Instant Asset Write Off to Stay
While the Albanese government has extended the $20,000 Instant Asset Write-Off for another year, this measure has received a lukewarm reception from some business advocates.
The Council of Small Business Organisations Australia (COSBOA), for instance, is strongly calling for a more significant, permanent increase of the threshold to $150,000, arguing it’s needed to truly stimulate broader SME investment.
Energy Bill and Sustainability Supports
There’s greater confidence among business and industry experts regarding Labor’s suite of energy policies, which are expected to deliver welcome relief from rising cost pressures for SMEs over time.
Key initiatives contributing to this positive assessment include the introduction of battery subsidies, enhanced rebates for small business energy consumers, the ongoing commitment to the Energy Efficiency Grants for SMEs, and, significantly, the continuation of FBT exemptions on electric vehicles, a stark contrast to the Coalition’s pre-election promise to abolish them.
Streamlining Business Practices
The re-elected Labor government is rolling out several initiatives aimed at benefiting SMEs and streamlining business operations. Key among these are plans to extend Unfair Trading Practices protections to small businesses and bolster enforcement of industry codes in sectors like food, grocery, and franchising, with the Australian Competition and Consumer Commission (ACCC) receiving additional funding for improved franchising oversight.
Businesses will also see a $207 million investment over two years (from 2025/26) to stabilise national business registers and better integrate Director Identification Numbers. Broader red tape reduction efforts involve collaboration with states and territories on national electrical licensing, standardised screening for care sector workers, and streamlining commercial planning, zoning, and approvals for modern construction methods.
Industrial Relations Changes
Industrial Relations (IR) has been a significant domain of legislative reform under the Labor government, a trend set to continue with their strengthened mandate from the 2025 election. The previous term saw the Albanese administration roll out substantial changes, such as ‘right to disconnect’ provisions and modernised award definitions to increase the national minimum wage.
Looking ahead, SMEs can expect further evolution in IR policy. The re-elected Labor government is pursuing a ban on most non-compete clauses and has indicated significant, and potentially debated, changes to superannuation regulations.
TL;DR – Key Impacts for SMEs from Labor’s 2025 Win:
- Instant Asset Write-Off: The $20,000 threshold is extended for another year, but business groups are pushing for a permanent increase to $150,000.
- Energy Costs & Sustainability: Experts are optimistic that Labor’s policies (like battery subsidies, rebates, energy efficiency grants, and retaining EV FBT exemptions) will help reduce energy costs for SMEs over time.
- Industrial Relations: Expect continued IR reforms from Labor, building on past changes with new proposals like a ban on most non-compete clauses and significant superannuation adjustments.
- Streamlining Business: Labor is also rolling out fairer trading protections for SMEs, investing in business register upgrades, and working on national red tape reduction (e.g., licensing, planning).
