The 2024–25 Federal Budget has been handed down against a backdrop of cost-of-living pressures, tight labour markets, and slowing economic growth. The government announced they would be focusing spending on relief for households and investment in critical industries like housing, energy, and skills.
But what does it mean for small business? While the Budget doesn’t offer sweeping tax cuts or new grant programs, it does include several targeted measures to help small operators manage rising costs, upskill their workforce, and resolve disputes more easily.
1. Instant Asset Write-Off Extended
The popular instant asset write-off scheme has been extended until 30 June 2025. Small businesses with an annual turnover under $10 million can immediately deduct the cost of eligible assets costing less than $20,000. This is particularly helpful for those needing to upgrade equipment or invest in tools, as it improves cash flow and reduces taxable income.
2. $325 Energy Bill Relief
To ease the burden of high electricity costs, eligible small businesses will receive a $325 rebate on their energy bills. This is part of a broader energy relief package also offered to households and is a welcome boost for businesses grappling with operating cost increases.
3. Skills & Training Incentives
The government is investing in workforce development, including 300,000 fee-free TAFE places and 20,000 targeted construction training spots. While not exclusive to small business, this initiative supports employee upskilling and helps employers address skills shortages at no direct cost.
4. Help with Disputes
An additional $2.6 million will be given to the Australian Small Business and Family Enterprise Ombudsman to assist small businesses with alternative dispute resolution services. This funding is aimed at helping businesses, especially those without legal support, resolve issues more quickly and affordably.
5. ATO Compliance Crackdown
The ATO will ramp up efforts to recover over $18 billion in unpaid small business taxes. Increased scrutiny will be applied through an expanded Shadow Economy Program, so it’s more important than ever for businesses to stay on top of lodgements and payment plans.
Final Thought
While not overly generous, the Budget’s measures offer practical support in key areas. Small business owners should take full advantage of the available incentives—and ensure compliance remains a top priority.
