How the 2025 Federal Budget Affects Australian Small Businesses

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 was extended for eligible businesses, allowing them to immediately deduct the full cost of qualifying assets. 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 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 were meaningful reforms to payroll tax harmonisation — a perennial issue for businesses operating across borders. SBTC will continue to advocate through the government reform agenda. Visit business.gov.au for a full summary of Budget measures affecting small business.

SBTC Calls for Reform of Unfair Contract Terms Laws for Small Business

The Small Business and Trade Council of Australia (SBTC) has lodged a detailed submission to the Australian Treasury calling for a comprehensive review and strengthening of unfair contract terms (UCT) protections for small businesses. The submission follows widespread member feedback that existing laws still leave many sole traders and small operators exposed when dealing with larger commercial partners.

The Problem

Standard-form contracts in commercial leasing, telecommunications, logistics and supply chain agreements frequently contain provisions that small businesses have no meaningful ability to negotiate. Despite recent UCT reforms extending to small businesses, SBTC members have reported ongoing challenges in enforcing their rights and understanding which provisions qualify as “unfair”.

According to data from the Australian Competition and Consumer Commission (ACCC), complaints from small businesses about unfair contract terms have remained consistently high, with retail and franchising sectors among the most frequently cited.

Key Recommendations

  • Expand the definition of “small business” in the UCT framework
  • Introduce a model contract term library as a reference baseline
  • Require government agencies to publish plain-English guidance on unfair terms by industry
  • Fund the ACCC to conduct annual compliance audits in high-risk sectors

For more information on the UCT framework and your rights, visit the Fair Work Ombudsman or contact the SBTC policy team.

How the 2025 Federal Budget Affects Australian Small Businesses

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.

SBTC Calls for Reform of Unfair Contract Terms Laws for Small Business

The Small Business and Trade Council of Australia (SBTC) has lodged a detailed submission to the Australian Treasury calling for a comprehensive review and strengthening of unfair contract terms (UCT) protections for small businesses. The submission follows widespread member feedback that existing laws still leave many sole traders and small operators exposed when dealing with larger commercial partners.

The Problem

Standard-form contracts — particularly in commercial leasing, telecommunications, logistics and supply chain agreements — frequently contain provisions that small businesses have no meaningful ability to negotiate. Despite the 2022 UCT reforms extending to small businesses, SBTC members have reported ongoing challenges in enforcing their rights and understanding which provisions qualify as “unfair”.

According to data from the Australian Competition and Consumer Commission (ACCC), complaints from small businesses about unfair contract terms have remained consistently high, with retail and franchising sectors among the most frequently cited industries.

Key Recommendations

  • Expand the definition of “small business” in the UCT framework to better reflect the diversity of the sector
  • Introduce a model contract term library that businesses can use as a reference baseline
  • Require government agencies to proactively publish guidance on common unfair terms in specific industries
  • Fund the ACCC to conduct annual compliance audits in high-risk sectors

SBTC President noted that while the 2022 amendments were a significant step forward, implementation support for small businesses has been limited. “Most of our members do not have in-house legal counsel. They need practical, plain-English guidance on what they are and are not required to accept in a contract.”

For more information on the UCT framework and your rights, visit the Fair Work Ombudsman or contact the SBTC policy team.