The Federal Budget 2025-2026 – update for small business

The Australian Government’s 2025–26 Federal Budget includes a series of measures that assist small businesses amid persistent cost-of-living pressures, economic uncertainty and tight labour market conditions. 

Tuesday’s Federal Budget also provides updated economic forecasts, with growth expected to remain subdued in the near-term before accelerating later in the forecast period.  

Small businesses may want to consider how to plan their capital expenditure with no announcements made in relation to the instant asset write-off. 

Among the Budget initiatives are: 

• Extending energy bill relief – around one million eligible small businesses will receive up to $150 off their bills until the end of 2025, bringing total energy bill relief up to $800 since 2022-23.  
• Buy Australian – the Government has committed to a $20 million “Buy Australian” campaign in 2025-26 to encourage Australians to buy locally-produced goods and services. 
• Mentoring for First Nations businesswomen – $3.4 million over three years to establish a placed-based business coaching and mentoring program for First Nations businesswomen and entrepreneurs. 
• Small business mental health and financial wellbeing – support for small business owners through the NewAccess for Small Business Owners program and Small Business Debt Helpline.  
• Disaster-affected businesses – $693.2 million in co-funding with states to support small businesses and not-for-profits affected by disasters. 
• Energy efficiency grants – assisting businesses with grants of up to $25,000 to manage their energy use and costs and improve their energy efficiency. 
• Extending protections for small businesses – extending Unfair Trading Practice and Unfair Contract Terms protections for small businesses. 

Industry-specific initiatives include: 

• Apprenticeships – a doubling of the current maximum incentive payments for eligible housing construction apprentices from $5,000 to $10,000, aimed at assisting builders and other construction industry firms. 
• Contractor payment times – 20-day payment times for contractors and subcontractors in the construction industry for work completed for Government Business Enterprises undertaking major construction activity. 
• Draught beer excise – pausing indexation on draught beer excise by increasing support available under the existing Excise remission scheme for manufacturers of alcoholic beverages and Wine Equalisation Tax Producer rebate. 
• Fresh produce suppliers – $2.9 million to help suppliers understand and enforce their rights under the Food and Grocery Code of Conduct. 
• Franchising Code of Conduct – $7.1 million over two years for the ACCC to strengthen enforcement of the Franchising Code of Conduct, ensuring more transparent and effective regulatory framework.  

Additional funds will also be provided to the Australian Taxation Office over the next four years to enhance tax enforcement efforts to support expanded data-matching and compliance activities. Small business owners are encouraged to stay up to date with their obligations and seek advice where necessary.  

More information at budget.gov.au