What Labor's election win means for Australian SMEs

With Labor’s recent election victory, SMEs across Australia can expect a wave of new policies, investments, and opportunities. In today’s article, we break down the key measures business owners should know about, from the extended $20,000 instant asset write-off to the $20 million Australian Made investment, Advanced Entry Trades Training program, and more [1].

$20,000 instant asset write-off extended by 12 months

One of the biggest updates for SMEs in the 2025 federal budget was the expected drop in the instant asset write-off (IAWO) threshold from $20,000 to just $1,000, which was set to start from July 1, 2025.

However, with Labor’s win, the $20,000 IAWO has been extended for another 12 months. This means that, if eligible, you can claim immediate deductions on the full cost of eligible depreciating assets in the year you first use or install them. The $20,000 threshold applies on a per-asset basis, so you can benefit from instantly writing off multiple assets [2].

$20 million Australian Made investment

In an effort to encourage consumers to buy locally made products, Labor is making a $20 million Australian Made investment, which will be used to launch a new campaign spotlighting the economic benefits of buying Australian; support more local producers to secure Australian Made certification; and improve the online Made in Australia directory, so it’s easier for shoppers to find local products.

For SMEs, this investment can bring greater visibility and opportunities for growth. With more consumer attention on buying Australian, small businesses have a better chance to strengthen their brand recognition and tap into local demand.

$54 million investment to speed up construction

Labor is investing $54 million in advanced manufacturing of prefabricated and modular home construction, with the primary goal of boosting supply for those looking to buy property. This measure doesn’t just impact renters and first-time buyers; it also opens new opportunities for business owners, particularly in construction and manufacturing:

• Increased demand for prefabricated components like walls, flooring, and roofing materials
• Faster project turnaround and opportunity for more contracts, due to the shorter project timelines
• Access to new markets in regional or remote areas, where traditional construction methods may be cost-prohibitive or logistically challenging
• An influx of talent and skilled workers

Free TAFE becomes permanent

As part of their education commitments, Labor plans to make TAFE permanently free so more Australians can gain practical skills and improve their job prospects. For SMEs, this creates a larger pool of trained, work-ready candidates to draw from across a range of sectors from trades and manufacturing to hospitality, healthcare, and more. This measure will also help upskill existing staff so small businesses can stay competitive and meet changing market demands.

Fast-tracked qualification of 6,000 tradies

Labor is committing $78 million to fast-track the qualification of 6,000 tradies to help build more homes in Australia, with the Advanced Entry Trades Training program set to start in 2026. For SMEs in construction, this means access to more skilled professionals, which in turn will reduce project delays caused by labour shortages, as well as increase overall productivity. 

This program also presents a valuable opportunity for business owners to upskill their team without having to draw from the business’s own training budgets, leaving more resources available to allocate to other key areas of growth and operations.

Additional $150 in Energy Relief

Labor is providing a $150 Energy Bill Relief to around one million businesses. Although this is a modest amount, it helps reduce one of the main operating expenses SMEs face—energy bills—and frees up an additional $150 to invest elsewhere, like in inventory or debt repayments.

$2.3 billion Cheaper Home Batteries Program

Labor will roll out a $2.3 billion Cheaper Home Batteries Program from 1 July 2025 and cut the cost of a typical installed battery by 30%. Although the program is focused on households, it will also have indirect impacts on SMEs.

In particular, sole traders or small business owners who operate from home can cut their energy costs and potentially save thousands of dollars per year. Additionally, with the surge in demand for solar batteries, solar companies, battery installation businesses, and electricians stand to gain more contracts and expansion opportunities.

Unlock growth with the right funding

Each of these government measures opens doors for SMEs—whether it’s expanding into new markets, hiring skilled staff, or taking advantage of rising demand in sectors like manufacturing and construction. But seizing these opportunities often takes capital, and that’s exactly where Valiant comes in.

Simply tell us a bit about your business loan needs and immediately receive quotes from over 90 bank and non-bank lenders. Confirm your quote and we handle your business loan approval so you can focus on what matters—your business. Ready to move forward? Get a free, no-obligation quote today.

References

1. https://alp.org.au/policies 
2. https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off