Australian business lobby groups have issued a wish list ahead of the federal Budget, pushing hard for tax relief, regulatory reform and cash flow support amid fragile economic conditions.
Organisations including the Council of Small Business Organisations Australia, the Australian Chamber of Commerce and Industry, the Business Council of Australia and sector-based associations have released pre-Budget submissions with a common thread: SMEs want spending restraint over new programs, lower compliance costs and greater certainty on investment settings.
With persistent inflation, climbing energy costs and global trade disruptions adding pressure to small business bottom lines, the groups hope the 2026-27 Budget will deliver meaningful relief and reform.
Businesses Want Practical Help With Assets And Advice
Among the most prominent Budget requests is the call to make the Instant Asset Write-Off permanent and raise the threshold significantly.
The measure currently allows small business owners to immediately deduct the cost of eligible assets rather than depreciating them over several years. For a tradie purchasing a new vehicle or a café owner upgrading kitchen equipment, the write-off can significantly reduce a tax bill in the year of purchase.
But business groups point out that the threshold and availability of the write-offs have been subject to near-annual changes, making long-term planning difficult. They argue that locking in a permanent, higher threshold would give SMEs the confidence to invest without waiting for last-minute Budget announcements. The Housing Industry Association and Master Builders Australia want the asset write-off threshold increased to $50,000 and $150,000 respectively, to boost productivity and investment in the construction sector.
Among smaller but still significant suggestions, COSBOA has proposed a $3,000 professional advice voucher to help SMEs access financial guidance during critical growth phases. “Many small businesses don’t have the capacity to navigate financial pressure alone and delay seeking advice because of cost, even when they need it most,” says COSBOA CEO Skye Cappuccio. “A targeted voucher to access a qualified service provider would help certain businesses manage cashflow, make informed decisions and remain viable. This is about giving small businesses the tools and advice they need before challenges become crises.”
There are also calls from CPA Australia to simplify Fringe Benefits Tax arrangements and for the abolition of ASIC search fees, both of which add cost and complexity for businesses with limited back-office resources.
Calls To Rescue SMEs From $160 Billion In Red Tape
Estimated federal regulatory costs of $160 billion represent one of the most persistent drags on SME productivity and are a key focus of pre-Budget submissions. Nearly 30 industry groups have backed a campaign to reduce that figure by 25 per cent by 2030. They cite research suggesting the average small business spends roughly one day per week on compliance and administrative tasks, including from managing BAS and tax reporting, navigating awards and pay requirements, renewing licences and permits, maintaining insurance documentation and meeting data and privacy requirements. They argue that time would be better spent serving customers, managing staff or growing revenue.
CPA Australia’s submission includes two specific proposals designed to address the problem. The first is a “Fix-it Squads” model, where cross-agency teams would be deployed to identify and resolve regulatory bottlenecks affecting specific industries. The second is a Small Business Simplicity Index, a benchmarking tool that would measure and publicly track the regulatory burden on small businesses over time.
“The May Budget must turn the announcements from last year’s Productivity Roundtable into concrete reforms that make it easier to do business, attract investment and build long-term economic resilience,” says Gavan Ord, CPA Australia’s Business Investment and International Lead. “We’re drowning businesses in red tape and then wondering why productivity is flat. Australia has a productivity problem, not a motivation problem. Business is willing – it is the system that is getting in the way.” ACCI has suggested a ‘tell-us-once’ principle across regulatory regimes, to minimise unnecessary duplication in reporting to multiple government agencies.
Business Council CEO Bran Black says the timing of the Budget is crucial. “When global shocks hit, Australians pay higher prices through household bills and everyday costs, so it’s vital we control what we can control and ease pressure on households through new productivity measures,” Mr Black says. “This Budget should include reduced spending to curb inflation, significant reductions in red tape and tax changes which drive investment and lift living standards.”
Calls To Address Workforce Pressures And Skills Shortages
Beyond tax and compliance, workforce constraints remain a dominant theme in pre-Budget advocacy. The Business Council wants to see changes to enterprise bargaining, to ensure it only commences with majority employee support, as well as more flexible arrangements for labour hire, independent contracting and casual work.
Several submissions call for expanded apprenticeship funding, particularly in sectors like construction where Master Builders Australia has warned that building approval bottlenecks are compounding existing labour shortages. “Governments must focus on policies that encourage investment, cut unnecessary red tape, grow the construction workforce and deliver enabling infrastructure,” says Master Builder CEO Denita Wawn. The National Farmers Federation is also pushing for apprenticeship funding, plus incentives to develop accommodation for farm workers.
There are also calls for dedicated programs for AI and digital upskilling. The Business Council wants to see the Future Skills Organisation and the National AI Centre appropriately funded to develop high-quality AI and digital training resources for the existing workforce. It’s also pushing for a free or low-cost cyber standard to help small and mediumsized enterprises with cybersecurity during the AI adoption phase.
ACCI CEO Innes Willox hopes the Budget will strike a balance between future proofing and meeting immediate challenges. “There is little room for error between the short-term pressures of the energy crisis and our long-term need for structural repair to compete in a world that is changing at warp speed, he says. “The federal Budget must find resources for the former while laying the groundwork for the latter.”
