The Treasurer, Jim Chalmers, delivered the Federal Budget 2025on Tuesday 25 March, which sets the financial plans for Australia, ahead of the upcoming election. This Budget introduced several changes, including tax cuts and cost-of-living relief. But what does it mean for small businesses?

Here's a quick summary of the key points that could affect your business.

Overview of the main Federal Budget

The Treasurer focused on providing cost-of-living relief, strengthening Medicare, and building Australia’s future. This includes:

• Tax cuts for all taxpayers
• Energy bill rebates for households and small businesses
• Cheaper medicines and student debt relief
• Significant investments in housing, education, and infrastructure
• Improvements in debt and deficit figures since the Albanese Labor Government took office
• Support for fair competition and regional development

Energy Bill Relief

Approximately one million small businesses will receive $150 off their energy bills until the end of 2025. This will help mitigate the impact of ongoing high energy costs for many small business owners.

Energy Efficiency Grants for SMEs

The government is offering $56.7 million in grants for small and medium-sized businesses to help improve energy efficiency. These grants, up to $25,000, can be used for upgrades like replacing inefficient appliances.

Competition and Fair Trading

The government is cracking down on unfair trading practices, such as those by supermarkets, to make things fairer for small businesses. The ACCC (competition watchdog) will be given more power to enforce rules, and penalties will increase.

Support for Australian-Made Products

The government is backing the production of green metals in Australia, which may open up opportunities for businesses in related industries. There's also new funding available through the Future Made in Australia Innovation Fund for clean technologies.

Ongoing Support for Small and Local Businesses

The Budget includes continued support for small businesses, making it easier to start, run, and grow your business. This includes:

• Protection against unfair trading practices
• Funding for the Buy Australian Campaign to support local businesses
• Resources for regulators to create a level playing field
• Tax relief for hospitality venues, brewers, distillers, and wine producers

National Broadband Network (NBN)

Increased funding of $3 billion in equity to complete the NBN rollout, which is essential for business productivity, particularly in regional and remote outback areas.

National Licencing

A new national licensing scheme for electricians will be introduced, which will eventually extend to other trades. This will reduce red tape and make it easier for tradespeople to work across states.

Non-compete clauses

Abolishing non-compete clauses for most Australian workers will create more worker mobility, and also making it easier for people to create small businesses.

Major infrastructure investment

Major infrastructure investment in building new housing, upgrading highways and servicing the rail network will provide opportunities for many small contractors.

Helping you plan for the proposed Budget changes

If you believe any of the Treasurer’s Budget announcements will affect your small business, we’re here to explain the changes, find a solution and grab the opportunities.