The Albanese Labor Government delivered its Federal Budget on 26 March, with limited focus on small businesses—mainly extending energy relief. However, the Coalition’s Budget Reply, presented by Peter Dutton the following day, included several business-focused proposals.

With the General Election now scheduled for 5 May 2025, both the Budget and the Budget Reply are crucial in outlining the fiscal approaches of each party for the year ahead.

So, how did the Coalition’s response compare to the Government’s plans?

Overview of the Coalition’s Budget Reply

The Australian Coalition's Budget Reply outlined several policy announcements that could directly impact your small business:

Instant Asset Write-Off

The Coalition plans to increase the instant asset write-off from the current $1,000 to $30,000, making this a permanent measure. This would allow small businesses to immediately deduct the cost of eligible assets, reducing their taxable income.

Business Meal Expense Deduction

A new $20,000 annual deduction for business-related meal expenses would be introduced. This initiative aims to support the hospitality sector and encourage businesses to host events and reward staff. However, some critics argue that it benefits senior executives disproportionately.

Apprentice and Trainee Incentives

The Coalition would reinstate incentive payments for employers to hire and train apprentices. Small and medium-sized businesses would receive $12,000 to support new apprentices or trainees in critical skills areas, particularly in the building and construction sector.

Regulatory Burden Reduction

The Coalition has committed to removing regulatory burdens, where possible, particularly where there’s duplication across local, state and federal governments. This aims to reduce what’s seen as the growing compliance burden on small businesses.

Energy Costs

The Coalition’s national gas plan aims to reduce gas prices, potentially lowering operating costs for small businesses. The Coalition also supports nuclear energy, arguing it could be more affordable than renewable energy solutions.

Fuel Excise

The Coalition would halve the fuel excise for 12 months, which would reduce transportation costs for businesses that rely on vehicles.

Talk to us about the impact of the Budget Reply

It’s still uncertain which party will be in power come 6 May. If you’re concerned about the potential outcomes and how they could affect your business, let’s talk.



Our team is ready to walk you through the implications of these proposals and how they might impact your business in both the short and medium term.