Coalition’s Budget Response

Apr 10, 2025 | 25-26 Federal Budget, Energy Efficiency for Business, Instant Asset Write Off, Small Business

Coalition Budget Response May 2025

My Take on the Coalition’s Budget Reply – What It Could Mean for Your Business

The Albanese Government delivered its Federal Budget on 26 March, and while there wasn’t much in it for small businesses—beyond extended energy relief – the Coalition’s Budget Reply the following day caught my eye.

Why? Because with the Federal Election now set for 5 May 2025, both the Budget and the Budget Reply carry more weight than usual. They don’t just outline numbers; they show us how each party plans to steer the economy – and that includes how they’ll support (or not support) your business.

So, here’s what stood out to me from Peter Dutton’s Coalition Budget Reply and what it could mean for you:

📈 Instant Asset Write-Off Boost

The Coalition says they’ll lift the instant asset write-off from $1,000 to $30,000 – and make that permanent. If you’re thinking of upgrading equipment or investing in tools, this could mean immediate tax deductions instead of long wait times for depreciation benefits.

🍽 Business Meal Deductions – Up to $20,000

They’ve proposed a $20,000 annual deduction for business-related meals. Yep, that includes client lunches and team dinners. While some say it’s a “free lunch” for execs, I see it as a way to reward staff and support hospitality businesses.

🛠 Apprenticeship Incentives Are Back

They plan to reintroduce incentive payments -$12,000 per apprentice or trainee. If you’re in construction or a skill-shortage area, this could help you grow your team without taking on the full financial hit yourself.

🧾 Cutting Red Tape

The Coalition wants to reduce duplication across local, state, and federal levels. Less red tape = less time spent chasing compliance and more time focusing on clients and cash flow.

⚡ Tackling Energy Prices

They’re proposing a national gas plan to bring down gas prices and continue pushing for nuclear energy. Whether or not that’s realistic, cheaper utilities are always a plus for overheads.

⛽ Halving Fuel Excise

This one’s simple – half fuel excise for 12 months. For businesses using fleets, couriers, or tradie vans, that’s a direct saving at the pump.

Need Help Navigating These Changes?

If the potential change in government has you wondering what it all means for your business – let’s chat.

I can walk you through the policies that matter, figure out what applies to your industry, and help you plan for the short and medium term – no jargon, just real advice.

📞 Give us a call on 4926 4155 or shoot us an email at admin@tspaccountants.com.au – I’m here to help.

Deidre Molloy | BCom, CA
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