Our Plan for Small and Family Business

Australia is a nation of small and family businesses, with over 2.5 million small businesses employing almost half of Australia’s workforce.

They are the local café, the regional tradie, the suburban hairdresser, the growing tech start-up, and the family-run farm. They create jobs, train apprentices, power innovation, and give back to their communities.

The Coalition has always backed Australia’s small and family businesses to grow, prosper and hire more Australians.

We believe in backing those who take a risk to build something of their own. That is why the Coalition has a proud record of cutting tax for small businesses. We delivered the lowest tax rate in 50 years, introduced the instant asset write-off and slashed red tape, because your time should be spent growing your business, not buried in bureaucracy.

But business conditions in Australia are collapsing under Labor.

The last year has been the worst on record for business insolvencies. Electricity prices for small businesses have risen by up to 52%. Borrowing costs for our small businesses have reached their highest levels in 16 years and inflation has been consistently higher than other advanced economies.

Labor’s industrial relations agenda – driven by union demands – has resulted in less flexibility and increased regulation for our small businesses.

These statistics reveal a complete failure by Labor to deliver an economic plan that supports small businesses to grow, thrive and create more jobs.

Albanese is the worst Prime Minister on record for insolvencies

Small and family businesses are being crushed under Labor’s cost-of-doing-business crisis. We value the contribution small businesses make, and believe their hard work should be rewarded.

A Dutton Coalition Government will back small business as the key driver of economic growth and security. We will be unashamedly pro small business, delivering reforms to help the small business sector grow and get back on track.

We will set a target to lift the number of small businesses by at least 350,000 over the next four years.

To achieve this, a Dutton Coalition Government will revive Australian entrepreneurialism by delivering:

• Lower taxes on small businesses to support investment, growth and new business creation.
• Better finance to make it easier for small businesses to get loans and pay off debts.
• Less red tape to reduce the costs of doing business, and lower costs for consumers.
• Cheaper energy for small businesses.
• Easier employment by supporting small businesses with simpler laws and incentives to find the staff and apprentices they need.
• A level playing field by giving small business a seat at the table and strengthening laws to ensure they get a fair go.

Only the Coalition has a plan to back small and family businesses: to grow jobs, cut costs and secure our future prosperity to get Australia back on track.

Our Plan

The Coalition has a comprehensive plan to rebuild small businesses and support a vibrant private sector economy.

This will grow our economy and create more jobs for Australians.

Australia’s 2.5 million small businesses are the lifeblood of our communities and the engine room of our economy.

Under Labor, Australia has experienced record business insolvencies and half of Australian business owners have thought about closing, according to the Australian Chamber of Commerce and Industry.

The Coalition will rebuild our small businesses and revive Australian entrepreneurialism as the heart of our positive plan to grow the economy and get Australia back on track.

The Coalition will deliver:

1. Lower taxes;
2. Better finance;
3. Less red tape;
4. Cheaper energy;
5. Easier employment; and
6. A level playing field.

1. Lower taxes

The Coalition will get our small and family businesses back on track by putting in place new tax incentives to set our small businesses up for growth, increase their competitiveness and provide immediate temporary relief from Labor’s homegrown cost-of-living crisis.

A Dutton Coalition Government will:

• Kickstart new Australian businesses: by incentivising newly incorporated businesses with a tapered, three-year Entrepreneurship Accelerator to reduce the tax on their first $200,000 of taxable income, supporting a new generation of entrepreneurs and setting businesses up for long term success.
• Deliver a permanent investment incentive for 98% of businesses: by making the instant asset write-off permanent and include assets up to $30,000 for firms with an annual turnover up to $10 million.
• Simplify FBT compliance to save time, retain staff, and boost our struggling hospitality industry: for the first two years of a Dutton Coalition Government, a capped tax deduction of $20,000 on business-related meal expenses will be available and exempt from Fringe Benefits Tax for firms with an annual turnover up to $10 million.
• Boost productivity by incentivising tech upgrades: for the first two years of a Dutton Coalition Government, eligible tech spends exceeding $4,000 will be eligible for a bonus tax deduction of $2,000 for firms with an annual turnover up to $10 million.

Our Plan To Revive Our Hospitality Sector

Australia’s hospitality businesses are struggling under rising prices for supplies, increasing labour costs and higher taxes.

Our hospitality sector plays a vital role in our economy – over 90% of businesses in the sector are small businesses. For many Australians, their first job or first business is in the hospitality industry.

The Coalition has a comprehensive plan to ensure our hospitality industry recovers from Labor’s cost-of-doing-business crisis, and continues to thrive. We will:

• Allow small businesses to claim a deduction of up to $20,000 for business-related meal expenses (excluding alcohol), for two years.
• Freeze alcohol indexation on tap beer for two years.
• Increase the remission cap for brewers, distillers, and wineries to $400,000.

The current structure of the FBT means a small business employer cannot take their staff to a hotel, bar or restaurant at the end of the week without the business and worker also being hit with additional taxes.

The current structure also unfairly benefits big businesses – by allowing them to claim fully catered in-house boardroom lunches and baristas – something a family-owned business and their workers don’t have the privilege of doing.

The Coalition will rebuild confidence in the hospitality sector by investing $243 million to enable firms, for two years, to claim a tax deduction for business-related meal expenses.

Entrepreneurship Accelerator

The Coalition will launch an Entrepreneurship Accelerator, at a cost of $214 million, to support newly incorporated businesses in their critical early years.

Under the Accelerator, start-ups will receive a tapered reduction in tax on their first $200,000 of taxable income over three years, easing the financial burden on new entrepreneurs and rewarding those who take the risk to build a business of their own.

This targeted support will reduce the cost of starting a business and encourage more Australians to have a go.

International evidence, including from Singapore, shows similar policies can double the number of new business starts and give them a stronger chance of long-term success.

The Entrepreneurship Accelerator will anchor our plan to back small business, revive Australian entrepreneurialism, and grow a vibrant private sector economy.

Tech Booster

The Coalition will get small businesses back on track with Tech Booster, a practical, targeted tax deduction to help small businesses invest in the digital tools they need to grow, compete, and thrive.

Under Tech Booster, small businesses can claim $2,000 in a bonus tax deduction for eligible technology investment over $4,000.

Eligible investments include: digitally enabling tech (e.g. connectivity tools like Starlink), digital media and marketing (e.g. websites and CRMs), eCommerce tools (e.g. modern point-of-sale systems) and cyber security (e.g. training and monitoring systems).

This will support small businesses to invest in productivity-enhancing capabilities that secure their businesses and improve their profitability.

Together, this comprehensive suite of measures will lower the tax burden on Australia’s small businesses by almost $2.9 billion – on top of savings from the Coalition’s halving of the fuel excise for 12 months, and scrapping of Labor’s tax on family cars and utes.

2. Better Finance

The Coalition will deliver stronger policy settings to support small businesses’ access to finance to ensure they can borrow, invest, and grow their businesses. We will repair the budget and slash wasteful spending, putting downward pressure on inflation and lowering interest rates on small business loans.

A Dutton Coalition Government will:

• Make it easier for banks to lend to small businesses: We will work with the  Australian Prudential Regulation Authority (APRA) to set clear rules to support small business lending, and encourage banks to lend more to small businesses, getting cash flowing when and where it’s needed.
• Support small businesses to grow: By lifting and indexing our venture capital and early‑stage tax breaks, we’ll open the door for more investors to back Australian startups and help small businesses scale-up.
• Easier switching and better products: We will make it easier for businesses to switch banks, telcos, and energy providers by accelerating open banking through the Consumer Data Right.
• Restore financial and tax advice networks: Accountants and financial advisers are the backbone of our small business community. We’ll cut red tape so every business owner can easily access top‑quality financial and tax advice to plan for the future.

Growing Small and Family Businesses

The Coalition will help Australian small businesses grow and drive Australian job creation by increasing their ability to attract investment from private markets and expand their businesses.

The Coalition will double the Early‑Stage Venture Capital cap to $100 million and lift the Venture Capital cap to $500 million. From July 2026, both limits will rise with CPI, so they never fall behind inflation.

Bigger, indexed caps give family owners room to grow. They can secure larger funding rounds without selling early or moving offshore. Jobs, profits and know‑how stay in Australia.

The reforms ensure more Australian businesses will stay in Australia, creating local jobs and opportunities instead of being lost to overseas markets.

3. Less Red Tape

The Coalition will cut red tape, reduce the cost of doing business, and give small businesses a powerful voice in government. The Coalition will: 

• Deliver a small business-friendly payments plan: We will work with the RBA to introduce a digital alternative to cash with no hidden fees, and enforce least-cost routing, so that small businesses and consumers don’t face surprise surcharges.
• Establish a Cabinet-level deregulation taskforce: We will create a Small Business Deregulation Taskforce to cut red tape, streamline processes and make interactions with government faster and easier. 
• Cut red tape in finance, construction and energy: We will establish Investment Australia to drive down costs around our enabling sectors. The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) will work alongside Investment Australia to ensure small business outcomes are at the heart of our red tape reduction strategy.
• Streamline corporations law: Australia’s corporations law is confusing, complex and too long, which is harming our economy. These costs are passed on to Australia’s 2.5 million small businesses and their consumers. The Coalition will immediately set to work with ASIC to progressively simplify the Corporations Act.
• Remove barriers to starting a business: The Coalition will task the ASBFEO to develop ways to simplify the process to start and grow a business.

Our Better Plan On Surcharging

Australians and businesses are struggling with rising costs in front of and behind the checkout.

The Coalition will deliver a better plan that addresses both sides of the issue: delivering cheaper payments for small and family businesses and action on surcharging for consumers, without imposing new costs.

The Coalition will reduce payment costs for small businesses by mandating default least cost routing, and we will mandate a digital non-surcharge option at the checkout so Australians will always have an option to avoid surcharges.

The Coalition will work with regulators and industry to prioritise the reduction of payment costs for small and family businesses and their customers.

4. Cheaper Energy

Under Labor, Australians are paying amongst the highest energy prices in the world.

Labor promised household electricity bills would fall by $275 by 2025.

Instead, electricity prices have risen 32%, up to $1,300 a year more than Labor promised.

Labor promised small businesses their energy bills would fall 18% by 2025.

Instead, small business electricity prices have risen by up to 52%, and gas prices have increased by up to 43%.

Concerningly, there are reports 1 in 5 small businesses are struggling to pay their energy bills on time, and nearly half are concerned about their ability to pay future energy bills.

Australians can’t afford Labor’s ideological renewables-only approach. 

Only the Coalition has a plan to drive down energy prices and deliver energy security, while ensuring we meet our commitment to net zero by 2050. 

The Coalition will deliver a balanced energy mix – more renewables, more gas and, in seven locations, zero emissions nuclear to replace retiring coal plants. This will be 44% cheaper than Labor’s reckless renewables-only plan, saving Australian families and businesses $263 billion through to 2050.

Our National Gas Plan will unlock more Australian natural gas, prioritise Australian gas for Australians, and get it to where it’s needed.

The Coalition will achieve lower and more stable prices for gas and electricity in the near term by:

• Establishing an East Coast Gas Reservation;
• Decoupling our gas market from high prices overseas;
• Unlocking supply of natural gas and pouring more into the domestic market, including through our $300 million Strategic Basin Plan; and
• Getting natural gas to where it’s needed, when it’s needed, through our $1 billion Critical Gas Infrastructure Fund.

Independent modelling estimates that the Coalition’s suite of policies will lower wholesale gas prices by 23% on average, and, as an increasing volume of new gas sales are made, progressively lower prices by:

• 15% for typical industrial gas consumers (like manufacturers)
• 7% for typical household gas bills
• 8% for wholesale electricity prices
• 3% for typical household electricity bills

5. Easier Employment

The Coalition will make it easier for small businesses to find the staff they need, and for sole traders to take the leap to employ Australians.

The Coalition will deliver more jobs, simpler laws, and more apprentices by:

• Supporting pensioners and veterans to work more hours without losing their payments by doubling the Work Bonus, giving small businesses access to a skilled and reliable workforce.
• Encouraging small and medium businesses to take on apprentices, by providing wage incentives to assist with the costs of putting on and training a new apprentice or trainee. This is in addition to direct support for apprentices to complete their training under the Key Apprenticeship Program.
• Increasing the hours student visa holders can work by 12 hours a fortnight.
• Strengthening the enforcement of mutual obligation requirements for job seekers so that those receiving an unemployment benefit are looking for work or undertaking training. This will ensure Australians who have left the workforce since Labor came to office have a strong incentive to return to work.
• Restoring the statutory definition of a casual worker, ensuring businesses have the confidence to employ Australians without the risk of union action.
• Repealing Labor’s misleading ‘right to disconnect’ law which can result in small business owners or employees being fined $18,000 just for contacting a fellow employee outside of working hours. This will restore flexibility for small businesses and their employees.

Helping businesses create more apprentices and trainees   

The Coalition will invest over $500 million to provide small and medium businesses with $12,000 to support the wages of eligible new apprentices and trainees taking up training in areas of skills shortage for the first two years of their training. This is around 10% of wage costs.

Hiring an apprentice or trainee is an investment, but many businesses, especially small and medium businesses struggle with the upfront costs of wages and training. We will help offset these costs, giving businesses the confidence to take on new apprentices.

This Apprentice and Trainee Wage Support will enable around 40,000 new apprentices and trainees each year to take up training in critical skills and occupations like carpenters, plumbers, bricklayers, electricians, aged care and disability support, chefs, sheet metal workers and welders.

6.  A Level Playing Field

The Coalition will level the playing field for small and family businesses through strong competition policy, restoring law and order in our construction industry, and giving small businesses a powerful voice in government. The Coalition will: 

• Strengthen the role and voice of the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), restoring the funding slashed by Labor and tasking ASBFEO to undertake performance reviews of how government agencies deal with small businesses.
• Restore law and order on our worksites by bringing back the Australian Building and Construction Commission to enforce the law and put an end to union corruption on construction sites, which will help lower construction costs.
• Prevent arrangements that give unions the right to veto businesses freedom to decide which other businesses they engage with, including suppliers, subcontractors and independent contractors.
• Keep supermarkets from exploiting suppliers and consumers through new competition policy, including divestiture powers as a last resort.
• Strengthen unfair contract terms for small businesses, levelling the playing field between big and small businesses.

The Choice

Australia’s small and family businesses are the lifeblood of the economy, but under Labor they are drowning under higher costs, higher interest rates, higher taxes, and more red tape.

Labor wants to pretend that the economy has turned a corner. But small businesses and workers know Labor has wrecked the economy for small businesses.

Labor does not support enterprise, aspiration or small business. They have no understanding of, or empathy with, the pressures of running a small business.

Under Labor, inflation has been consistently higher than other advanced economies. This has made it harder than ever for Australian small and family businesses to stay afloat.

Last year, Australia had the highest number of small business insolvencies on record. Over 30,000 businesses have closed their doors under Labor’s cost-of-doing-business crisis.

For every one of those shuttered businesses, there exists a broken dream of building something more for loved ones and countless opportunities destroyed for young Australians looking to get ahead by working hard and making their own dreams a reality.

Australians simply can’t afford another three years of Labor.

Our plan for a strong economy for all Australians relies on strong small businesses. We will invest over $4.6 billion to support local jobs and rebuild small businesses after years of rising costs under Labor.

This includes almost $2.9 billion in lower taxes for small and family businesses over four years.

This assistance is on top of the support for small businesses from the Coalition’s halving of fuel excise for 12 months and scrapping of Labor’s tax on family cars and utes.

Only a Dutton Coalition Government will get Australian small and family businesses back on track.