With Labor securing a second term in Australia’s 2025 federal election, business owners can expect a sense of continuity — but that doesn’t mean things will stay exactly the same.
The Albanese Government is largely sticking to its existing direction: steady trade relationships, incremental financial relief, and long-term investments in skills and sustainability — commitments reflected in the 2025–2026 Federal Budget.
But not everyone is content with the status quo. Industry voices are urging the Government to go further in supporting SMEs. “With the majority of our members being small business owners, we also encourage the Government to continue to expand on support for small businesses,” said Anja Pannek, CEO of the Mortgage and Finance Association of Australia (MFAA), speaking to The Adviser.
David Bushby, CEO of the Commercial and Asset Finance Brokers Association of Australia (CAFBA), echoed this sentiment: “Australia faces many global headwinds, and it is vital that the Government seeks the views of small and medium sized businesses, who are collectively the major employers in Australia.”
Policies SMEs can plan for now
While Labor’s re-election signals stability, several policy updates are set to impact the way small and medium businesses operate in the coming months and years. Here’s a reminder of Labor’s key business initiatives now that election day is behind us.
After months of uncertainty, Labor passed legislation for the $20,000 instant asset write-off just days before the election. The policy has been extended for 12 months to encourage near-term investment, but is not yet permanent.
A $10,000 wage subsidy will be available for apprentices in construction and housing, paid in stages over their training period. It comes into effect from 1 July 2025.
From 2027, employees earning under $175,000 will be free to change jobs or start new ventures without being held back by non-compete clauses. Treasury estimates this reform could boost GDP by $5 billion annually, though some employers have raised concerns about talent retention.
For the first time, businesses bidding for Commonwealth contracts must meet a formal definition of an ‘Australian business’. This includes being majority Australian-owned or principally traded on an Australian equities market, being a tax resident of Australia, and having a principal place of business in Australia.
From July through December 2025, eligible small businesses will receive a $150 electricity rebate — less than last year’s $325 but still a nod to ongoing inflation and cost of living pressures.
The Australian Competition and Consumer Commission will receive $7.1 million from 2025-26 to strengthen its oversight of the franchising sector and ensure fairer conditions for operators.
Labor has allocated over $365 million to ASIC and the ATO to step up enforcement and modernise systems to target illegal phoenixing practices.
Strategic signals to watch closely
Labor has also released frameworks and strategies that will influence future reform. From procurement to clean energy, they can help businesses plan ahead and stay aligned with Government priorities.
A national consumer-facing campaign to promote Australian-made goods is in the works, with $20 million committed in the budget. Details on exactly how the funds will be spent are still to come.
Labor is pushing toward 82% renewable energy in the grid by 2030 and has expanded the Clean Energy Finance Corporation to unlock an additional $8 billion for clean tech investment. While not targeted at businesses directly, these initiatives are expected to drive down energy costs over time and open up new supply chain opportunities in future-focused industries.
Framed as a “collective vision for the small business sector”, this 62-page strategy outlines goals such as cutting red tape, improving digital access to government services, aligning regulatory definitions across states, and streamlining dispute resolution. It’s not binding — yet — but could shape future reform efforts.
A moment for business confidence
While Labor’s re-election doesn’t bring dramatic change for SMEs, its steady policy direction may offer something equally valuable: certainty.
With major disruptions off the table, and modest reforms underway, now could be a good time for businesses to consider growth investments or explore new markets.
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Disclaimer: These comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
