Coalition Announces New Tax Incentives to Support Small and Family Businesses

As the federal election approaches, the Coalition has unveiled further details in its 'Plan for Small and Family Business'—offering new tax incentives designed to stimulate business creation, innovation, and growth across Australia.

Key Measures Announced

1. Entrepreneurship Accelerator – Tapered Tax Offset The standout proposal is a new Entrepreneurship Accelerator, aimed at encouraging the formation of 350,000 small businesses over four years. This initiative would provide a tapered tax offset for newly incorporated businesses in their first year:

   • 75% offset on the first $100,000 of taxable income

   • 50% offset on the next $100,000

   This incentive is intended to ease the financial burden during the crucial start-up phase and empower Australians to pursue new ventures with greater confidence.

   
   

2. Tech Booster – $2,000 Tax Deduction Under the Tech Booster initiative, small businesses that invest more than $4,000 in digital upgrades may be eligible for a $2,000 tax deduction. Eligible tech-related expenses include:

   • Cyber security enhancements

   • E-commerce platforms

   • Digital media and marketing tools

   • General digital enablement software

   This move is designed to help small businesses embrace digital transformation and improve their competitiveness in a rapidly evolving economy.

   
   

Industry Response

The Council of Small Business Organisations Australia (COSBOA) has welcomed the measures, describing them as "positive and tangible support" for the small business sector. CEO Luke Achterstraat noted that both the Entrepreneurship Accelerator and Tech Booster offer real value to start-ups and growing enterprises, especially when paired with existing incentives like the permanent instant asset write-off and $20,000 meal and entertainment deduction.

COSBOA also praised the proposed expansion of the Australian Small Business and Family Enterprise Ombudsman’s role, and the formation of a new Small Business Deregulation Taskforce, which aims to reduce red tape. However, Achterstraat cautioned that meaningful deregulation would require genuine coordination and engagement with industry stakeholders.

Additional Support Measures

The Coalition’s broader plan also includes:

• A $12,000 direct incentive for small businesses to hire apprentices in shortage areas

• Policy support for a clearer definition of casual employment

• A proposed tax deduction on mortgage interest for first home buyers purchasing newly built homes

  
  
  
  

These announcements add to a growing list of tax and business-friendly measures released by both major parties in the lead-up to the election.