Treasurer Jim Chalmers’ pre-election Budget was announced on Tuesday, with the Federal Government failing to deliver initiatives that would improve business productivity, innovation, and growth, according to CPA Australia.

CPA Australia CEO Chris Freeland 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.”

Freeland said new personal tax cuts from 1 July 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,” 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.”

Budget 2025-26 incentives for small businesses include:

• Building a future made in Australia: This Budget provides $20 million to support Australian producers through the Buy Australian Campaign, aiming to encourage consumers to buy Australian‑made products. It will drive industry investment and innovation in more sustainable goods and services by applying the Environmentally Sustainable Procurement Policy to a further $4.5 billion of public procurement.
  
• More energy bill relief: The Federal Government is extending energy bill relief for six months to the end of 2025. Around one million eligible small businesses will receive up to $150 in rebates directly off their bills. The Energy Efficiency Grants for Small and Medium Sized Enterprises program is providing $56.7 million in grants of up to $25,000 to more than 2,400 businesses, funding a range of energy upgrades, such as replacing inefficient appliances and improving heating systems.
  
• Levelling the playing field: The Federal Government will work with states and territories on extending Unfair Trading Practices protections to small businesses. It is providing $7.1 million over two years to strengthen the Australian Competition and Consumer Commission’s enforcement of the Franchising Code. The Federal Government will extend protections from Unfair Contract Terms and Unfair Trading Practices to businesses regulated by the Franchising Code, subject to consultation.

Freeland said the $150 energy bill relief would assist businesses in managing soaring costs; however, the Budget lacked support or incentives to help small businesses innovate and adopt new technologies.

“The business community expects the government and opposition will announce measures during the upcoming election campaign that would significantly reform regulation, taxes and incentives,” Freeland added.

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