SME disputes remain elevated: ASBFEO

In the first quarter of 2026, the ASBFEO received 2,269 total requests for assistance, 1,721 calls to its contact centre, and actively managed 548 new cases. The ombudsman dealt with 81.5 per cent of cases received, referring the remainder to a more appropriate agency, such as the Small Business Commissioner, or an alternative dispute resolution practitioner.

“Demand for our assistance has remained elevated over recent quarters, although it declined in Q1, 2026, compared to Q4, 2025,” the ombudsman said.

In its findings, the ombudsman found that small businesses faced increasing issues with insurance accessibility and affordability. 

Several small businesses faced barriers, including owners who spoke a language other than English at home (58 per cent), who were twice as likely to reach out about a payment dispute than those who spoke only English at home (29 per cent).

“These payment disputes were most common in the transport, postal and warehousing, accommodation and food services, and construction industries,” the ASBFEO said.

Further, the report found a 5-percentage-point jump in the share of regional small businesses facing disputes with a dedicated case manager (18 per cent to 23 per cent quarter-to-quarter).

“New disputes in Q1, 2026 most commonly involved the construction sector in regional areas, contrasting with capital cities where case managed disputes more frequently involved the transport, postal and warehousing industry,” the ASBFEO said.

The ombudsman stressed that small businesses must engage with dispute support as soon as possible. “Early engagement is increasingly central to preserving options for small businesses, particularly in dispute contexts involving higher complexity or more constrained resolution environments.”

“Once insolvency has occurred, the capacity for dispute resolution or business stabilisation can be constrained, even where a business legitimately continues to operate … Later engagement may reflect ongoing cashflow stress, uncertainty, or challenges in navigating when and where to seek assistance.”