There are signs in the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Small Business Pulse that 2026 can be a year of renewal, reinvigoration and reinvestment for the sector. The February Pulse increased by 0.1 per cent in the three months to February 2026, marking the fourth consecutive quarterly increase.

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This modest rise reflects self-initiated ambitions and efforts of enterprising women and men to make their luck through intentions and initiatives to strengthen, build and transform their businesses. Small business owners are exploring new products, new customer segments, and additional income streams.

Just getting paid by a business customer is still the most common reason ASBFEO is contacted for assistance. Increasingly, small businesses seeking help to get paid worry that the business that is not paying them in a timely manner may be insolvent.

Taking steps to protect your own business from the risks of non-payment is sensible. Payment terms that see a significant deposit being paid, having the client supply key inputs and materials, and registering your interest in machinery or consigned stock that might be away from your premises through the Personal Property Security Register, are just some of the ways you can protect yourself.

Checking credit bureaus for a prospective customer's payment 'form' (including substantial ATO debts) can help you make informed decisions about proceeding and payment terms.

CreditorWatch's recent Business Risk Index highlighted delays in payment times as a key early warning sign a small business may be heading toward insolvency. Payment disputes have increased during my tenure as Ombudsman. Among the small and family businesses that later ceased operating, payment disputes feature in nearly half of cases.

For businesses struggling to pay what they owe, it is very important to reach out early and ask for time to pay or a payment plan, seek professional advice and if the challenges are severe, consider reaching out to the Small Business Debt Helpline for guidance. Be very wary of 'low doc' emergency short-term funding from non-AFCA lenders as these loans can be punishing.

Knowing your numbers and reviewing them routinely with your trusted adviser can help with the early identification when your business is heading toward a rocky shore and provide time to course correct. This might involve a recovery plan while you still have resources and time to implement it or even involve an orderly exit and dignified dismount while you still have choices.

New mandatory requirements from July 1

If the current challenging business environment is not enough, 2026 also looks set to be the 'year of living compliantly'.

Anti-money laundering and counter-terrorism financing (AML/CTF) mandatory compliance requirements for the financial, gambling, and bullion sectors, will now extend to many unsuspecting small businesses. From July 1, 2026, small (and not-so-small) firms which provide accounting, legal and some business structuring and advisory services, along with real estate firms, and dealers in precious stones, metals and products, will also have AML/CTF regulatory obligations.

But don't wait until July 1 to check out the AUSTRAC website to see if you are captured and what is involved. Respondent businesses need to 'enrol' shortly after the end of March and gear up with AML/CTF programs that embraces risk assessments, key policies and a nominated responsible person to make sure obligations are met, from the July 1 start date.

The AUSTRAC website has helpful resources to help small businesses know if they are affected so they can be informed and prepare. Industry associations and professional bodies can provide standard templates, risk assessments and guidance.

Also from July 1, new obligations for payday super come into effect. Business owners may want to plan ahead by using payroll software that automates super, aligning payroll and super on the same day to reduce risk of missed deadlines, build in internal buffers for bank and fund clearing times, and plan cash flow early. Super contributions can no longer be held for quarterly payment and helping cash flow until due. For all employers, super will be a regular payroll duty and it is a workplace obligation to make sure systems and payroll software is good to go.

You can see why ASBFEO continues to push for right-sized regulations for small businesses - for it to be proportionate, genuinely risk-based, readily implementable for even the smallest respondent and supported by practical guidance to enable compliance. It is part of the 'small business first' approach that is needed to provide the best prospects for success and why it has been a constant theme during my term as Australian Small Business and Family Enterprise Ombudsman, which comes to an end in the coming days.

In my five years as ombudsman, ASBFEO responded to over 32,000 new requests for help with small and family business' disputes and related challenges. During this time, nearly 8000 requests for help were resolved by ASBFEO case managers. Of these, 72 per cent provided active case management support, including information to help resolve the dispute, 23 per cent were referred to a more appropriate agency and 5 per cent were referred to alternative dispute resolution practitioner.

We also developed comprehensive franchising guidance and education resources, supporting ASBFEO's role as the designated mediation facilitator. More helpful resources are also available on the ASBFEO website.

ASBFEO has provided guidance to government on:

Improving small business disaster preparedness and resilience

Enabling small businesses to access affordable risk protection

How government procurement can better support small firm participation

How ESG can be right-sized and beneficial for business durability

How ASBFEO can deliver better for more small and family businesses, government and regulators.

We are well into a deep dive into business-to-business imposed 'white tape'.

Our advocacy has urged practical support and meaningful incentives to support small businesses deepening their digital engagement to be able to fully benefit from technological advancement, including AI.

We've strengthened the evidence base and visibility of small business conditions with the ASBFEO Small Business Pulse. The ASBFEO Pulse is being increasingly referenced for providing trends and insights into trading conditions, digital and AI take up, workforce challenges and other factors influencing small businesses.

I'm particularly proud of our '14 steps to energise enterprise', which lays out practical, positive and doable steps that can create a more supportive environment for small business to form, compete and thrive. It continues to be a compelling and constructive blueprint on how to 'energise enterprise' and is an example of forward-looking policy innovation that has seen ASBFEO earn deserved recognition.

In 2025, ASBFEO was awarded the Ombudsmen and Commissions ADR Group of the Year, ISO certification and the International Council for Small Business 2025-26 'Lighthouse Award', confirming that there is an excellent foundation and positive momentum from which the new ombudsman can build to the advantage of Australia's small and family businesses.

I am pleased to welcome Lynda McAlarySmith as my successor. Lynda's leadership as the Victorian Small Business Commissioner ensures strong dispute resolution know-how, advocacy skills and experience using data to generate meaningful insights.

Small and family businesses remain the beating heart of our communities and the engine room of the economy. As I move on from ASBFEO, I continue to be inspired by the perpetual optimism and relentless endeavour of enterprising business people who delight customers, create opportunities and strengthen local economies with your community spirit and leadership.

To all the enterprising women and men behind our small and family businesses giving it a go - it has been an honour and privilege to be your tireless ally, advocate and champion.

Bruce Billson is the outgoing Australian Small Business and Family Enterprise Ombudsman.

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