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The party has released further details on its plans for small and family businesses, including a tapered tax offset for new businesses and a $2,000 tax deduction for technology upgrades.
Coalition unveils new tax incentives as part of small business package
23 April 2025
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8 minute read
Taxation continues to be a major policy battleground for the upcoming election, with the Coalition announcing further tax incentives for small businesses on the weekend.
The Coalition released its ‘Plan for Small and Family Business’ on Saturday (18 April), which will aim to create 350,000 small businesses over four years.
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The plan includes two new tax incentives, including an 'Entrepreneurship Accelerator' which would aim to support newly incorporated businesses for their first three years of operation. This would operate as a tapered tax offset, starting at 75 per cent of the business's first $100,000 of taxable income, and 50 per cent of their second $100,000 of income in their first year of operation.
Opposition Leader Peter Dutton said the measure "would support more Australians to take the risk and back themselves to start a business, and support businesses through their early years".
The Coalition also plans to provide a tax deduction of $2,000 for tech upgrades for small businesses under its ‘Tech Booster’ measure. This would apply to eligible technology investments over $4,000, it said, and would help small businesses to invest in the digital tools needed to grow.
Eligible investments under the measure would include digitally enabling tech, digital media and marketing, e-commerce tools and cyber security.
These latest measures follow other tax incentives announced by both major parties last week, including Labor's $1,000 standard tax deduction and the Coalition's plans to allow first home buyers to claim a tax deduction on mortgage interest payments for newly built homes.
Dutton said the Coalition’s policies would "offer immediate relief" and also support small and family businesses to grow and create jobs in the future.
The Council of Small Business Organisations Australia said the newly announced tax incentives, combined with the permanent instant asset write-off threshold and $20,000 meal and entertainment tax deduction, offered some "positive and tangible support" for the small business sector.
Luke Achterstraat, chief executive of COSBOA, said the Entrepreneurship Accelerator and Tech Boost would provide real incentives for early-stage businesses and those seeking to upgrade their digital assets.
Achterstraat also welcomed the commitment by the Coalition to enhance the role of the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and the creation of a Small Business Deregulation Taskforce in Cabinet.
However, Achterstraat warned that removing red tape would require more than rhetoric.
"It needs a concerted effort and coordination between key portfolios. It is vital this taskforce engages with industry and is ambitious in its agenda," he said.
COSBOA said the Coalition's focus on payment, competition, skills and employment was also welcomed.
“A direct incentive of $12,000 for small business to hire apprentices in shortage areas is sensible, as is returning to a clearer definition of casual employment," Achterstraat said.
However, Achterstraat added that an opportunity still existed to commit to "game-changing tax reform and productivity-improving initiatives".
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