Federal Budget lacks vision and ambition - small businesses feel ignored
Content Summary
- Government fails to make instant asset write-off permanent
- Income tax cuts do not deliver wholesale relief
- No fresh incentives to revitalise small business sector
- Businesses remain tangled in red tape
- $500 million for decisions taken but not yet announced.
Household cost-of-living measures were front and centre of Treasurer Jim Chalmers’ pre-election Budget tonight, but the government has failed to deliver initiatives that would improve business productivity, innovation and growth.
CPA Australia Chief Executive Officer Chris Freeland AM said: “Businesses and their advisers will find little in the federal Budget that will help offset the pain all-too-many small businesses have been experiencing.
“The Budget lacks ambition and a thorough understanding of what business needs. Not enough is being done to slash red tape or create the conditions and improve policy development that would shift the dial on Australian productivity and competitiveness.”
Mr Freeland said new personal tax cuts from July 1, 2026, may capture the public’s attention but would fail to really help most Australians.
“SMEs – many of which have thin margins – needed a Budget that would significantly alleviate the cost pressures they face every day,” Mr Freeland said.
“The unrelenting rise in insurance premiums and the burden of utility bills, materials, wages, fuel and various other inflationary pressures are hard to manage.
“Though the emphasis on relieving pressures on household finances was expected, a more business-centric Budget would have benefitted all Australians because small businesses are significant contributors to the economy and job creation.
“The instant asset write-off is a prime example. Tonight, it should have been made permanent – but it remains in limbo. Making it permanent would provide the certainty and opportunity businesses need to invest and grow. They cannot make serious long-term financial decisions when the rules could change every year.”
Mr Freeland said the $150 energy bill relief would assist businesses in managing soaring costs, and a national licensing scheme for electricians might serve as a template for other as-yet unspecified occupations.
However, the Budget lacked support or incentives to help small businesses innovate and adopt new technologies. As research from CPA Australia released on Monday shows, Australian small businesses trail most countries in the Asia-Pacific region in these areas, and are ultimately less likely to experience growth.
“The business community expects the government and Opposition will announce measures during the upcoming election campaign that would significantly reform regulation, taxes and incentives,” Mr Freeland said.
Media contact
Simon Downes, External Affairs Lead
[email protected]
T: +61 401 461 503
Discover more
Hongyu Feng
- Media
VIC Division Transcript 25 Sept 24
- Media
CPA Australia Podcasts
CPA Australia podcasts provide commentary and thought leadership across business, finance and accounting.
- Media
Paul Leroy
- Media
Colin Mackenzie
- Media
WA Member Snapshot - Abhi Singh CPA
In this initiative, we meet West Australian members and gain insights into their sector and their role. This month, we chat to Abhi Singh CPA from the Curtin University School of Accounting, Economics and Finance.
- Media
Member access only