2025 Federal budget & Australian Small business support in 2025

The 2024–25 Federal Budget introduced several initiatives aimed at supporting small businesses. However, their effectiveness in addressing the challenges small businesses will face in 2025 remains to be seen.

Instant Asset Write-Off Extension

The extension of the $20,000 instant asset write-off for businesses with turnover below $10 million provides immediate tax relief for smaller investments. While this helps businesses upgrade tools and equipment, its $20,000 threshold may limit its utility for capital-intensive industries that require larger-scale purchases.

Energy Bill Relief

The $325 rebate for eligible small businesses under the Energy Bill Relief Fund is a step towards mitigating rising operational costs. However, with energy prices projected to remain high, this one-off relief may fall short of providing long-term financial stability.

Mental Health and Financial Wellbeing Programs

Programs like NewAccess for Small Business Owners and the Small Business Debt Helpline, funded with an additional $10.8 million, offer valuable support. These initiatives are particularly important given the increasing financial pressures and stress on business owners. Yet, the scale of funding raises questions about whether the programs will reach all those in need.

Cyber Security Initiatives

The government’s focus on cyber resilience is timely, as small businesses continue to face growing cyber threats. Programs such as the Cyber Wardens initiative and Cyber Health Check could empower small businesses to enhance their digital security. However, the success of these measures will depend on widespread adoption and the ease of accessing these resources.

Industry Growth Program

The $392.4 million Industry Growth Program aims to help start-ups and SMEs commercialize innovations. While promising for fostering entrepreneurship, the application process and the availability of mentorship will be critical to ensuring that this funding benefits businesses across diverse sectors.

Simplification of Government Procurement

Plans to simplify government procurement processes could open new opportunities for small businesses to win contracts. If implemented effectively, this initiative could provide a steady revenue stream for many. However, the success of this reform hinges on reducing red tape and ensuring accessibility for smaller players.

The Road Ahead in 2025

While the budget contains measures to address immediate concerns, such as energy costs and cyber security, some initiatives might lack the scale or scope needed to tackle the structural challenges small businesses face. Key areas such as access to finance, workforce development, and affordable insurance remain under-addressed.

Small business owners in 2025 will need to carefully navigate these programs to extract maximum benefit, while continuing to advocate for broader reforms to ensure long-term viability and growth.