ServiceNSW, once the gold standard of government engagement created by the Liberals and Nationals, has been weaponised by the Minns Labor Government in a cruel and chaotic cash grab targeting New South Wales’ smallest businesses.
Over 63,000 letters have been sent to micro-businesses, demanding reviews, or repayments of COVID-19 micro-business grants. Many of these businesses, with turnovers between $30,000 and $75,000 per year, are already under immense pressure from rising costs and economic uncertainty. Now they are being forced to spend money they don’t have on accountants just to prove their innocence. If they fail to respond within 10 business days, RevenueNSW is unleashed to begin debt recovery.
Leader of the Opposition Mark Speakman said Labor’s actions were a betrayal of small businesses and an indictment of the government’s financial desperation.
“ServiceNSW was created by the Liberals and Nationals to make government accessible, efficient, and fair. It became a trusted partner for families and businesses during tough times.
This is not a government working for the people—it’s a government scrambling to cover black holes in its budget. Instead of delivering Christmas cheer, they’re delivering chaos and crushing small businesses,” Mr Speakman said.
The Minns Labor Government has already gutted ServiceNSW with $109.6 million in cuts, including slashing 25% of Risk, Strategy and Customer Support and 31% of the Business Bureau—the very divisions needed to support businesses through this process. The results have been disastrous, with countless errors emerging.
Shadow Minister for Customer Service and Digital Government James Griffin said Labor has tarnished the reputation of one of NSW’s most trusted departments.
“ServiceNSW was a flagship achievement of the Liberals and Nationals, envied across the country for its customer-focused approach.
Under Chris Minns, it has been reduced to a Grinch-like debt collector, leaving small business owners to bear the brunt of Labor’s chaos,” Mr Griffin said.
Instead of helping businesses recover, Labor is crushing them with unnecessary stress and expense during the busiest time of year. This is a government that has no heart and no plan—just a desperation to cover its tracks.
Some businesses have been sent letters for grants they never applied for, while others are being forced to repay funds they were entitled to. Sole traders have reported spending hundreds of dollars on accountants to navigate the chaotic process. One business owner wrongly pursued for $15,000 was cleared only after providing a medical hardship letter from her doctor.
With Treasurer Daniel Mookhey poised to deliver a financial reveal with his Half Yearly Budget Review this week, just in time for Christmas, NSW families and businesses are bracing for more budget surprises.
NSW deserves better than a government that prioritises budget panic over small business recovery.
NSW is worse off under the Minns Labor Government.