As the election campaign ramps up, the major parties are doubling down on tax relief, energy support, and boosting investment in digital tools and infrastructure.

Each is pledging to tackle both the short-term challenges and long-term growth of SMEs. Here's a breakdown of what Labor and Liberal are offering.

Labor Party:

1.    Instant asset write-off extension

Labor plans to extend the $20,000 instant asset write-off for small businesses for another 12 months, helping businesses quickly deduct the cost of new assets.

2.    Support for digital transformation

They’re proposing support for small businesses to adopt digital tools and technologies. This includes grants and assistance to improve business efficiency and online presence.

3.    Energy and cost of living relief

Labor aims to reduce energy costs for small businesses by helping them transition to cleaner, more affordable energy sources, including a plan to subsidise household battery costs. Labor will reintroduce a $150 rebate on household and small business power bills, automatically applied in two instalments from July. A two-stage tax cut will also begin—$5 a week from July 2026, increasing to $10 a week from July 2027.

4.    Workforce development

Labor focuses on expanding access to training and development programs, helping small businesses upskill their workers and adapt to changing market conditions.

5.    Tax Reform

Proposing changes to make the tax system fairer and simpler for small businesses, potentially including tax cuts and more efficient compliance measures.

Coalition (Liberal-National) Party:

1.    Permanent instant asset write-off

The Coalition wants to make the instant asset write-off permanent, increasing the cap to $30,000 for businesses with turnovers up to $10 million, helping SMEs invest in assets without waiting for tax rebates.

2.    Energy 

The Coalition plans to address rising costs by providing businesses with more affordable energy options and supporting them through lower power prices to improve their profitability. Dutton has proposed a National Gas Plan that prioritises domestic supply to lower wholesale prices, which he argues will benefit manufacturers and businesses facing high energy costs. 

3. Cost of living relief

The Coalition plans to halve the fuel excise for 12 months, cutting fuel prices by 25 cents per litre and saving the average person around $14 a week. It will also offer a one-off tax offset of up to $1,200 for those earning under $144,000, with the full amount going to low-income earners and tapering for higher incomes.

4.    Tax and regulatory reforms

The Coalition aims to simplify the tax system for small businesses, cutting red tape and reducing compliance costs, so SMEs can focus on growing their businesses rather than dealing with complex regulations. Small businesses will get a $2000 tax deduction for tech upgrades, and entrepreneurs will benefit from discounted tax rates for three years to support small-scale traders.

5.    Infrastructure investment

They’re planning significant infrastructure investments in regional areas, which could benefit SMEs by improving access to markets and lowering logistics costs.

Read our press release

The Australian Chamber of Commerce and Industry has been keeping track of policy announcements from both the major parties in the pre-election period. Click here for more details on Labor and Coalition spending.