25 March 2025
Federal Budget lacks vision and ambition – small businesses feel ignored
- 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.
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About CPA Australia
CPA Australia is Australia’s leading professional accounting body and one of the largest in the world. We have more than 174,000 members in over 100 countries and regions. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au
Contact details:
Simon Downes, External Affairs Lead, simon.downes@cpaaustralia.com.au or 0401 461 503
