‘More help on the way’ for Aussie SMES, govt says

From 1 July, the government would deliver $8 million in additional funding to extend the NewAccess for Small Business Owners (NASBO) and the small business debt helpline for another 12 months.

Since its launch in 2021, NASBO has aimed to provide small business owners nationwide with free, confidential mental health assistance through trained coaches, having engaged with over 8,000 so far.

Aly said these measures complemented other initiatives the government was delivering to try and ease the pressure on small business.

“Australia’s small businesses are at the heart of our economy and our communities. They create jobs, support families, and help shape our regions and cities. Since we came to government, Australians have established 26,000 new businesses every month, a clear sign of ambition, resilience, and belief in the future,” she said.

“Employing 5.2 million people, Australia’s small businesses contribute almost $600 billion to our nation’s economy every year. This additional funding ensures small business owners can access free mental health and financial counselling support when pressures mount.”

“No one running a small business should feel like they have to carry it alone.”

This move from the government comes after multiple calls for help from the industry, as well as new data from the Payment Times Reporting Regulator highlighting there needed to be improvements to payment times, despite some progress having been made.

Under the Payment Times Reporting scheme, large businesses with annual consolidated revenue above $100 million were required to publicly report how quickly they paid their small business suppliers.

The recent January update revealed Commonwealth entities were paying small business invoices in an average of 16.4 days, which was “significantly faster” than the national average of 27.4 days.

According to Aly, in a move to strengthen accountability the regulator had contacted more than 1,300 large entities suspected of failing to meet their reporting obligations, resulting in hundreds of missing reports being lodged and warning letters/infringement notices issued.

“Cash flow matters. Getting paid on time can be the difference between surviving and thriving. Large businesses with annual consolidated revenue above $100 million have a responsibility to pay their small business suppliers fairly and promptly.”

The regulator would also look to implement new powers which could see the slowest 20 per cent of small business payers receive formal directions to disclose details of their poor payment practices on their website and other company documents.

A new payment times reporting portal would launch this month to streamline reporting requirements and reduce red tape for businesses doing the right thing, Aly said.