Limited time offer: No repayments on business loans for the first 6 weeks. Offer ends June 30. T&Cs. Apply now.

What does the Federal Budget mean for small businesses?

From improved payment times to energy rebates, here are seven takeaways for small business owners from the 2024-2025 Federal Budget.

From the instant asset write-off extension to improved payment times, energy rebates, mental wellbeing support and apprentice incentives, here are seven takeaways for small business owners from the 2024-2025 Federal Budget.

At a glance

Here's a snapshot of the article’s advice:

  • The $20,000 instant asset write-off has been extended.
  • Around one million eligible small businesses will receive energy rebates of $325.
  • Funding of around $10.8 million will allow financial counselling and mental health support for small business owners to continue.
  • The Budget follows the highest month on record for business insolvencies, with 1,136 businesses falling in March, according to the Australian Securities and Investments Commission.

1. Instant asset write-off extension

Over a quarter (28%) of small business owners were keen to see an increased threshold for the instant asset write-off, according to pre-Budget research from YouGov commissioned by Prospa.*

While this didn’t happen, the temporary increase in 2023 to $20,000 for businesses with turnover up to $10 million has been extended for another 12 months to 30 June 2025. The threshold applies on a per-asset basis so small businesses can instantly write off multiple assets.

“The immediate concern for small businesses right now is the cost of doing business,” said Prospa Co-Founder Beau Bertoli. “Consumer spending may take a while to return to previous levels, so measures like the extension of the instant asset write off measure could help small businesses to re-equip and invest in productivity to grow different areas of their business .”

2. Improved payment times

The government tagged $25.3 million to support the Payment Times Reporting Regulator to implement reforms recommended by a statutory review that will help small businesses improve payment times.

It also gave $23.3 million to increase e-invoicing adoption, which will help to disrupt scams.

3. Energy rebates and other cost relief

Around one million eligible small businesses will benefit from rebates of $325 offered through the Energy Bill Relief Fund from 1 July, which is slightly more than the $300 given to households.

This may please the 46% of Australian business owners who said they would like more rebates or subsidies on business expenses including energy in the Budget, according to YouGov’s research.

In an attempt to reduce the administrative burden for small business, the government will abolish 457 nuisance tariffs and deliver $10 million to provide additional support for small business employers administering the Paid Parental Leave Scheme.

Bill Lang, Executive Director of Small Business Australia, welcomed the extension of the instant asset write-off and the energy rebate, but worried any upfront gains would quickly be wiped away should inflation remain high and interest rates increase.

“These measures are minimal in reality for small business owners, many who are struggling to keep their heads above water,” he said. “What we need is reform that simplifies employment practices for small businesses, provides reliable and cheap energy supply and drives the cost of production down.”

4. Funding for mental health and compliance

The Budget invested $10.8 million over two years to continue the Small Business Debt Helpline and the NewAccess for Small Business Owners program, which provide financial counselling and mental health support for small business owners.

To help small businesses understand and comply with recent changes to workplace laws, the government also gave $20.5 million to the Fair Work Ombudsman over four years.

Lang said funding to the Fair Work Ombudsman equated to just $13 for each employing business, which he said would do little to help businesses unravel complex workplace legislation.

The Budget also provided $3 million to implement the government’s response to the review of the Franchising Code of Conduct, including remaking and enhancing the code, and an extra $2.6 million to support more small businesses through alternative dispute resolution.

5. Support for local industry and innovation

Treasurer Jim Chalmers said the transition to Net Zero by 2050 was a chance for innovative startups and small businesses to transform Australia into a leader in green energy. He announced a new $1.7 billion Future Made In Australia Innovation Fund focused on developing industries such as green metals and low carbon fuels.

A further $1.5 billion is reserved for renewable energy production incentives, boosting the Solar SunShot and Battery Breakthrough initiatives.

Luke Achterstraat, CEO of Council of Small Business Organisations Australia (COSBOA), criticised the Budget for favouring selected industries.

“While some measures are welcome, small business has been left behind,” he said. “Unfortunately, this Budget concentrates on big government projects.”

6. Help to boost skills

The Budget allocated $500 million for training in priority industries.

Eligibility to the New Energy Apprenticeships Program will be expanded to include clean energy, construction and advanced manufacturing, with businesses in those sectors given access to $10,000 in incentive payments.

The government will also extend its $5,000 support payments to apprentices in priority occupations for another 12 months to 1 July 2025, with employers to receive a $5,000 hiring incentive.

It will also deliver an extra 20,000 fee-free TAFE places in courses relevant to the construction sector.

7. Support for farmers

To help prepare Australia for natural disasters, the government will provide $519.1 million from its Future Drought Fund to help farmers and rural communities manage climate change impacts and prepare for future droughts.

Whether you’re taking advantage of tax deductions, supplier sales or gearing up for the new financial year – we’ve got your back. The Prospa Business Line of Credit comes with an easy online application and fast approval times – apply today.

The information in this post is provided for general information only and does not take into account your personal situation. Nothing contained in this post constitutes advice or an endorsement or recommendation of any kind by Prospa. Any links to third party websites are strictly for informational purposes only. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information as at the date of publication, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information for any reason, including due to the passage of time, or any loss or damage suffered by any person directly or indirectly through relying on this information.