What does the Federal Budget mean for small businesses?

The Federal Government’s 2025-26 Budget will focus on energy bill relief and digital support for small businesses such as cafés as well as tax cuts for Australians on average incomes.

In response to ongoing energy cost challenges, the Government is extending its energy bill relief for small businesses. Eligible businesses will receive up to $150 in rebates off their energy bills, with cumulative savings potentially reaching $800 per business over the past three budgets.

Additionally, the Government is funding the Energy Efficiency Grants for Small and Medium-Sized Enterprises program with $56.7 million, offering businesses grants of up to $25,000 for energy upgrades.

The Government has also turned its attention to the hospitality sector by pausing indexation on draught beer excise and customs duty. Meanwhile, support for alcohol producers will provide relief estimated to reduce government receipts by $165 million over the next five years.

Furthermore, the Government is working with states and territories to extend protections against Unfair Trading Practices for small businesses. As part of this effort, $7.1 million will be allocated over two years to enhance the Australian Competition and Consumer Commission’s (ACCC) enforcement of the Franchising Code.

The Budget also outlined more than $60 million in funding to support small businesses with digital and cyber security enhancements.