The Federal Budget, announced on 25 March 2025, provides a range of support programs to help improve the operating environment for small business owners.
Here is an overview of the key announcements likely to have an impact on small businesses in Western Australia.
Please note: these announcements will need to be passed as law through the Federal Parliament.
Tax related measures
Income tax cut
The first marginal tax rate will be lowered from 16 per cent to 14 per cent over two years, starting from 1 July 2026. The Federal Government estimates that 1.5 million sole traders will benefit from this measure.
Freeze on alcohol excise
From August 2025, the alcohol excise for draught (kegged) beers will be frozen for two years. This measure will provide $165 million in tax relief for brewers, distillers, wine producers and hospitality venues.
Instant asset write-off reduced
From 1 July 2025, the threshold for the instant asset write-off will be reduced from $20,000 to $1,000.
Small business support programs
Energy bill relief
Eligible small businesses will receive a $150 credit from the Federal Government towards their electricity costs, which is expected to benefit around 1 million small businesses.
The rebate will be applied automatically to energy bills from 1 July 2025 in two quarterly instalments of $75.
Energy Efficiency Grants program
Grants of up to $25,000 will be available to help small and medium businesses fund energy upgrades, such as replacing inefficient appliances and improving heating systems. In total, $56.7 million has been committed to the scheme which is expected to help more than 2,400 businesses.
Cyber security support
To help small business owners build their in-house digital capability and protect their business from cyber threats, the Federal Government will continue to fund the following programs:
- Cyber Wardens - providing free online training for small business owners and their staff.
- Small Business Cyber Resilience Service - helping businesses build their cyber resilience and provides support when businesses are affected by a cyber incident.
- Cyber Health Check - interactive tool that will help businesses assess their cyber security maturity.
- Digital Solutions program - providing low cost one to one advice to help business owners adopt and/or enhance their use of digital technologies.
Improving protections under the Franchising Code
Funding of $7.1 million over two years will be provided to the Australian Competition and Consumer Commission’s enforcement of the Franchising Code to extend protections from unfair contract terms and unfair trading practices to businesses regulated by the Franchising Code.
Support for Aboriginal businesses
An investment of $23.9 million over five years will be made to strengthen the Indigenous Procurement Policy. An additional $3.4 million will be committed over three years to establish place based business coaching and mentoring programs for First Nations business women and entrepreneurs.
Incentives for eligible construction apprentices
Small businesses employing apprentices in priority occupations may be eligible for up to $5,000 as part of the Priority Hiring Incentive, which includes a range of trades relevant to housing construction.
Non-compete clause ban
The Federal Government is planning to ban non-complete clauses for employees earning less than $175,000 per year, which will benefit employees looking to start their own businesses.
National licensing for electrical trades
The Federal Government will work with State and Territory Governments to establish a national licensing scheme for electrical trades people to allow them to work across states and territories without the need to apply for a separate licence or paying additional fees.
More information
Visit the Budget website for more information on these and other commitments announced as part of the Federal Budget.
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