Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell is recommending that all small businesses sit down with their financial advisor amid COVID-19 developments across the Eastern Seaboard.
Victoria has entered a State of Disaster, New South Wales Premier Gladys Berejiklian has strongly urged people in the State to wear a mask while shopping and on public transport, while Queensland has closed its borders to Greater Sydney.
Carnell said that the ASBFEO office is recommending a specialised program for small businesses facing hardship.
"What all small businesses should be doing, if they haven’t already, is sitting down with their trusted, accredited financial adviser and working on a tailored plan and making informed decisions about the future of their business.
"That’s why my office has recommended establishing a Small Business Viability Review program as part of our recently released Insolvency Practices Inquiry final report.
"The proposed program would allow small business owners experiencing significant financial stress to obtain a voucher worth up to $5,000 to access the professional financial advice they need.
"This would give the small business owner the information they need to restructure or exit with dignity. It’s these very principles our Insolvency Practices Inquiry was based on.
"The inquiry found the system does not work for small businesses and needs to change dramatically to give owners more control over the process, without being pushed into outcomes they don’t want – like losing their family home," she said.
Carnell added that small business owners should also seek mental health support during this time.
"To have been through the first round of restrictions, only to have to close or significantly reduce your operations again a couple of months later – is simply heartbreaking.
"In reflecting on the year so far, it’s clear that there has never been a tougher time to be in business.
"I urge all small business owners to take time to consider their mental health and seek help if you need it," she said.