--- title: "Federal Budget 2025–26: What actually matters for small business" description: What does the 2025–26 Federal Budget mean for small business? Get the key updates—tax cuts, ATO funding, energy rebates, and asset write-offs—in this practical breakdown from Trekk Advisory. image: https://trekkadvisory.com.au/hubfs/Blog%20Images/Blog-Image-Trekk-Brisbane.png --- [!["Trekk Advisory" logo: bold black "Trekk" in modern font with smaller red "ADVISORY" below on a white background.](https://trekkadvisory.com.au/hs-fs/hubfs/Logos/trekk-advisory-logo-black%201.png?width=150&height=75&name=trekk-advisory-logo-black%201.png "\"Trekk Advisory\" logo: bold black \"Trekk\" in modern font with smaller red \"ADVISORY\" below on a white background.")](https://trekkadvisory.com.au) - [Featured services](https://trekkadvisory.com.au/how-we-help) - [Business accounting](https://trekkadvisory.com.au/small-business-accountants) - [Clarity Bookkeeping](https://trekkadvisory.com.au/clarity-bookkeeping) - [Xero cloud accounting](https://trekkadvisory.com.au/xero-cloud-accounting) - [Advice + business advisory](https://trekkadvisory.com.au/business-advisory-services) - [Tax minimisation + planning](https://trekkadvisory.com.au/tax-minimisation-and-planning) - [Self-managed super funds](https://trekkadvisory.com.au/self-managed-super-funds) - [Business Valuations](https://trekkadvisory.com.au/business-valuations) - [How we help](https://trekkadvisory.com.au/how-we-help) - [Understand your numbers](https://trekkadvisory.com.au/how-we-help/understanding) - [Grow your numbers](https://trekkadvisory.com.au/how-we-help/growth) - [Leverage your numbers](https://trekkadvisory.com.au/how-we-help/leverage) - [Who we are](https://trekkadvisory.com.au/our-team) - [Resources](https://trekkadvisory.com.au/information-centre) - [Get in touch](https://trekkadvisory.com.au/contact) - QLD - [Brisbane](https://trekkadvisory.com.au/brisbane) - [Gympie](https://trekkadvisory.com.au/gympie) - [North Queensland](https://trekkadvisory.com.au/north-queensland) - [Rockhampton](https://trekkadvisory.com.au/rockhampton) - NSW - [Northern Rivers](https://trekkadvisory.com.au/northern-rivers) [Download: Success Checklist](https://trekkadvisory.com.au/business-success-checklist) ![](https://trekkadvisory.com.au/hubfs/Blog%20Images/Blog-Image-Trekk-Brisbane.png) March 28, 2025 By Troy Furness # Federal Budget 2025–26: What actually matters for small business ##### Share: - - - The Federal Budget has landed for 2025–26. If you’re running a business, your inbox has probably been flooded with headlines and summaries—but most small business owners just want to know: *What does this mean for me?* The short answer? There’s not a lot in this year’s budget directly aimed at small business. But there are still a few key measures worth paying attention to—especially with 30 June right around the corner. You can watch our quick video summary at the top of this page. It covers the key points in under three minutes, cutting through the noise and delivering what you actually need to know.   Below, we break down the most relevant elements of the 2025–26 Budget for business owners. ### Personal income tax cuts: not a huge impact The headline of this year’s Budget is the staged reduction in personal income tax, set to begin on 1 July 2026. The tax rate for the $18,201–$45,000 bracket will drop from 16% to 15%, and then to 14% from 2027–28. The result is a maximum saving of $268 in the 2026–27 year, and $536 from 2027–28. These changes apply to individual taxpayers across the board—not just small business owners—but they’re unlikely to make a significant difference to most cash flows. ### The $20,000 instant asset write-off is ending One of the more impactful small business measures isn’t something new—it’s what’s missing. The popular $20,000 instant asset write-off, which allows eligible businesses to immediately deduct the full cost of qualifying assets, **is currently set to end on 30 June 2025**. From 1 July, unless legislation changes, the threshold drops to just $1,000. This change affects decisions around equipment upgrades, vehicle purchases, and other key investments. If you’re considering a purchase that would qualify, it’s worth getting advice and actioning it well before the financial year ends. ### ATO compliance is ramping up The ATO is receiving nearly $1 billion in additional funding over the next four years to expand its compliance programs. This includes taskforces focused on: - Tax avoidance - The shadow economy - Personal income tax compliance - Audits for medium-to-large businesses and high-wealth individuals The government expects these programs to return more than three times what they cost, which means an increase in audit activity is almost certain. If you’ve been putting off sorting out your books or finalising reporting issues, now’s the time to get things in order. ### Energy rebate for households and small business The Budget includes an extension of energy bill relief, with a $150 credit automatically applied to power bills for eligible households and small businesses. The credit will be delivered in quarterly instalments from July through to December 2025. No applications are required—it will be applied directly to your bill. While the rebate won’t drastically reduce operating costs, every bit helps in an environment where utility prices continue to put pressure on the bottom line. ### Help to Buy scheme expanded—but still not active The government has pledged $800 million to expand the Help to Buy program, which allows eligible Australians to co-purchase a home with the government—reducing the deposit and loan required. The scheme offers up to 30% equity for existing homes and up to 40% for new builds. Importantly, the income thresholds have increased to $100,000 for singles and $160,000 for joint applicants. However, despite the funding, the program is **still not open for applications**—and no timeline has been confirmed. This makes it more of a political announcement than a practical opportunity for now. ### Freeze on beer excise and changes to non-compete clauses From August 2025, indexation on draught beer excise will be paused for two years, holding prices steady for breweries and hospitality venues. Separately, a major industrial relations shift is on the way. From 2027, the government intends to ban non-compete clauses for most employees earning under the high-income threshold (currently $175,000). This change is designed to encourage job mobility and competition in the labour market, and may require businesses to review their employment contracts over the next 12–24 months. ### The bigger picture: economy, deficit, and what’s next This year’s Budget is framed by slow national growth, rising debt, and growing global economic uncertainty. Key forecasts include: - Real GDP growth of 2.25% in 2025–26 - A deficit of $42.1 billion - Net debt increasing to 21.5% of GDP - Unemployment expected to peak at 4.25% It’s also worth noting that several major Budget measures—such as the super tax on balances over $3 million and the asset write-off extension—**haven’t yet passed Parliament**. If Parliament is dissolved ahead of an election, those measures will lapse unless reintroduced by the next government. In other words, there’s still more to play out—especially with an election looming later this year. ### What now? While this Budget isn’t packed with surprises, it does serve as a reminder that **EOFY is approaching fast**, and the small windows of opportunity we do have—like the $20,000 asset write-off—may be closing. If you're unsure how the Budget impacts your plans for the rest of the financial year, or you want to make sure you're in the best position ahead of 30 June, now’s the time to talk to your Trekk advisor. **Book your tax planning chat today.** #### About Author [Troy Furness](https://trekkadvisory.com.au/information-centre/author/troy-furness) Troy is one of the Directors of Trekk and our self-appointed 'Chief Ideas Person'. He's a CPA with more than 30 years in public practice, private enterprise, across large firms, family businesses and his own practice. He has also sat on the other side of the desk. Troy was general manager of his family's business. He led the contract to feed Australian Defence troops in East Timor during the peacekeeping mission. He has been and still is an executive director of a number of businesses and is now a Non-Executive Director of a large charity. Today Troy works with business owners and Boards of businesses turning over $5M to $100M. His work covers virtual CFO services, forecasting and scenario planning, tax and structuring advice, board advisory and business valuations, including valuations for family law matters. He tells clients what they need to hear, not just what they want to hear, and he looks for the fairest outcome for everyone at the table. The best piece of advice he's been given is "Work hard and the rewards will come, if you give up, then so will the rewards." Outside work, you'll find Troy travelling to tick off the bucket list or out on his bush block. #### Related Posts [![](https://trekkadvisory.com.au/hubfs/Blog%20Images/new-ato-travel-and-meal-rates-sept-blog.png)](https://trekkadvisory.com.au/information-centre/new-ato-travel-and-meal-rates-what-you-can-actually-claim) September 24, 2026 #### [New ATO Travel and Meal Rates: What You...](https://trekkadvisory.com.au/information-centre/new-ato-travel-and-meal-rates-what-you-can-actually-claim) Each year, the ATO updates its reasonable travel and overtime meal allowance rates, and each year... 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