Ombudsman finds Victorian businesses penalised for making ‘honest mistakes’

A report into the Victorian government’s lockdown support fund finds thousands of firms should have their applications reconsidered.

Victorian Ombudsman Deborah Glass. Picture: AAP

A scathing report into the Victorian government‘s support fund has found thousands of businesses should have their applications reconsidered and struggling owners were penalised for having poor computer and English skills.

Victorian Ombudsman Deborah Glass said her office had received more than 1000 complaints about the fund, which offered eligible businesses $10,0000, while her investigation uncovered the design of the program lacked the checks and balances that would have picked up the program‘s “inevitable flaws”

“A draft of this report resulted in the final acknowledgment that thousands more people should have their applications reconsidered,” said Ms Glass.

“Sometimes, it takes the nudge of the Ombudsman’s elbow to encourage public servants to do the right thing.”

The report found 12,000 businesses should have their applications for support reconsidered, which could cost the Victorian government an additional $120 million.

The report said the stress and business impact of lockdowns triggered widespread anxiety among business owners, which saw some make simple mistakes in their applications.

“The COVID-19 lockdowns fell like a hammer blow on small businesses,” Ms Glass said.

“There was desperation in people’s voices, they were counting on a grant to pay bills, rent, wages – to survive.

As well, the Ombudsman found the application process was difficult for business owners, particularly those not computer literate and spoke English as a second language.

As well, the stress of lockdown saw some make mistakes to which they weren’t alerted.

“Thousands of applications were rejected because, unbeknown to the applicants, they remained in ‘draft’, awaiting further information, when the deadline expired,” said Ms Glass.

“Others were not processed because people made a typo in the form, a keystroke error on a number or email address … Despite the stress and anxiety caused by COVID-19, in an environment where their businesses were being destroyed, people were being penalised for their honest mistakes.”

Ms Glass said a call centre established to handle complaints was quickly overwhelmed before it was expanded.

“It was then expanded – but the outsourced staff were not given access, on privacy grounds, to the database containing the information needed to help business owners struggling to pursue their applications,” said Ms Glass.

“Well intentioned – but not fit for purpose.”

A Victorian government spokesman said the Business Support Fund provided $2.6 billion to 134,000 individual businesses across three rounds.

“The Department of Jobs, Precincts and Regions has accepted all the Ombudsman’s recommendations and is reassessing relevant cases to ensure fairness for all applicants,” he said.
“The Department co-operated with the Ombudsman during her investigation and will ensure its ongoing practices reflect the valuable lessons learned.”

The spokesman said the Department of Jobs, Regions and Precincts was reassessing about 12,000 applications and most would be contacted by April 27.