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The Federal election has heralded some new policy directions that Business operators, SMEs, advisors and high-net-worth families need to note and understand.  

Tax reform: this topic, despite much political discourse, seems to be a long-term debate rather than offering any immediate changes. Issues also, such as tackling state taxes, GST, or the complex system, are conversations that remain in the background.  For now, it’s Business as usual. Businesses should take advantage of any already scheduled tax cuts and meet compliance with existing obligations. 

Superannuation: The re-elected Government is moving ahead with its plan to increase taxes on large super balances. The reform is not yet law, but the proposed legislation will take effect from July 1, 2025. If passed earnings on individual super fund balances above $3mil will attract a higher tax rate. Effectively 30%, up from the standard 15% in accumulation phase. Watch this space!

For most Australians superannuation policies and fundamentals remain the same and continue to provide generous tax benefits. 

Support for SMEs (small and medium sized Business) hasn’t been overlooked. 

• Energy bill rebates: From July 1, eligible small Businesses are set to receive a $150 rebate as part of a wider cost of living relief package. 

• Battery installation subsidy: a 30% subsidy on battery installation systems will be available to help Businesses improve sustainability and manage electricity bills. 

• Excise freeze: From August 2025, draft beer excise will be frozen supporting small brewers and hospitality Businesses. 

   

• Phoenix crackdown: The ATO and ASIC have received a combined $365m to improve enforcement mechanisms and backend systems, including a boost to the Director ID Program. This step is to help stop illegal phoenix activity and protect honest operators. 

• Instant Asset write-off finishing 30 June 2025: The government has extended the instant asset write-off to 30 June 2025 for assets costing less than $20,000. 

Other:

Non-compete clause ban: a proposed plan, framed by Treasurer Chalmers, to scrap non-compete clauses for workers earning under $175,000. The pro-entrepreneurship policy has received mixed responses from Business sectors particularly those where staff retention is already difficult. 

Buy Australian campaign: A new $20mil consumer faced campaign aiming to encourage buyers to shop and support local Business. More details are to come as to how the funds will be used. 

Going Forward 

Owning, running and managing a SME Business presents many challenges.  Smart operators will look to explore and optimise financial strategies, take advantage of offered incentives and manage risk.

Blackburn Accounting understands the complexities and is well placed to help translate and implement post-election outcomes. 

We are your family Business specialists offering a range of services, including; Tax Planning, Superannuation strategy, accessing Grants & Incentives opportunities and requirements and being compliance ready. Contact us today.