The Liberal-National Coalition has proposed a set of tax offsets aimed at encouraging entrepreneurship and expanding Australia’s small business sector, setting a goal to add 350,000 new small businesses within four years if elected.
The plan is structured to reduce the financial burden faced by start-ups during their early years, allowing them to reinvest in growth rather than face immediate full tax obligations.
According to ABC News, the initiative forms part of a broader economic strategy designed to foster innovation, support job creation and stimulate long-term productivity across the country’s business landscape by offering targeted support to the nation’s most agile enterprises.
Phased Tax Relief Under ‘Entrepreneurship Accelerator’
A central feature of the proposal is a new scheme titled the Entrepreneurship Accelerator, which would provide tax offsets to newly incorporated small business entities during their first three years of operation. The Coalition said the policy is designed to allow start-ups to reinvest early revenue and scale sustainably.
Under the proposal :
- Year one : Tax would apply to 25% of the first AUD 100,000 in income and 50% of the second AUD 100,000.
- Year two : Taxable portions would rise to 40% for the first AUD 100,000 and 60% for the next.
- Year three : Companies would pay tax on 50% of the first AUD 100,000 and 70% of the second.
Eligibility is restricted to businesses with :
- Fewer than 20 employees
- Annual turnover under AUD 10 million
- Incorporation in Australia
- A maximum of 20 shareholders, with at least one holding more than 10%
Companies involved in investment holding and property development would be excluded from the tax offsets.
Liberal Campaign Highlights Early-Stage Support
Opposition Leader Peter Dutton presented the proposal as a confidence-building measure for entrepreneurs and small business operators.
“Our policies offer immediate relief, as well as measures to support small and family business to grow and create jobs in the future,” he said.
“Today, I say to small business owners and employees, help is on its way,” he added.
The Coalition emphasized that the goal is to help Australians feel more confident taking business risks and participating in economic activity. Dutton further stated the initiative would “restore confidence, save time and cut costs.”
Tax Write-Offs For Digital Capability
Alongside the Entrepreneurship Accelerator, the Coalition is proposing a digital technology incentive that would allow all small business operators — not only start-ups — to claim a AUD 2,000 tax deduction for technology upgrades worth at least AUD 4,000.
Eligible upgrades include:
- E-commerce platforms
- Software and hardware
- Cybersecurity enhancements
- Digital marketing tools
The aim is to help small business entities modernize operations and become more competitive in a digitized economy through targeted tax offsets.
Budget Impact And Campaign Shifts
Together, the Entrepreneurship Accelerator and digital investment incentive are projected to cost AUD 330 million over four years.
Another measure previously announced — a tax-free staff meal policy of up to AUD 20,000 for small and medium enterprises — has seen limited promotion during the campaign. Internal party sources suggested the proposal has been quietly dropped to maintain focus on the cost of living.
Labor Moves To Protect Penalty Rates
While the Coalition focuses on tax offsets and entrepreneurship, the Labor Party is advancing legislation to secure penalty rates for workers employed under awards.
The move comes in response to a proposal from the Australian Retailers Association, which would allow employees to opt out of penalty rates, overtime, allowances and roster rules in exchange for a 25% base pay increase.
Labor has opposed the suggestion, arguing it could leave some workers thousands of dollars worse off. The federal government has also intervened in the Fair Work Commission review process to express its concerns.
Employment and Workplace Relations Minister Murray Watt affirmed the government’s position :
“We will introduce legislation to ensure workers don’t have their pay cut and their penalty rates are protected into the future,” he said.
Approximately 3 million Australians are employed under award conditions that set minimum wages and entitlements.
