Small business ombudsman launches natural disaster inquiry

An inquiry into small business natural disaster preparedness and resilience has launched, with the aim of helping the sector cope better with future catastrophes such as fires, floods and droughts.

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) says it aims to report its findings no later than March 18 to Minister for Employment, Workforce, Skills, Small and Family Business Stuart Robert, who referred the inquiry to the Ombudsman.

“Our inquiry will make recommendations about the types of supports that could be targeted to small business and how to achieve the best outcomes from those resources,” Ombudsman Bruce Billson said today in a statement.

“We will also make recommendations around the development of targeted resources that could be used by small business and government agencies to better support small business preparedness and resilience.”

The inquiry follows a recommendation in the 2020 Royal Commission into Natural Disaster Arrangements that “State and territory governments should continue to deliver, evaluate and improve education and engagement programs aimed at promoting disaster resilience for individuals and communities”.

“The cost of natural disasters and the time it takes for small businesses to get back on their feet could be reduced by being better prepared, taking sensible risk and impact mitigation action and bolstering resilience,” Mr Billson said.

“Governments at all levels have a key role to play in ensuring people have the information they need to make informed decisions about how to manage the risks they face from natural disasters and how to be best placed to recover after an unavoidable event.”

A spokesman for ASBFEO told insuranceNEWS.com.au the Ombudsman would be engaging with a wide range of stakeholders, and will welcome any views the Insurance Council of Australia or their members may wish to share.

“Small business access to insurance is a key part of preparation for a natural disaster, and has been extensively canvassed in reviews by the [Australian Competition and Consumer Commission], this office, and other entities.”

The spokesman says the inquiry is primarily focused on ways in which preparedness and planning can be deployed to build small business resilience in the event of a natural disaster.

The Ombudsman will:

• Examine how key preparedness and planning information developed by the public and private sectors has been communicated to and adopted by small business, including the various toolkits, guides and other resources produced since the 2019-20 natural disasters;

• Identify and evaluate education and engagement options to help support small business preparedness for, and resilience to, natural disasters, including secondary effects;

• Make recommendations on how the Federal Government could contribute to improved collaboration and coordination to ensure enhanced preparedness, resilience and recovery of small businesses affected by natural disasters;

• Make recommendations on the types of supports that could be targeted to small business, and other recommendations as to how to achieve the best outcomes from such supports;

• Make recommendations for the development of targeted resources that could be used by small business and government agencies (local, state and federal) to better support small business preparedness and resilience;

• Make recommendations for immediate response actions that small business and government agencies (local, state and federal) could take when presented with a natural disaster to better support small business preparedness and resilience and

• Any other relevant matters

Click here for the inquiry’s full terms of reference.