Federal Budget 2025: winners and losers

The 2025 Federal Budget landed to mixed reviews. While cost-of-living support and the “Buy Australian” initiative have been welcomed, many are calling for stronger, more consistent support to help small businesses grow.

One of the only standout announcements for small business owners is the government’s push to encourage consumers to “Buy Australian,” which MYOB CEO Paul Robson sees as a positive step for local businesses.

“As a homegrown Australian business ourselves, to see support for our local SMEs filter through in these cost-of-living measures is encouraging. Supporting local operators is an important agenda item for the government, the economy and Australian consumers,” Robson said.

MYOB’s research shows that 61 per cent of consumers are willing to pay more for Australian-made products, indicating a strong foundation for this initiative. However, Robson noted that businesses still need more certainty to thrive.

“SMEs would like to see more certainty around initiatives such as the instant asset write-off. In our recent Bi-Annual Business Monitor, 58 per cent of respondents wanted to see this initiative made permanent so business owners can have greater certainty around their business planning and investment decisions.”

Cost-of-living relief: A step in the right direction

The budget includes a range of cost-of-living measures, such as energy rebates and tax cuts, that will also benefit small businesses. Small businesses will receive a $150 quarterly electricity rebate, and there are grants of up to $25,000 available for businesses to improve energy efficiency.

There are also measures to reduce script costs and increase bulk billing, as well as continued support for childcare costs, an area that many business owners say is critical for their workforce.

Not enough for long-term business growth?

Despite these benefits, some industry leaders believe the budget lacks substantial direct support for small businesses. Localsearch CEO Adam Hargraves said while the energy rebate was helpful, broader tax relief and investment incentives were missing.

“The Budget lacks substantial direct support for small businesses, which make up 97% of all Australian businesses. While initiatives like the quarterly energy rebate offer some assistance, the absence of broader tax relief and significant investment incentives leaves much to be desired,” Hargraves said.

He also pointed to the looming end of the $20,000 instant asset write-off as a major concern.

“Specifically, not extending the $20,000 instant asset write-off will be felt considerably by small businesses that rely on upgrading equipment, vehicles, and technology to stay competitive. Without this support, many will face increased financial strain, making it harder to invest in growth and efficiency.”

What’s the economic outlook?

CreditorWatch Chief Economist Ivan Colhoun noted that while the extra government spending would support economic growth, the budget comes amid global uncertainty.

“The extra spending is supportive for the economy and small business in general, though must be seen in the context of rising global growth and tariff uncertainties,” Colhoun said.

He also highlighted that the measures in the budget hinge on whether the government is re-elected, as the Opposition has already signalled potential cuts.

“The Government needs to be re-elected to pass these measures, and the election will be something of a referendum on the proposed spending. The Opposition has signalled cuts to public service staffing levels of over 41,000, which will not be helpful, especially to ACT businesses.”

The verdict: Some help, but uncertainty remains

While there are some wins in the budget for small businesses—such as energy rebates, construction and hospitality support, and cost-of-living relief—there is still a strong push from business leaders for more certainty and long-term support.

“The success of our small and mid-sized business community is intrinsically linked to our nation’s economic prosperity,” said Robson. “By addressing their key concerns around cost pressures, cashflow management, and investment support, the government would help to create an environment where these businesses can thrive in 2025 and beyond.”

With an election looming, small business owners will be watching closely to see which policies will actually make it through and whether they’ll get the support they need to keep moving forward.

Want more? Get our newsletter delivered straight to your inbox! Follow Kochie’s Business Builders on Facebook, X, Instagram, and LinkedIn.