Legalise Cannabis MP Rachel Payne is imploring the Allan Government to reinstate a service supporting businesses in financial stress, given Victoria recorded the greatest increase in business insolvencies in Australia in late 2024.
Ms Payne said the specialist support program Partners in Wellbeing was not funded in this year’s state budget. Despite supporting more than 5,000 business owners in the past five years, it shut up shop on June 30.
“It makes no sense that the government is scrapping a service that helps Victorian small business owners with debt and stress, when business insolvency is surging,” Ms Payne said.
“In the six months to December, there was a 71 per cent increase in business bankruptcies in Victoria with 2181 logging an insolvency appointment compared to 1275 for the same period a year ago.”
Ms Payne said the Partners in Wellbeing program was set up in 2020 to support the Victorian business community through the pandemic, and had helped save many of the 5,000 business owners who used the service after finding themselves in trouble.
“Last year, the government wound back the service so the Partners in Wellbeing program was no longer available to all Victorian businesses, only businesses impacted by natural disasters in a limited number of postcodes and counsellor numbers at Partners in Wellbeing were slashed from nine to four,” she said.
“The result? Business insolvencies in Victoria surged. There is still a Small Business Debt Helpline but when the Partners in Wellbeing program was wound back calls to the helpline rose by 81 per cent.
“Since 2020 Partners in Wellbeing provided a wrap-around support to small business owners, helping with everything from managing debt and finances to drawing up a business plan as well as providing emotional support to businesspeople, some of who had mortgaged their home to set up a small business.
“To prevent more Victorian businesses going to the wall, the government must fund an ongoing dedicated small business financial counselling service, combined with a small business community legal centre, plus mental health wellbeing supports.”
Financial Counselling Victoria is disappointed about the end of the service.
Financial Counselling Victoria CEO Zyl Hovenga-Wauchope said there is a clear need for a new service to support small business owners.
“600,000 small businesses in Victoria are now left without access to dedicated financial counselling, due to cessation of funding for the only statewide dedicated small business financial counselling service,” he said.
“We know that small businesses contribute 30 per cent of the state’s output in goods and services, so the wider economic implications of this loss of funding are stark.
“There is a clear economic and social imperative to fully fund a dedicated small business financial counselling service with an integrated practice model to address legal and financial issues holistically. Financial counsellors can help to mitigate the risk of business failures, reduce the burden on the legal system, and support the sustainability of local economies – the social return on investment stacks up.”
Wednesday the 2nd of July 2025
Related:
> Support for small business – Rachel Payne
> Greater Dandenong Anti-Poverty Consortium – Rachel Payne
> Grant Opportunities – Rachel Payne
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> Grants & programs | Business Victoria
> Home – Financial Counselling Victoria
