Federal Budget announcement 2025 – updates for businesses

The key considerations for businesses as a result of the 2025-2026 Federal Budget announcement are as follows:

1. Extension of hiring incentives for apprentices
There will be an extension to the existing apprentice hiring incentives program until 31 December 2025, which will continue to offer potential employers up to $5,000 as part of a ‘priority hiring incentive’.
This will be coupled with payments provided directly to apprentices working in construction related fields with up to $10,000 worth of incentives to complete their training.

2. Extension of energy bill relief
Around 1 million small businesses are set to receive two further $75 rebates off their quarterly energy bills, with the relief program now extended to 31 December 2025.
Most customers will automatically have the relief applied via their retailer and won’t be required to take any action.

3. Energy Efficient Grants
The Government has announced its ‘Energy Efficiency Grants for Small and Medium Sized Enterprises program’ which is providing $56.7 million in grants of up to $25,000 to over 2,400 businesses, funding a range of energy upgrades, such as replacing inefficient appliances and improving heating systems.
This will be available to small to medium sized businesses with a headcount of 1 – 199 employees.

4. More cash for customers from tax cuts
The budget has stated that it will put an average of $50 a week back into the pockets of workers.

5. Reforms to abolish non-compete clauses for workers
Businesses looking to pursue the best talent and lure them from competitors may now be presented with an opportunity to do so. The proposal will see ‘non-compete’ clauses banned for workers earning less than $175,000 a year.

6. Support for the hospitality sector and alcohol producers
The Government has announced it will provide support for hospitality venues, brewers, distillers and wine producers by firstly, pausing biannual indexation on draught beer excise and excise equivalent custom duty rates for a two-year period, from August 2025 through until August 2027.
Secondly, by increasing the excise remission cap from $350,000 to $400,000 per financial year, from 1 July 2026, for the Excise Remission Scheme and Wine Equalisation Tax for all eligible brewers and distillers.

7. Instant asset write-off
There has been no update or mention of the previous ‘Instant Asset Write Off, or IAWO’ continuing past 30 June 2025, when it’s due to end. Up until 30 June 2025, eligible small businesses with turnover of less than $10 million may deduct the cost of assets up to $20,000 immediately, rather than depreciating them over time. Without an extension to this, from 1 July 2025 this limit will reduce to $1,000.