The Budget implications for Business

What is available and what does the Budget mean for your business? Overall, it has provided very little for small businesses.

The 4th Budget release announced on 25 March was very much an election related budget aimed towards middle Australians and contained measures mainly previously mentioned. A few token relief changes but not the tax reform Australia is desperately needing.

Instant Asset write-offs

The federal budget did not include an extension to the $20,000 instant asset write-off tax benefit to small businesses. This will end at its current level on the 30 June 2025 and will revert to $1,000 from 1 July 2025.

Grants

The Energy Efficiency Grant for Small and Medium Sized Enterprises program continues and is available in grants of up to $25,000 to support businesses to upgrade or replace inefficient equipment to improve their energy efficiency.

Non-Compete Clause

Businesses may face more competition to hang on to staff. The federal government has proposed a legislation to abolish non-compete clauses for workers earning less than $175,000. This will allow workers to be free to start their own business or move to a more productive, higher paying job in a competing business. For well-funded businesses, removing non-competes creates opportunities; for small businesses, it adds hiring challenges.

The government has also pledged to eliminate loopholes that enable businesses to manipulate wages and enforce “no-poach agreements”.

Hospitality Sector and Alcohol Producers

The government has restated previous announcements. Hospitality businesses, particularly Beer brewers, will appreciate the federal government’s two-year freeze indexation and custom duty rates for draught beer. From this August, while it is unlikely to affect the price of a pint, the move is aimed to provide support to hospitality businesses.

Eligible brewers and distillers currently receive an excise remission of up to $350,000. From 1 July 2026 the cap will increase to $400,000. Similarly, eligible wine producers currently receiving a Wine Equalisation Tax (WET) rebate of up to $350,000, will increase to $400,000.

Care Industries

Announcements of $2.6 billion in wage increases to the award wages of aged care nurses and $3.6 billion in wage increases to the award wages of early childhood education and care workers. $662.6 million has been promised to grow the primary care workforce for more doctors and more postgraduate scholarships to upskill midwives and nurses.

Construction Industry

Employers hiring apprentices in priority occupations, including many in housing construction, may qualify for up to $5,000 through the Priority Hiring Incentive. This program has been extended for six months until December 31, 2025.

The Commonwealth and state and territory governments have agreed to develop a national licensing scheme to remove border licencing for electrical trades, enabling electricians to relocate where demand is highest.

Starting July 1, 2025, eligible apprentices in housing construction trades will receive up to $10,000 in financial incentives over the course of their apprenticeships, helping attract more workers to the industry and offering cost-of-living support.