“The Budget lacks ambition and a thorough understanding of what business needs.”

Household cost-of-living measures were front and centre of Treasurer Jim Chalmers’ pre-election Budget tonight, but the government has failed to deliver initiatives that would improve business productivity, innovation and growth, according to the country’s peak accounting body.

“Businesses and their advisers will find little in the federal Budget that will help offset the pain all-too-many small businesses have been experiencing,” CPA Australia Chief Executive Officer Chris Freeland AM said.

“The Budget lacks ambition and a thorough understanding of what business needs. Not enough is being done to slash red tape or create the conditions and improve policy development that would shift the dial on Australian productivity and competitiveness."

Mr Freeland said new personal tax cuts from July 1, 2026, may capture the public’s attention but would fail to really help most Australians.

“SMEs – many of which have thin margins – needed a Budget that would significantly alleviate the cost pressures they face every day,” Mr Freeland said.

“The unrelenting rise in insurance premiums and the burden of utility bills, materials, wages, fuel and various other inflationary pressures are hard to manage.

“Though the emphasis on relieving pressures on household finances was expected, a more business-centric Budget would have benefitted all Australians because small businesses are significant contributors to the economy and job creation.

“The instant asset write-off is a prime example. Tonight, it should have been made permanent – but it remains in limbo. Making it permanent would provide the certainty and opportunity businesses need to invest and grow. They cannot make serious long-term financial decisions when the rules could change every year.”

Mr Freeland said the $150 energy bill relief would assist businesses in managing soaring costs, and a national licensing scheme for electricians might serve as a template for other as-yet unspecified occupations.

However, the Budget lacked support or incentives to help small businesses innovate and adopt new technologies. As research from CPA Australia released on Monday shows, Australian small businesses trail most countries in the Asia-Pacific region in these areas, and are ultimately less likely to experience growth.

“The business community expects the government and Opposition will announce measures during the upcoming election campaign that would significantly reform regulation, taxes and incentives,” Mr Freeland said.