The Coalition's Budget Reply: the business insights

What was in the Coalition's Budget Reply that could impact your business? We’ve summarised all the proposed announcements that could impact your small business.

The Albanese Labor Government delivered its Federal Budget on 26 March. There was little of note for small businesses, save for extended energy relief. But there were some business focused points in the Coalition’s Budget Reply, delivered by Peter Dutton on the following day.

With a General Election now called for 5 May 2025, both the Budget and the Budget Reply carry more weight and set out both party’s fiscal approaches for the year ahead.

So, how did the Coalition’s response compare to the Government’s plans?

Overview of the Coalition’s Budget Reply

The Australian Coalition's Budget Reply outlined several policy announcements that could directly impact your small business:

Instant Asset Write-Off

The Coalition plans to increase the instant asset write-off from the current $1,000 to $30,000, making this a permanent measure. This would allow small businesses to immediately deduct the cost of eligible assets, reducing their taxable income.

Business Meal Expense Deduction

A deduction of up to $20,000 per year for business-related meal expenses would be introduced. This rather contentious initiative aims to support the hospitality sector and encourage businesses to hold events and reward staff. But it’s been seen as a ‘free lunch’ for more senior executives by some commentators.

Apprentice and Trainee Incentives

The Coalition would reinstate incentive payments for employers to hire and train apprentices. Small and medium-sized businesses would receive $12,000 to support new apprentices or trainees in critical skills areas, particularly in the building and construction sector.

Regulatory Burden Reduction

The Coalition has committed to removing regulatory burdens, where possible, particularly where there’s duplication across local, state and federal governments. This aims to reduce what’s seen as the growing compliance burden on small businesses.

Energy Costs

The Coalition would implement a national gas plan, with the goal of reducing gas prices, which could lower operating costs for some small businesses. The Coalition continues to support nuclear energy, stating that this energy solution will be cheaper than renewable solutions.

Fuel Excise

The Coalition would halve the fuel excise for 12 months, which would reduce transportation costs for businesses that rely on vehicles.

Talk to us about the impact of the Budget Reply

At this stage, it’s a close call as to which party will be in power come 6 May.

If you are concerned about the different potential outcomes for business, please do come and talk to us.

Our team can run you through the implications of the various proposed announcements and how they could impact your business in the short to medium term.