The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has released its 2026–27 Pre‑Budget Submission, calling on the Federal Government to deliver practical and meaningful reforms that will better support Australia’s small and family businesses. At GM Advisory, we welcome these discussions — because the challenges highlighted by ASBFEO are the same pain points we hear from clients every day.
Small businesses form the foundation of Australia’s economic strength, innovation and community wellbeing. Yet, as Ombudsman Bruce Billson notes, “running a small business has become harder than it needs to be.” Rising costs, growing regulatory complexity, and unfair market practices continue to place enormous pressure on owners who are simply trying to operate, employ and grow.
Below, we break down the key themes of ASBFEO’s submission and what they may mean for Australian small business owners.
1. Reducing Costs and Strengthening Cash Flow
ASBFEO is urging the Government to introduce targeted tax incentives, particularly for businesses in their early years — when cash flow challenges are the most acute. Proposals include:
- Early‑stage tax discounts or offsets
These would allow small businesses to retain more of their initial revenue, helping them reinvest during the critical start‑up phase and avoid the notorious “valley of death.” - Improved access to financing
Earlier, stronger cash positions can help reduce reliance on high‑cost credit and support sustainable early‑stage growth.
Cash flow remains one of the most common stressors for small business owners. Measures like these could significantly reduce early‑stage financial strain and improve long‑term survivability.
2. A Regulatory Framework Built With Small Business in Mind
A major component of ASBFEO’s submission is the call for regulation that better reflects the realities of smaller enterprises.
Key recommendations include:
- A Small Business Impact Statement for all policy proposals
This would ensure new regulations are assessed through a practical small‑business lens before being implemented. - Simplified requirements and clearer compliance pathways
Too often, regulatory frameworks assume the resources of large organisations — leaving small businesses to absorb disproportionate complexity and cost. - Fairer digital payment systems
ASBFEO suggests transparent merchant fee structures and allows small businesses to recover reasonable electronic payment processing costs where least‑cost routing is unavailable.
Regulation shouldn’t unintentionally stifle innovation. Embedding a “small business first” approach could make compliance more manageable and more cost‑effective.
3. Improving Access to Essential Business Enablers
Many small businesses continue to struggle with the rising cost of essential services — particularly insurance. The Ombudsman highlighted the need for Government action to ensure:
- Fair access to affordable insurance, especially in high‑risk industries or regions where coverage is increasingly limited.
- Better support from all levels of government, to strengthen resilience and business continuity.
For many small businesses, insurance is no longer merely expensive — it’s becoming prohibitively difficult to secure. Addressing this issue is critical to long‑term business sustainability.
A “Fair Go” for Small Business
What small businesses want isn’t special treatment — it’s a fair go.
With the right policy settings, small businesses will continue to invest, hire, innovate and contribute to thriving communities. As the Ombudsman puts it: this is not only good for business owners; it’s good for Australia’s long‑term prosperity.
