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How the Australian Federal Budget 2025 Impacts Small Businesses
The Australian Federal Budget 2025 introduced a range of measures, some of which impact small businesses across various sectors.
From tax and energy relief to digital initiatives and regulatory reforms, these changes are intended to support key operational and financial aspects of running a small business.
Here’s a breakdown of the most important updates and how they may apply to small business operations:
Tax Relief and Cash Flow Boosts
One of the key announcements was the extension of the $20,000 instant asset write-off. This allows eligible small businesses with an annual turnover under $10 million to immediately deduct the full cost of eligible business assets costing less than $20,000. The measure has been extended until 30 June 2025.
The small business company tax rate remains at 25%, and the small business income tax offset for unincorporated entities is also retained.
Energy Bill Relief
Approximately one million small businesses will receive a $325 electricity bill credit, delivered as part of a broader $3.5 billion national energy relief package.
This measure may assist small businesses—particularly those in energy-intensive sectors like retail, manufacturing, and hospitality—in managing operational costs.
Compliance and Fairer Business Conditions
The Budget introduced initiatives aimed at promoting fairness in business operations. These include:
Increased funding for the Payment Times Reporting Regulator, enhancing its ability to monitor and report on large businesses' payment practices toward small suppliers.
$23.3 million for e-Invoicing support, to encourage adoption and improve processing accuracy and speed.
New penalties for unfair contract terms, giving small businesses stronger legal standing when entering agreements with larger entities.
Cybersecurity and Digital Uplift
The government allocated $41.7 million toward cybersecurity initiatives to support small business resilience, including:
- A Cyber Wardens training program
- An online Cyber Health Check tool
- A dedicated Cyber Resilience Service to assist with incident response
In addition, funding for the Digital Solutions advisory program will continue, offering subsidised support to help small businesses with digital transformation, marketing, and systems adoption.
Mental Health and Financial Counselling
Support for small business owners’ mental health and financial wellbeing remains a focus. Two key programs have been extended:
- NewAccess for Small Business Owners – free, confidential mental health coaching via Beyond Blue
- The Small Business Debt Helpline – offering financial counselling and support
Both services are free and accessible to small business operators across the country.
Sector-Specific Initiatives
Targeted support has been outlined for specific industries:
Construction: Funding for fee-free TAFE places, streamlined skilled migration, and assistance to help small builders meet safety accreditation standards.
Technology & Startups: A $392.4 million Industry Growth Program will assist innovative businesses in scaling operations.
Agriculture: Ongoing drought resilience funding, export market support, and transition assistance for those impacted by the live sheep export phase-out.
Manufacturing: Programs to help SMEs participate in clean energy supply chains and defence procurement opportunities.
Superannuation and Employment Law Updates
The Superannuation Guarantee will increase to 11.5% from 1 July 2024, and to 12% by July 2025.
From 1 July 2026, employers will be required to pay super at the same time as wages, rather than quarterly.
The government will also begin paying superannuation on Commonwealth Paid Parental Leave from 1 July 2025.
These changes are designed to ensure employees receive more timely super contributions while supporting workplace equity.
The Broader Economic Context
According to Treasury, inflation is expected to ease and real wages to rise in the 2024–25 period. Forecasts also project modest economic growth, with a more stable and predictable business environment expected to follow.
These macroeconomic factors may influence consumer confidence, operating costs, and investment decisions for many small businesses.
How We Can Help
Navigating how federal budget measures apply to your business can be complex—especially when it comes to tax relief, grants, and compliance obligations. At TaxAssist Accountants, we work with sole traders, small companies, and startups to help them understand what’s relevant, what’s changing, and how to take advantage of available opportunities.
If you’d like tailored advice or assistance with budgeting, tax planning, or applying for grants, our team is here to support you.
Get in touch to book a consultation and ensure your business is well-prepared for the financial year ahead.
Call us on 1300 513 332 or submit an online enquiry here. We're here to help your business thrive.
Date published 26 Mar 2025 | Last updated 26 Mar 2025
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