Australia is at risk of sliding towards a 'big corporate' economy and needs to take urgent action to reverse the direction. The report asks policymakers and regulators come together to put small and family businesses first and create the best environment in which they can thrive and succeed. 

In 2024, small businesses generate 33% of Australia's GDP and provide jobs for 42% of the private workforce. Although small businesses make up 98% of businesses in Australia, their contribution is waning: as recently as 2006, small business contributed 40% of GDP and employed 53% of those with a private sector job. 

The Ombudsman proposes that policymakers and regulators need to renew their commitment to providing the best environment for small and family businesses to succeed, as sluggish economic growth combined with cost of doing business, poor productivity, tight labour markets, high inflation and interest rate rises all take their toll. In particular, the report states that the cumulative compliance burden is having a chilling effect on entrepreneurship and must be addressed. 

14 steps to energise enterprise

• Explore the potential benefits of a tax discount/offset scheme for new small business owners to allow them to keep more of their income to re-invest in their business during the critical first three years.
• Focus on right-sized regulation, including how regulators and government formulate and administer laws, to help small business owners meet their obligations.
• Require every Cabinet submission and new policy proposal to include a small business impact statement.
• Establish the Prime Minister’s Small Business Awards.
• Create a Federal Small Business and Codes List in the Federal Circuit and Family Court of Australia.
• Give small business a greater chance to compete for government contracts.
• Make it mandatory for banks and other providers to charge the lowest fee for tap-and-go, dual-network debit card transactions.
• Ensure that essential insurances for small businesses are understandable, accessible and affordable.
• Ban unfair trading/business practices that distort competition and harm small business.
• Create a dedicated Small Business Commissioner and Division within the Fair Work Commission.
• Require digital platform providers to implement clear, appropriate and standardised procedures for timely small business dispute resolution.
• Honour businesses, big and small, who fulfil their workplace obligations to employees, meet tax reporting and payment obligations in a timely way and pay small business suppliers in under 21 days, with a ‘Good Business Pays’ recognition and accreditation.
• Expand digital learning and practical support via enterprise-specific capacity building and technology deployment.
• Develop a readily accessible and easily navigable central resource hub of actionable guidance, programs and assistance specifically prepared for small and family business use.