There is to be an Australian Small Business and Family Enterprise Ombudsman.

The Ombudsman has an advocacy function and an assistance function.

Under the advocacy function, the Ombudsman:

•   undertakes research and inquiries into legislation, policies and practices affecting small businesses and family enterprises;

•   reports and gives advice to the Minister on those matters;

•   contributes to inquiries by others into those matters;

•   contributes to developing national strategies on those matters;

•   reviews proposals relating to those matters and advises the Minister on them;

•   promotes best practice in dealing with small businesses and family enterprises.

Under the assistance function, the Ombudsman responds to requests for assistance by an operator of a small business or family enterprise. The Ombudsman will not duplicate the operations of other agencies. The Ombudsman must transfer a request for assistance to another Commonwealth, State or Territory agency, if that agency could deal with the request and it would be more effective and convenient for that agency to do so. The Ombudsman may also work co - operatively with other agencies of the Commonwealth, the States and the Territories if it is more convenient and effective to do so.

The assistance requested may relate to a dispute with another entity. In that case, the Ombudsman may recommend that an alternative dispute resolution process be undertaken. If an entity does not undertake that process, or withdraws from that process, the Ombudsman may publish that fact. The Ombudsman may keep a list of alternative dispute resolution providers, to assist small businesses and family enterprises in accessing alternative dispute resolution.

To assist the Ombudsman in carrying out the Ombudsman's functions, the Ombudsman has information - gathering powers. Where the Minister directs the Ombudsman to inquire into a matter, this includes the power to conduct, and take evidence in, hearings.