Federal Budget 2025: Please sir, can I have some more?

The Albanese Government has pledged additional support for small businesses in the 2025-26 Federal Budget, including extending energy bill relief and introducing new measures to promote fair competition. But small business advocates say the budget falls short of delivering the long-term vision needed to help businesses survive and grow.

Commenting on the Budget, Small Business Minister Julie Collins highlighted the government’s commitment to easing cost pressures, particularly in the face of rising energy prices.

“We know small businesses are doing it tough,” Minister Collins said. “We want small businesses to grow, employ more Australians, and expand their market share.”

The budget includes an additional $150 rebate on energy bills for around one million small businesses, bringing total energy relief to $800 since 2022-23. There are also new measures to ensure faster payment times for contractors in construction and targeted support for hospitality and alcohol producers.

“In this budget, we’ve committed more than $2 billion to targeted support for small businesses,” Minister Collins said. “We’re also working with states and territories through the National Small Business Strategy to ensure small businesses remain at the centre of Australia’s productivity and innovation agenda.”

Business groups call for more support

Despite these initiatives, small business advocates argue the budget lacks the reforms needed to drive real change.

The Council of Small Business Organisations Australia (COSBOA) labelled the budget a “missed opportunity,” saying it fails to address key concerns, including the uncertainty surrounding the Instant Asset Write-Off (IAWO).

“Small business needs certainty when it comes to the Instant Asset Write-Off,” said COSBOA CEO Luke Achterstraat. “Not only is this measure unaccounted for in the budget, but it is yet to even be legislated for this financial year.”

With rising insolvencies and increasing cost pressures, Achterstraat warned that the government needed to provide a clearer roadmap for small business growth.

“Unfortunately, the budget largely recycles existing policies and fails to substantially deliver for the 2.6 million small businesses in Australia and the 5 million people they employ,” he said.

COSBOA did, however, welcome new measures to strengthen protections for small businesses, including extending unfair trading protections and increased enforcement of the Franchising Code of Conduct.

VIC Chamber of Commerce pans budget for lack of small biz support

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra welcomed infrastructure investment but criticised the budget’s lack of small business support:

“While we welcome the investment in infrastructure in Victoria, this is clearly an election budget which stops short of providing support for small and medium businesses to ensure Victoria’s future prosperity.”

Guerra said the budget failed to set the nation on a clear path to economic growth,

“There needed to be stimulus for Victorian small, medium and family businesses. Instead, we got more workplace overreach in the form of banning non-compete clauses, and no money to incentivise business via instant asset write-offs or assistance to hire apprentices.”

Hospitality sector disappointed

Restaurant and Catering Australia said the budget served up an empty plate for the sector with very few initiatives for hospitality.

R&CA CEO Suresh Manickam said the budget was crucial to ensure the viability of small businesses in hospitality, as they face energy costs spiralling out of control, a skilled shortage crisis and turbulent economic headwinds from volatile consumer sentiment.

“The announcements tonight have overlooked the restaurant and catering sector for another year. This year’s Budget leaves crumbs on an otherwise empty plate for Australia’s restaurant and catering sector,” Manickham said.

CPA Australia says budget ‘lacks vision’

CPA Australia also criticised the budget, saying it failed to deliver real incentives for small business growth and innovation. CEO Chris Freeland said while household cost-of-living measures were front and centre, businesses were largely left out in the cold.

“The budget lacks ambition and a thorough understanding of what business needs,” Freeland said. “Not enough is being done to slash red tape or create the conditions that would shift the dial on Australian productivity and competitiveness.”

Freeland was particularly disappointed that the government did not make the Instant Asset Write-Off permanent, arguing that businesses need long-term certainty to plan and invest.

“Small businesses – many of which have thin margins – needed a budget that would significantly alleviate the cost pressures they face every day,” he said.

While acknowledging the $150 energy bill rebate as a small win, Freeland said the budget missed the opportunity to introduce meaningful support for small business innovation.

“Our research shows Australian small businesses are lagging behind most countries in the Asia-Pacific when it comes to adopting new technologies,” he said. “Without proper incentives and support, they’re less likely to experience growth.”‍

Election-year promises?

With a federal election on the horizon, business groups are now looking to both major parties for stronger commitments to small business.

COSBOA’s Luke Achterstraat challenged the government and opposition to present a more comprehensive small business growth strategy.

“With an election pending, we challenge both major parties to propose substantive development and growth strategies for small business,” he said. “Providing certainty and encouragement to the 5.6 million Australians who own or work in a small business must be a priority.”

For now, small business owners will have to wait and see if additional support is announced in the lead-up to the election.

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