Impact on business

Australia is not immune to a volatile world of Trump trade barriers, the worst oil shock since the 1970s, and grappling with a significant inflation challenge. The Treasurer went to great pains to point out the current headwinds facing the Australian economy and, by extension, the Australian business community.

The 2026 Budget provides modest but practical measures to assist business during this period of turbulence. It seeks to simplify tax and compliance costs, incentivise innovation and boost productivity.

The Treasurer outlined the following measures to support small and medium businesses:

• The $20,000 instant asset write-off for small business will be made permanent. It will benefit businesses with a turnover of less than $10 million.
• Loss-making businesses will be able to claim a tax refund against the previous two income years.
  The $150 million cap on research and development tax credits has been lifted.
• $1 billion in interest-free loans has been allocated for manufacturing and logistics businesses.
• Removal of the $1,600 fee to access mandatory Australian Standards for construction.
  Small start-ups are to receive a refundable tax offset.
• Climate-related financial disclosure requirements have been simplified in a bid to reduce red tape.

All Treasurers argue that each budget they deliver supports the business community — particularly small and medium businesses. As always, the proof will be in the pudding.

But the bottom line for business is that, although no bold or earth-shattering announcements were made, none of the measures announced will go unwelcomed.