What Labor’s re-election means for your small business

Here’s what small business owners need to know (and act on) right now.

1. Instant Asset Write-Off: the clock’s ticking, or is it?

One of Labor's first moves is to keep the $20,000 Instant Asset Write-Off in place until 30 June 2025 (Treasury). That means you can still deduct eligible business purchases like tools, equipment, and tech up to that amount multiple times, not just once.

🔔 But heads up: a further extension is possible but not yet law, and the ATO is getting an extra $160 million in funding to audit over-claimers (Budget 2025-26).

Tip: Don't delay if you're eyeing any purchases and can absolutely afford them. Plan to buy and claim before 30 June 2025 while the current $20k Instant Asset Write-Off is still in place.

2. Less red tape, more support

The National Small Business Strategy (worth $640 million) will keep rolling, aiming to make it easier to start and run a business (overview). Think fewer council delays, more coordination between state and federal programs, and easier access to digital advice.

One standout: the Digital Solutions Program which gives you subsidised support for cybersecurity, e‑commerce, and AI tools.

Tip: If you haven’t tapped into this yet, it’s a smart way to level up without blowing your budget.

3. Help with hiring and training

Labor is expanding free training, pledging 100,000 fee-free TAFE places every year from 2027, with 20,000 spots in construction starting as early as 2025.

They’re also tweaking migration settings to make it easier to sponsor essential workers, especially in regional areas, and prioritising occupations like chefs, tradies, early educators and aged care workers (Skilled Migration Priority List).

Tip: If you’ve struggled to hire, these changes could ease the pressure.

4. New rules on contracts and climate

Already in effect: tougher unfair contract laws and bigger ACCC penalties. These came in back in late 2023 and will continue to apply this term.

Coming soon: mandatory climate-related financial risk disclosures for businesses earning $50 million+ a year. While most SMEs won’t have to report directly, they may still face pressure from suppliers or large clients to provide emissions-related info.

Tip: Don’t panic, but start considering how your business fits into your clients’ sustainability goals.

5. Energy bill relief and renewable opportunities

From 1 July 2025, eligible small businesses will get a $650 electricity rebate if they use under 100 MWh per year. It’s modest, but it helps.

Meanwhile, the massive $20 billion Rewiring the Nation program continues, opening up new contract work for electrical, civil works, and engineering businesses across clean energy infrastructure.

Tip: If you’re in the trades or support industries, keep an eye on state and local renewable project tenders.

6. Inflation and interest rates: a mixed bag

Inflation is cooling - headline CPI hit 2.4% in March 2025 - but the RBA cash rate remains at 4.10% after a recent cut.

So while government incentives help, real borrowing costs are still high, especially for smaller and regional businesses.

Tip: Keep a close eye on cash flow and don’t overextend based on past tax breaks.

Final word

Labor’s re-election brings continuity, but also urgency. If you’re a small business owner, now’s the time to:

• ✅ Make your eligible purchases before 30 June 2025 to claim the Instant Asset Write-Off
• ✅ Tap into free digital and business advice through the Digital Solutions Program
• ✅ Use fee-free TAFE training to ease hiring challenges
• ✅ Be ready for changes in compliance, especially around tax audits and climate expectations

Those who take advantage of what’s available early will be better placed to stay productive and profitable in the years ahead.

With built-in business accounts, AI-powered tax forecasting, and automated BAS lodgment, Thriday helps you take full advantage of initiatives like the Instant Asset Write-Off while staying ahead of ATO scrutiny, without the usual financial admin headaches.

‍

‍