Federal Budget 2025: What retailers need to know

While households will benefit from tax cuts, energy bill relief, and increased funding for healthcare and childcare, business owners, especially in the retail sector, are calling the budget a missed opportunity.

The government has announced minor tax relief, reducing the first tax threshold from July 2026. This will provide an extra $268 per year to the average worker, rising to $536 in mid-2027. While this may help with consumer confidence, it offers little direct relief for business owners.

Retailers express concern over lack of business support

The Australian Retailers Association (ARA) and National Retail Association (NRA) welcomed cost-of-living measures but said the government had missed an opportunity to support struggling businesses.

ARA Chief Industry Affairs Officer Fleur Brown noted that while these measures may help consumer confidence, they don’t address the ongoing challenges small business owners face.

“It’s been five years of economic uncertainty for Australian retailers who are still weathering the consumer spending slowdown coupled with ongoing and rising costs of doing business. More focused support is needed to ensure vulnerable businesses and small businesses, in particular, can survive and grow,” Brown said.

She also highlighted concerns over regulatory burdens, saying, “It’s disappointing there seems to be more funding in this budget to enhance red tape and regulation compliance than to educate or relieve businesses of that administrative burden.”

Cost of doing business

NRA Interim CEO Lindsay Carroll emphasised that retail, as Australia’s largest private sector employer, needs continued government support to maintain stability and protect jobs.

“Retailers face persistent cost pressures—from rising leasing, energy, transportation, and insurance costs to supply chain impacts. Our retailers are also having to compete with ultra-low-cost global operators who don’t pay taxes or employ Australians. We can’t have an economic recovery without a retail recovery, and we need to make sure they have the means to compete.”

Carroll also noted the lack of clear measures to help businesses recover from natural disasters such as ex-Tropical Cyclone Alfred, which has caused at least $13.5 billion in damages.

As Australia heads into an election period, the ARA and NRA have pledged to keep retail and small business concerns on the political agenda. Small business owners should stay informed about potential policy changes and advocacy efforts that could shape future support measures.

For now, while the budget provides some cost-of-living relief, many small businesses may feel left out when it comes to meaningful support to ease financial pressures and drive long-term growth.

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