Public debate and policy decisions should not ignore sole traders, the nation’s small business ombudsman says, pointing to the surging growth and increasing diversity of entrepreneurs choosing to strike out on their own.
Despite sole traders making up the majority of Australia’s small businesses, Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Bruce Billson fears policies designed with employing businesses in mind could miss the needs of individual traders.
“When such a large and dynamic part of our economy is overlooked, policy simply can’t keep pace with real working lives,” Billson said, in a statement shared on Thursday.
New ASBFEO analysis of Australian Bureau of Statistics data shows the nation counted almost 1.7 million sole traders in 2021-22, an increase of nearly 300,000 since 2017-18.
Many of those sole traders nowrun a business alongside other work obligations, instead of devoting all their time to solo entrepreneurship.
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This means solo businesses are something Australians “step into, step out of, or combine with other roles as circumstances and opportunities evolve,” the report found.
As a result, policies that paint solo businesses either as ‘traditional’ independent contractors or hobbyist side-hustlers could miss the nuance of today’s business environment.
Payment concerns still prominent
Many sole traders face hardship when chasing payment for work completed, the ASBFEO said, suggesting policies designed to help small businesses earn what they are owed could better represent solo businesses.
The transport, postal and warehousing sector — which is facing the greatest increase in sole traders out of any industry group — is a prime example.
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Nearly half (49%) of disputes brought to the ASBFEO by small businesses in that sector over 2025 related to payment disputes.
“By contrast, across all other industries, payment disputes declined to 34% in 2025 from 39% the previous year—underscoring just how acute the problem is for transport, postal, and warehousing small businesses,” the ASBFEO said.
Operations like the Payment Times Reporting Scheme exist to call out big businesses that lag on payments to small business partners, and since 2024, gig economy workers — including many sole traders in the transport, postal and warehousing sector — are protected by minimum pay standards.
But Billson is calling for policies that ensure fairer payment towards sole traders, who are often overpowered in disputes with business partners holding out on payment.
Changing gender makeup in focus
Extra attention should be paid to the changing gender dynamics of solo businesses, according to the ASBFEO.
The data shows the number of women working as sole traders grew 31% between 2017-18 and 2021-22, far outpacing the 15% growth for men.
This change overlaps with caring responsibilities: women sole traders were primarily responsible for a growing number of sole traders providing unpaid care over the same period.
“Their dual role as business operators and carers is often invisible in policy debates but is central to many families and communities,” the report found.
The ASBFEO says future policies affecting the small business sector should recognise the growing cohort of sole traders who care for others on top of their paid work, and sole traders who require help with their own health challenges.
“If Australia is truly the land of opportunity and entrepreneurship, we must ensure sole traders – in all their variety – get the recognition and support they deserve,” said Billson.
