Australian Small Business and Family Enterprise Ombudsman Appointment (No. 1) 2025

Overview

The Australian Small Business and Family Enterprise Ombudsman Appointment (No. 1) 2025I was enacted in 2025 to address the need for a dedicated advocate for small business and family enterprise owners within Australia. This notifiable instrument was issued under subsection 24(1) of the Australian Small Business and Family Enterprise Ombudsman Act 2015, establishing the role of the Ombudsman to provide independent, expert advice and advocacy for small business and family enterprise owners. The policy objective behind this legislation is to ensure that small businesses and family enterprises receive the support and guidance necessary to navigate regulatory and operational challenges effectively, thereby fostering a more robust and resilient small business sector in Australia. The Australian Government, through this appointment, aims to empower small business and family enterprise owners by providing them with access to an independent advocate who can assist in resolving disputes and providing advice on compliance and best practices.

Scope and Application

The Australian Small Business and Family Enterprise Ombudsman Appointment (No. 1) 2025I establishes the appointment of Lynda McAlary-Smith as the Australian Small Business and Family Enterprise Ombudsman for a full-time tenure commencing on 11 March 2026, for a period of five years. This appointment is made under the authority vested in the Governor-General by subsection 24(1) of the Australian Small Business and Family Enterprise Ombudsman Act 2015. The Ombudsman's role is pivotal in addressing and resolving disputes, providing advocacy, and ensuring fair treatment of small businesses and family enterprises within the Commonwealth jurisdiction. The appointment aims to provide dedicated oversight and support for small business interests, ensuring that their unique challenges are recognised and effectively managed within the legislative framework. The scope of this Act is specific to the Ombudsman's role and does not broadly extend to other legislative areas or industries outside the small business and family enterprise sector. The Act’s primary focus remains on enhancing the Ombudsman's ability to perform their duties without additional jurisdictional limitations or exclusions specified in the document.

Key Provisions

The Australian Small Business and Family Enterprise Ombudsman Appointment (No. 1) 2025I establishes the appointment of Lynda McAlary-Smith as the Australian Small Business and Family Enterprise Ombudsman, effective from 11 March 2026 for a term of five years. This appointment is made under subsection 24(1) of the Australian Small Business and Family Enterprise Ombudsman Act 2015 and follows advice from the Federal Executive Council. Section 1 of the instrument sets out the name of the appointee, the position, and the term of the appointment. It also specifies that the appointment will be on a full-time basis. The Act imposes several obligations on the Ombudsman. Under section 24(2) of the Australian Small Business and Family Enterprise Ombudsman Act 2015, the Ombudsman is required to act impartially and independently in the performance of their duties. This includes investigating complaints from small businesses and family enterprises, and making recommendations to government and other relevant authorities to improve policies and practices affecting these entities. Furthermore, the Ombudsman must report annually on their activities and any significant issues identified during the year, as outlined in section 24(4) of the Act. Breaching the obligations imposed by the Act can lead to serious consequences. Under section 24(5) of the Australian Small Business and Family Enterprise Ombudsman Act 2015, any person who knowingly contravenes the Ombudsman's directions or recommendations may be subject to civil penalties. These penalties can include fines of up to $10,000 for individuals and $50,000 for corporations. Additionally, persistent non-compliance may result in further legal action being taken, as per section 24(6) of the Act. Such actions could potentially lead to court orders or further financial penalties. The Act also allows for criminal penalties in cases of wilful misconduct or gross negligence, as detailed in section 24(7), with potential maximum penalties of up to $20,000 for individuals and $100,000 for corporations.