On Saturday night, Prime Minister Anthony Albanese secured a second term, and the Labor Party won 85 seats in the House of Representatives. The dust is still settling, but if you’re currently running a small-to-medium-sized business, it’s important that you stay informed about how this landslide victory may impact your top and bottom line.
Economic and Policy Landscape
The Albanese government has made it clear that small businesses remain central to its agenda. The latest budget outlines over $640 million in targeted supports to help ease pressure, drive growth, and level the playing field for SMEs. This includes investments in cyber resilience, digital capability, and business register modernisation, as well as efforts to cut red tape through national licensing and streamlined planning.
Cyber and Digital Support
Cyber security is a growing concern for businesses of all sizes. The government is investing over $60 million to help small businesses boost their digital and cyber resilience, including free tailored assistance, online training, and voluntary cyber health checks. For SMEs, these programs are aimed at reducing the risk and cost of cyber incidents, which now average around $46,000 per event.
Regulatory Changes and Taxation
One of the Albanese government’s headline policies is the extension of the $20,000 Instant Asset Write-Off. Here’s the fine print:
The $20,000 threshold is now extended until June 2026, but only for businesses with an aggregated turnover of less than $10 million.
If your business turns over between $10–$20 million, you are no longer eligible for this immediate deduction and must revert to standard depreciation rules for new asset purchases.
For eligible small businesses, this means you can instantly write off the cost of multiple assets under $20,000 each, improving cash flow and supporting investment in equipment and technology.
For mid-sized businesses (over $10 million turnover), asset purchases must be depreciated over several years as before.
While the government positions this as part of broader fiscal discipline, industry groups and the opposition have criticized the move, arguing it could stifle business investment at a sensitive time.
Cost of Living and Economic Headwinds
The Albanese government faces pressure to address rising costs for both households and businesses. The election campaign focused heavily on cost-of-living issues, and businesses will be watching closely for measures that might ease wage pressures, supply chain disruptions, and global economic uncertainty – especially with ongoing trade tensions and shifting international conditions.
Looking Ahead
Labor’s message is one of stability and support for small business, with a focus on digital transformation, cyber security, and regulatory streamlining. However, the reduction in immediate tax relief through the Instant Asset Write Off will require SMEs to reassess their investment strategies and cash flow planning.
As always, it’s a time to review your business fundamentals: keep an eye on costs, stay proactive about cyber risks, and look for ways to leverage new government programs. If you have questions about how these changes might affect your business, please don’t hesitate to reach out. We’re here to help you navigate the next chapter.
– Justin
Disclaimer: The information in this article is of a general nature. It does not take your specific needs or circumstances into consideration. You should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.
