The upcoming Federal Budget is poised to address key concerns for Australia’s small businesses, with a focus on cost-of-living relief, tax incentives, and easing the burden of regulatory compliance. As Treasurer Jim Chalmers prepares to unveil the budget, anticipation is high for measures aimed at fostering growth and stability within the sector.
Key Takeaways
Extended energy bill rebates for eligible small businesses.
Potential for a permanent instant asset write-off, though details remain fluid.
A strong push for reduced regulatory burdens and simplified compliance.
New initiatives to support specific sectors like fresh produce suppliers and First Nations entrepreneurs.
Energy Bill Relief Extension
Eligible small businesses are set to benefit from an extension of energy bill rebates, valued at $150. This measure, part of a broader cost-of-living support package, will see these rebates applied automatically to energy bills from July 1, 2025, through to the end of the year. The initiative aims to alleviate financial pressure on businesses and households alike, with the government estimating it will reduce headline inflation and household energy bills.
The Future of Instant Asset Write-Off
The popular instant asset write-off scheme, which allows small businesses to immediately deduct the cost of eligible assets, is a significant point of discussion. While the current $20,000 threshold is set to revert to $1,000 without new legislation, there is strong advocacy for its permanent reintroduction, with some industry bodies proposing a higher threshold of $150,000. The final form of this policy remains a key area to watch.
Tackling Compliance and Red Tape
Reducing the “disproportionate burden” of regulatory compliance for small businesses is a central theme in pre-budget submissions. Organizations like COSBOA are advocating for simplified compliance, standardized definitions of ‘small business,’ and mutual recognition of licenses across states. The introduction of mandatory small business impact statements for new legislation is also being proposed to ensure that new rules do not unduly burden smaller enterprises.
Sector-Specific Support and Other Initiatives
The budget is also expected to include targeted support for various sectors. This includes funding for fresh produce suppliers dealing with major supermarkets, initiatives to boost First Nations entrepreneurs, and measures to enhance protections against unfair trading practices. Furthermore, reforms to alcohol excise and a ‘Buy Australian’ plan aimed at increasing government contract opportunities for local businesses are anticipated.
Addressing the Shadow Economy and Corporate Integrity
Significant funding is earmarked to combat the shadow economy and illegal phoenixing. This includes bolstering the Australian Taxation Office’s compliance programs to tackle under-reporting of income and worker exploitation, as well as enhancing the Australian Securities and Investments Commission’s (ASIC) systems to prevent dodgy directors from abandoning company debts. The Director Identification Number scheme will also receive increased investment to improve its backend systems and interconnections with company registers.
Other Notable Measures
Other potential measures include a ban on non-compete clauses for workers earning below $175,000, which aims to foster entrepreneurship, and continued investment in Free TAFE programs to upskill the workforce. The government is also looking to refine alcohol excise reforms, including expanding remission schemes for brewers and distillers and freezing indexation on draught beer.
Sources
THE NEWS WRAP: Government unveils new tax break for small businesses, SmartCompany.
The 2025-26 budget for small business: What we know so far, SmartCompany.
Make SME compliance easier, cheaper: COSBOA budget wishlist, SmartCompany.
13 things SMEs need to know, SmartCompany.
$150 energy bill relief for one million SMEs, SmartCompany.