Following the Federal Election on 3 May 2025, the Australian Labor Party has been returned to government with a clear majority. This result provides continuity and allows the Government to proceed with its policy agenda aimed at supporting Australian businesses, particularly small enterprises.
Several key initiatives announced or extended by the Government may offer practical benefits to your business:
- Instant Asset Write-Off Extended: The Government intends to extend—and potentially expand—the $20,000 instant asset write-off. This allows eligible small businesses to immediately deduct the full cost of qualifying asset purchases, rather than spreading the deduction over the asset’s effective life. The measure is designed to improve cash flow and encourage capital investment in tools, machinery, and equipment.
- Enhanced Deduction for Employee Training: A 20% bonus tax deduction will be available to small businesses (with aggregated turnover under $50 million) for eligible expenditure on external training courses provided to employees. This incentive reduces the cost of upskilling your workforce and addresses skill shortages while supporting long-term business capability and productivity.
- Energy Support Measures: To assist with rising utility costs, small businesses will receive direct energy bill relief of $150 this financial year. Additionally, under the Energy Efficiency Grants for SMEs program, $56.7 million in funding will be made available, with individual grants of up to $25,000 to assist over 2,400 businesses in undertaking energy efficiency upgrades. Eligible projects may include replacing inefficient equipment or improving climate control systems.
- Digital Technology Investment Incentives: The Technology Investment Boost remains available, offering small businesses an additional 20% tax deduction on eligible digital expenses. This includes investment in cybersecurity, cloud-based software, and e-commerce solutions. The measure is capped at $20,000 and applies to businesses with turnover below $50 million. These deductions aim to help businesses modernise their operations and remain competitive in an increasingly digital environment.
We encourage all clients to consider how these incentives can be applied to support business goals and strategic investments in the year ahead.
If you would like tailored advice on how to make the most of these measures—whether through immediate asset purchases, staff development, or digital upgrades—please get in touch with our office. We’re here to support your business growth and ensure you’re well-positioned to benefit from the current policy environment.
