25th March, 2025
The 2025-26 federal budget has landed, marking the Albanese Government’s final pitch before the upcoming election. While framed around cost-of-living support and social investment, mid-sized-level businesses should pay close attention to a number of strategic funding allocations, policy shifts and economic signals with the potential to shape decision-making over the year ahead.
While there were few standout measures targeting mid-sized businesses, this year’s budget outlines national priorities and hints at where the federal government sees future growth.
The budget included $20 million next financial year for a “Buy Australian” campaign to support local businesses by encouraging people to buy products made here.
Australia’s economic narrative has shifted from surplus to sustained deficit. After two years of better-than-expected revenue due to high commodity prices and strong employment, the Australian Treasury now forecasts structural deficits for the foreseeable future.
With inflation still a concern and interest rate cuts likely to be gradual, business leaders will need to navigate tighter margins and cautious consumer sentiment. Cost control, supply chain resilience and workforce productivity remain front of mind.
Labour shortages remain a persistent concern across sectors. While the budget focuses heavily on health and education staffing, there is clear emphasis on growing workforce capability across priority industries.
Notably, support is being directed toward:
For larger employers, this suggests alignment with government-backed training and workforce pipelines will be essential to access future talent.
One of the strategic signals in the budget is a $2 billion production credit scheme for green aluminium, designed to support decarbonisation and renewable manufacturing.
This is modelled on previous programs for solar panel and battery manufacturing, and forms part of a wider government push to support local production of clean technologies.
Businesses involved in sustainable manufacturing, carbon-reduction supply chains, and renewables infrastructure should see this as a clear policy cue. Further announcements tied to the Net Zero Industry Growth Plan are expected later this year.
Infrastructure remains a central pillar of the government’s economic strategy. The $7.2 billion Bruce Highway upgrade, co-funded with the Queensland Government, forms part of a broader pipeline of transport and logistics investment.
This is supported by targeted funding for regional connectivity, road safety, and urban infrastructure, which are elements likely to drive contract flow for civil, construction and services businesses.
Defence is a standout in this budget, with $10.6 billion in new funding allocated over the forward estimates. This includes:
These figures reinforce Canberra’s long-term commitment to industrial capability, AUKUS, and national security.
Large contractors, logistics providers, engineering firms and component manufacturers will find increased opportunities through government procurement and downstream partnerships.
This is a budget defined less by headline tax reform and more by long-term investment in capability.
There was no mention of the popular instant asset write-off scheme in the budget. New legislation will need to be enacted in order for the instant asset write-off threshold to remain at $20,000.
“We welcome the reinforced commitment to the instant asset write off for the current year,” MYOB CEO Paul Robson says. “We encourage the government to provide a consistent framework for this initiative for future years, in order to provide predictability for the business community.”
Business leaders should consider:
While this budget is not packed with short-term business sweeteners, it offers a clear roadmap of government priorities and provides businesses with a blueprint for alignment.
In the lead-up to the election, the challenge for businesses will be reading between the lines and positioning accordingly.
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