COSBOA calls for a budget that works for small business, not against it
As the Federal Government prepares to unveil the 2025-26 Budget, the Council of Small Business Organisations Australia (COSBOA) is calling for a budget that prioritises small business, warning that failure to act will put Australia’s economic engine at risk of stalling.
With small businesses driving employment, competition, and innovation, COSBOA asks the Government for bold action in tax reform, red tape reduction, and greater support for employers struggling with rising costs and regulatory pressures.
“A small business-led recovery is the only way to strengthen the economy, create jobs, and ensure Australia remains globally competitive,” said COSBOA CEO Luke Achterstraat. “But right now, small businesses are running on empty. If the Federal Budget fails to deliver real support, we risk seeing more closures, higher prices, and a weaker economy for everyone.”
COSBOA is urging the Government to prioritise two key areas:
1. Tax Reform: A fairer system that rewards, not penalises
The current tax system is holding small businesses back. COSBOA requests:
A permanent and expanded Instant Asset Write-Off – increasing the threshold to $150,000 to encourage investment in productivity-enhancing equipment and technology.
A review of payroll tax – simplifying and harmonising thresholds across states and territories to remove a major barrier to employment.
Reintroducing the Small Business Technology Investment Boost – providing a 20% additional tax deduction to help small businesses adopt digital tools and cybersecurity protections.
Exploration of tax relief for new small businesses – to encourage entrepreneurship and reduce the failure rate of startups in their critical first years.
“The tax system should encourage small businesses to invest, innovate, and hire – yet too often, it does the opposite. A simplified and fairer approach is needed to unlock growth,” Achterstraat said.
2. Red Tape Reduction: Let small businesses focus on running their business
Small businesses are drowning in regulatory complexity, forcing them to divert time and resources away from serving customers and growing their operations. COSBOA is advocating for:
Mandatory small business impact statements before any new policy or regulation is introduced.
A ‘Small Business Flying Squad’ – a task force dedicated to identifying and eliminating outdated, redundant, or contradictory regulations.
More user-friendly government systems – streamlining interactions with agencies like the ATO, Fair Work Commission, and ASIC to reduce administrative burdens.
An industrial relations framework that supports flexibility for casuals, contractors, and sole traders.
“The cost of compliance is a hidden tax on small businesses. Every hour spent navigating complex regulations is an hour not spent growing the business, creating jobs, or serving customers. Cutting red tape is an economic necessity,” Achterstraat said.
Failure to act risks economic decline
Without targeted support, COSBOA warns that small businesses will continue to struggle under the weight of increasing costs, regulatory complexity, and economic uncertainty. The consequences will be entrenched inflation, reduced competition, and declining living standards for all Australians.
“Australia cannot afford to take small businesses for granted,” said Mr. Achterstraat. “If the government wants a resilient and competitive economy, it must fuel the small business engine – not let it sputter and stall.”
A budget that powers small business, not stalls it
COSBOA outlines additional key measures to drive small business growth, including:
Workforce solutions – Support for small businesses to attract, train, and retain staff.
Energy relief – Practical measures to ease the burden of rising energy costs.
Cybersecurity support – Investment in digital resilience to protect small businesses from growing cyber threats.
Fair payment terms – Strengthening protections to ensure small businesses are paid on time.
“This budget is a chance to set small businesses up for success, ensuring they have the support, certainty, and conditions needed to power Australia’s economic future. The opportunity cost of inaction is too great,” Achterstraat concluded.
The full COSBOA pre-budget submission can be accessed here.
-ENDS-
For media enquiries or interviews, please contact Luke Achterstraat, Chief Executive Officer, COSBOA on ceo@cosboa.org.au or call +61 (0) 433 644 097.
About COSBOA
Established in 1979, The Council of Small Business Organisations Australia (COSBOA) is a member based not-for-profit organisation exclusively representing the interests of small businesses. The capability, representation, and reach of COSBOA are defined by a mix of over 50 national and state-based members. COSBOA's strength is its capacity to harness its members' views and advance consensus across policy areas common to many.
Our member organisations work with the COSBOA team to assist us with policy development and guide our advocacy - not just for small businesses but also for the benefit of the Australians they employ. In this capacity, COSBOA makes submissions and representations to the government, including its agencies, on issues affecting small businesses and to pursue good policy.
For more information, visit www.cosboa.org.au
Comments