Cost-of-living measures and modest support for business were the hallmarks of the 2025-26 Federal Budget, which highlighted some sobering insights for the nation’s finances ahead of the Federal Election on May 3.
The Budget forecasts a deficit of $42.1 billion for the coming financial year, and gross debt will now surpass $1 trillion for the first time next financial year. 
CCIWA Chief Economist Aaron Morey said the budget bottom line is clearly showing signs of stress.
“The underlying cash balance weakened by $66.7 billion over the forward estimates, which was driven by softening revenue growth and an increase in spending commitments,” he said.
“At the same time debt is growing and becoming more expensive to service, although the nation’s debt levels still remain manageable.
“The best way to navigate out of fiscal challenges is through economic growth. That means the conditions must be right to grow productivity and encourage investment.”
The key budget measures impacting WA business include:
- A $150 electricity bill rebate for about 1 million small businesses. The rebate will be applied automatically based on annual energy usage, with electricity retailers able to confirm whether a business is eligible.
- Disappointingly, the instant asset write-off scheme will be slashed from $20,000 to $1,000 from July 1.
- Energy efficiency grants of up to $25,000 for small and medium sized businesses will continue.
- $20 million to encourage consumers to buy Australian-made goods to offset any damage from US tariffs.
- Reforms to the alcohol excise will provide some relief for local brewers and distillers who have been squeezed by rising costs.
- Introduction of a national licensing scheme for electricians, making it easier for qualified tradies to move to WA to meet growing demand.
- Doubling incentives for eligible apprentices in the building industry to encourage more people into trades.
- $1b in defence spending brought forward, with funding to flow to AUKUS projects in WA.
Morey said moves to curtail the use of non-compete clauses for employees earning less than $175,00 would alarm many Australian businesses.
“This measure will make it harder for businesses to protect their legitimate interests by ensuring workers do not unfairly use insider knowledge to help a new employer,” he said.
Disappointingly, the instant asset write-off scheme will not be extended beyond July 1, 2025, meaning the current threshold of $20,000 will drop to $1,000.
“This allowed SMEs to write off investments in equipment up to $20,000. We’re calling on the Government to bring that back in because that’s important for WA,” Morey said.
National licensing scheme for electricians
CCIWA welcomed the decision to introduce a national licensing scheme for electricians, which would make it easier for WA to lure qualified tradies from the East Coast.
The doubling of incentives for apprentices in the housing and construction trades, from $5,000 to $10,000, would help to tackle the skills shortages that have contributed to Australia’s housing crisis.
“This highlights the need to ensure that industry is also supported with strong incentives to take on apprentices in areas of critical need for our economy,” Morey said.
Around a million small businesses would welcome the $150 electricity bill rebate, which is also being extended to every Australian household.
“This will deliver some much-needed relief for businesses and households, and it’s unlikely to have detrimental effect on inflation,” Morey said.
“Utilities costs are a key pressure point for small and family businesses, so while this is a relatively modest measure, it’s good to see the Federal Government recognise these cost pressures by continuing to offer rebates.”
‘Buy Australia’ plan welcome
CCIWA welcomed the $20 million spend on the “Buy Australia” plan, to help boost local manufacturing in the face of tariffs introduced by US President Donald Trump.
“The budget papers noted the risks posed by US tariffs could weigh on global growth and drive higher import prices, higher inflation and slower growth,” Morey said.
“It was also encouraging to see some modest funding to boost Australia’s trade diversification agenda, with $16 million going towards an Australia-India Trade and Investment Accelerator Fund.”
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