The upcoming 2025 federal election is set to bring a wave of discussion around tax policy, employment law, energy costs, and business support in Australia. For small business owners, the outcome could mean significant changes—good or bad.
Staying informed is critical. In this article, we break down what the major parties are proposing, what issues matter most to small businesses, and how you can prepare, no matter who wins.
1. Why the Federal Election Matters to Small Business
Elections are more than politics—they directly influence the economy, tax structures, and how businesses operate.
Key areas affected:
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Company and personal tax rates
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Superannuation and employee entitlements
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Access to grants, incentives and subsidies
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Energy policy and environmental regulation
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Industrial relations and wages
Being across these changes early helps small business owners plan with confidence and adjust operations if needed.
2. What Are the Major Parties Proposing in 2025?
Australian Labor Party (ALP)
Labor’s 2025 campaign continues its focus on:
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Energy cost relief through extended small business rebates
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Increased investment in skills and apprenticeships
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More funding for cybersecurity programs targeting SMEs
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Maintaining current tax rates and superannuation increases
Liberal–National Coalition
The Coalition’s platform leans toward:
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A push for lower company tax rates for small businesses
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Cuts to red tape and regulation for start-ups
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Renewed support for entrepreneurship and innovation grants
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Encouragement of private investment in small business sectors
The Greens
The Greens are focusing on:
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Stronger climate policies, potentially affecting energy and transport
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New taxes for large corporations, while calling for increased small business support
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Greater investment in ethical and sustainable businesses
💡 Note: Party policies may change. Always check party platforms closer to election day.
3. What Issues Should Small Businesses Watch For?
As a small business owner, here are the areas where policy shifts could affect your bottom line.
✅ Tax Reform
Both major parties are under pressure to deliver relief to small business. This could mean:
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Raising the instant asset write-off threshold
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Adjusting PAYG withholding rates
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Changing thresholds for GST registration
✅ Employment and Superannuation
Minimum wage changes, super guarantee increases, and portable leave schemes may be on the table.
💡 Employers must stay informed to remain compliant—especially as super reaches 12% by mid-2025.
✅ Energy Costs
With electricity prices continuing to impact profitability, energy rebates, renewable investment programs, or green business incentives will be critical for small operators.
4. How to Prepare for Post-Election Business Changes
While you can’t predict the result, you can prepare your business to respond quickly:
🔹 Review your business structure
Are you a sole trader, trust or company? Depending on proposed tax rates, it might be time to restructure.
🔹 Assess your cash flow
If policy changes impact wages, super, or expenses, will your business stay in a healthy position?
🔹 Stay informed
Follow reputable sources like business.gov.au, the ATO, and media outlets like SmartCompany or ABC News for post-election updates.
🔹 Talk to a Penrith accountant
Local advisors understand how broader economic policy affects Western Sydney businesses specifically. A conversation now could save you time, stress, and money later.
5. The Importance of Advocacy and Voting
Remember, your voice matters. Engage with your local candidates:
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Ask how they plan to support small businesses in your region.
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Attend local forums or chambers of commerce events.
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Share your concerns about real issues: cash flow, workforce shortages, compliance burdens.
Most importantly, vote with your business in mind.
Conclusion
Whether you’re running a café in Penrith, an e-commerce site from home, or a trades business across Western Sydney, the 2025 federal election could reshape your business landscape.
Being proactive, understanding what’s at stake, and staying up to date will put you ahead of the curve—regardless of the outcome.
And remember: Carmody Accounting is here to support you, election year or not.
