With the Australian federal election looming on May 3rd, Australia’s major political parties are sharpening their pitches – not just to voters, but to the country’s 2.5 million small and medium-sized businesses.
From tax write-offs to workforce reform, the policies proposed by Labor and the Coalition reflect different visions for the future of Australia’s economy.
In this guide, we break down the headline business policies from each of the major parties.
Labor – Short-term relief and workforce reform to support a sustainable economic recovery
Labor is leaning toward short-term financial relief and structural workforce reform when it comes to supporting businesses, with longer-term incentives tied to sustainability and skills development. Here’s what’s on the table:
Instant asset write-off: Many small businesses were surprised when the budget didn’t include an extension to the instant asset write-off. But Labor has said it will extend the policy by 12 months if it wins the election. The party’s rationale for an extension rather than making the write-off permanent – which the Coalition has proposed – is to encourage businesses to invest in growth now.
Power bill relief: Labor plans to reintroduce the $150 electricity rebate for households and small businesses, paid in two instalments from July 2025. This is part of a wider plan to ease energy cost pressures amid ongoing cost of living and inflation concerns.
Apprenticeship wage support: A $10,000 bonus wage for apprentices in the housing and construction sector is on Labor’s agenda, to be paid over the course of training to tackle skills shortages and support its housing targets.
Ban on non-compete clauses: Labor announced plans to ban non-compete clauses for workers earning under $175,000 in this year’s budget, which will come into effect in 2027. The treasurer, Jim Chalmers, said the clauses were “holding too many Australian workers back from going to better-paid opportunities or setting up small businesses”.
Investment in energy transition: Labor continues to support clean energy policies, including funding for renewable infrastructure. While less directly tied to SMEs, these investments aim to lower long-term energy costs and create supply chain opportunities in emerging sectors.
Coalition – Tax cuts and deregulation to boost growth and confidence
The Coalition’s business policies centre on tax relief, deregulation, and incentives that aim to stimulate economic activity and reduce red tape for SMEs. Here’s a breakdown of the key proposals:
Instant asset write-off: The Coalition has committed to lifting the instant asset write-off threshold to $30,000 for businesses with an annual turnover under $10 million, and making the scheme permanent.
Meals and entertainment deductions: Under this proposal, eligible businesses will be able to deduct up to $20,000 annually for dining and entertainment expenses (excluding alcohol). The policy is pitched as a way to support the hospitality sector.
Fuel excise cut: In response to cost-of-living concerns, the Coalition proposes halving the fuel excise for one year, reducing it from 50 to 25 cents per litre, which could lower transport and logistics costs for SMEs.
Apprenticeship hiring incentive: The Coalition plans to implement a $12,000 incentive for SMEs to hire new apprentices or trainees in priority sectors, such as construction. The payment would be staggered over the apprenticeship term, providing ongoing support for employers.
Right to disconnect repeal: The party wants to reverse newly implemented “right to disconnect” laws, which allow employees to ignore unreasonable after-hours work communications without penalty.
Vehicle efficiency standards rollback: The Coalition wants to scrap the New Vehicle Efficiency Standard (NVES), which requires automakers to meet emissions targets. They argue the NVES raises costs for popular vehicles used by individuals and small businesses.
Industrial relations deregulation: The Coalition has indicated it would repeal several of Labor’s recent industrial relations changes, although specific reforms haven’t been fully detailed.
Australian Greens – Support for small businesses and local economies
The Greens policies for small businesses are “focused on giving small businesses and cooperatives the support they need to thrive in tough economic times”. Key policies include:
Grants for small businesses: The Greens want to support small business growth and innovation by establishing an incubator, which will provide 1,000 grants of $250,000 and 10,000 grants of $50,000 – $75,000 for startups and cooperatives that “enhance local economies and create jobs”.
Instant asset write-off: Like Labor, the Australian Greens have proposed extending the $20,000 instant asset write-off and the Small Business Energy Incentive Scheme to 1 July 2026.
Teal Independents – Focused on simplifying regulations
The Teal Independents haven’t announced any specific policies for small businesses, however, they are pushing to reduce “red tape”.
Small business definition: Late last year, eight independent federal MPs signed a letter to Employment Minister Murray Watt, calling on him to change the definition of “small business” from 15 employees to 25.
Tax reform: Allegra Spender, independent member for Wentworth, has also advocated for tax reform. “I don’t have any particular views on the answers, but I am saying that we need to put [proposals to increase taxes including the GST, superannuation and abolishing negative gearing] on the table and properly consider them,” Spender said to the Financial Services Council.
What should businesses take away from the election policy debate?
Both Labor and the Coalition have made clear overtures to SMEs – but their strategies reflect different philosophies. There are some clear winners, including the construction and hospitality sectors.
No matter which party wins the Federal election, businesses will need to stay agile. Changing policy landscapes create both opportunities and risk. Being prepared – and well-informed – will be key to making the most of what’s ahead.
While the election outcome is yet to be decided, Octet helps businesses prepare for uncertainty and risk. We offer fast, flexible funding solutions, such as Trade Finance and Debtor Finance, to manage cash flow, drive growth and support your goals. Connect with our team today to explore how we can power your business.
