A state government agency will reconsider the grant applications of about 12,000 small businesses worth up to $120 million, AAP reports.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Ombudsman Deborah Glass has found thousands of applications for the government's $10,000 Business Support Fund were denied because they remained in draft awaiting further information.
Others weren't processed because forms contained typographical or numerical errors, involving email addresses or other information.
"The department made mistakes. People made mistakes," Ms Glass wrote in her report tabled in state parliament on Tuesday.
"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."
More news
The Department of Jobs, Precincts and Regions was not equipped to handle the influx of demand, with only five people initially staffing its call centre.
That number later grew to 500, although outsourced workers were not granted access to the department's case management system.
While sympathetic to the time pressures on implementing the program, Ms Glass said many of the 1100-plus complaints could have been resolved internally if the department was "more reasonable".
"Good intentions got lost in translation," she wrote.
Other news
"The aim of the fund was laudable, to support a hugely vulnerable cohort affected by lockdown.
"But administering it inflexibly undermined its very purpose.
"The people were forgotten in the process."
The department has committed to reopening the scheme for eligible businesses owners who were denied the $10,000 grant.
"Sometimes, it takes the nudge of the ombudsman's elbow to encourage public servants to do the right thing," Ms Glass said.
Australian Associated Press
Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content:
- Bookmark bendigoadvertiser.com.au
- Make sure you are signed up for our breaking and regular headlines newsletters
- Follow us on Twitter @BgoAddy
- Follow us on Instagram @bendigoadvertiser
- Follow us on Google News