, this expansion is a rare win. It’s a chance to face disputes with confidence, not dread, backed by an organization that’s already proven its worth to tens of thousands. Whether you’re haggling with the tax office or a franchisor, ASBFEO’s got your back. “We’re here to help you start, grow, or transform,” Billson says, “and this is one more way we’re doing it.”
Ready to take control? Visit ASBFEO website
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