The 2025 Federal Budget delivered a mixed bag for Australia’s small business community. SBTC has analysed the key measures and their practical implications for members across all sectors.
Instant Asset Write-Off Extended
The instant asset write-off threshold was extended to businesses with an annual turnover of up to 10 million dollars, allowing eligible businesses to immediately deduct the full cost of assets costing less than 20,000 dollars. While SBTC had advocated for a higher threshold, the extension is welcomed as a practical measure supporting capital investment in small firms.
Full details on eligibility and how to claim are available from the Australian Taxation Office, which has updated its small business tax guidance portal with worked examples.
Energy Bill Relief Fund
Eligible small businesses will receive energy bill credits applied automatically through their electricity retailer. The measure is designed to reduce operational cost pressures that have been a consistent concern raised in SBTC’s annual member survey.
What Was Missing
Notably absent from the Budget were meaningful reforms to payroll tax harmonisation between states and territories — a perennial issue for businesses operating across borders. SBTC will continue to advocate for a nationally consistent approach through the Council of Australian Governments business reform agenda.
Members can access SBTC’s full Budget analysis brief in the member resources portal, or visit business.gov.au for a summary of all Budget measures affecting small business.
