The Australian Labor Party has claimed a decisive win in the 2025 Federal Election, securing a strong majority on 3 May. With another three-year term, Labor is set to roll out initiatives aimed at supporting small businesses, encouraging digital transformation, and reducing operational costs.
If you’re running a small business in Australia, here’s what Labor’s policies mean for you.
1. $20,000 Instant Asset Write-Off Extended
Labor has pledged to extend and potentially expand the $20,000 instant asset write-off, giving small businesses the ability to immediately deduct the full cost of eligible assets instead of depreciating them over time.
This scheme is a powerful tool for boosting cash flow and encouraging investment in essential equipment and infrastructure.
2. 20% Tax Deduction for Employee Training
Eligible businesses with an aggregated annual turnover under $50 million will continue to benefit from a 20% bonus tax deduction for external employee training and development programs.
This incentive is designed to support workforce upskilling while easing the financial burden of training costs—especially useful in a tight labour market.
3. Energy Bill Relied & Efficiency Grants
Labor’s energy relief measures include a $150 discount on power bills for small businesses through to the end of 2025.
Additionally, the Energy Efficiency Grants for SMEs will deliver over $56 million in funding, with individual grants of up to $25,000 to help businesses upgrade to more energy-efficient appliances and systems.
4. Boosted Support for Digital Transformation
Under the Technology Investment Boost, eligible small businesses can claim an extra 20% tax deduction on digital tools and platforms, including cybersecurity software, cloud-based systems, and e-commerce platform development.
This initiative allows businesses to deduct up to $20,000 per year in qualifying digital expenses, making it easier to stay competitive in an increasingly digital economy.
Start Planning for Growth in 2025 and Beyond
With these tax incentives and funding opportunities available, now is the time to act. Whether you’re a startup or a well-established business, you could benefit significantly from these government initiatives.
Need help navigating your options?
Get in touch with us to discuss how programs like the instant asset write-off or digital transformation boost can support your 2025 business strategy.
