The 2025–26 Australian Federal Budget delivers a broad suite of measures aimed at supporting SMEs through investment, cost relief, and regulatory reform.
Here are the top 10 highlights you need to know.
1. Energy Relief and Efficiency Grants
The Government will extend the Energy Bill Relief until the end of 2025, providing $150 in energy rebates to around 1 million eligible small businesses.
An additional $56.7 million has been allocated to the Energy Efficiency Grants for SMEs, enabling over 2,400 businesses to access grants of up to $25,000 for upgrades such as replacing inefficient appliances and equipment.
2. Instant Asset Write-Off Reversion
The $20,000 instant asset write-off will not be extended, with the threshold scheduled to revert to $1,000 from 1 July 2025.
Eligible businesses should act before 30 June 2025 to take full advantage of the current threshold and maximise their immediate deductions on qualifying asset purchases.
3. Tax Cuts for Sole Traders
Approximately 1.5 million sole traders will benefit from tax cuts introduced in this Budget, aimed at improving cash flow and reinvestment capacity.
4. Buy Australian Campaign
A further $20 million will support the Buy Australian Campaign, encouraging consumers to prioritise locally made goods and helping boost the visibility of domestic producers.
5. Hospitality & Beverage Manufacturing Relief
From August 2025, indexation on draught beer excise will be paused for two years, while rebates for alcoholic beverage manufacturers are expected to deliver $165 million in sector-wide savings over five years.
6. Strengthening Protections for Fresh Produce Suppliers
The Government will provide $2.9 million to help fresh produce suppliers enforce their rights under the now-mandatory Food and Grocery Code of Conduct, which includes multi-million-dollar penalties for supermarket breaches.
7. Housing Construction Workforce Incentives
To meet the target of building 1.2 million new homes over five years, the Government will establish a Housing Construction Apprenticeship stream under the new Key Apprenticeship Program.
From 1 July 2025, eligible apprentices will receive up to $10,000, while the Priority Hiring Incentive—offering up to $5,000 for employers—has been extended to 31 December 2025.
8. National Licensing for Electricians
The Government will develop a national occupational licence for electricians, allowing them to operate across jurisdictions with a single licence, improving labour mobility.
9. Empowering First Nations Enterprises
To enhance participation and wealth-building in Indigenous communities, the Budget includes:
- $23.9 million over five years to strengthen the Indigenous Procurement Policy
- $3.4 million over three years to establish business mentoring programs for First Nations businesswomen and entrepreneurs
10. Promoting Fairer Business Practices
An investment of $7.1 million over two years will enhance the ACCC’s enforcement of the Franchising Code, while broader protections against unfair trading practices will be extended to support small businesses.
In addition, non-compete clauses will be banned for low and middle-income workers, encouraging entrepreneurship and new business formation by removing restrictive employment barriers.
