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Mediation on the rise for small firms

The Victorian Small Business Commission’s Annual Report was recently tabled in Parliament, revealing a number of lasting and ongoing impacts from COVID-19.

user iconLauren Croft 05 January 2023 SME Law
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Data from the Victorian Small Business Commission’s (VSBC) Annual Report 2022 shows high demand for help to resolve commercial disputes due to the ongoing impacts of COVID-19.

However, Victorians are reportedly walking away more satisfied with the VSBC’s mediation service for resolving these disputes, with the overall satisfaction rate increasing to 88 per cent.

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According to the report, a record 19,775 Victorians made enquiries to the VSBC and 3,171 applied for help to resolve a dispute, which is a 68 per cent increase on the number who applied before the pandemic.

Around 43 per cent of all matters were resolved early on, and of the matters that did go on to mediation, 70 per cent were successfully resolved without the need for costly and stressful legal action.

Small business owners contended with a broad range of disputes, including over who should pay for repairs under a retail lease, landlords refusing to provide rent relief to their tenants, unpaid supplier invoices and goods and services that were below par.

Commissioner Lynda McAlary-Smith said the VSBC focused on responding to small business pressures — from deferred debts that were becoming payable and acute labour and skills shortages to international supply chain disruption and inflationary pressures.

“Our core priorities have been increasing awareness of the VSBC’s impartial dispute resolution services, continually improving on those services, and helping to make sure small business people have the information and help they need to make informed decisions,” she said.  

“In the work that we do, we have heard incredible stories of resilience, strength and entrepreneurship among Victoria’s small business people. In 2022–23, we will continue to support them in working through recovery towards renewal and do all that we can to help achieve a fair and competitive trading environment.”

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