Federal election 2025: Coalition sets ambitious small business target announces new tax incentives to reach it

Peter Dutton will look to create 350,000 new small businesses over the next four years if he wins the election, unveiling fresh tax offsets and deductions to incentivise entrepreneurial Australians.

Amid the Easter lull in campaigning, the Opposition Leader will on Saturday release the Coalition’s small business strategy and announce its “entrepreneurship accelerator” and “tech booster” incentives.

Under the first, newly incorporated businesses would get tapered tax offsets in their first three years of operation.

In the first year, new businesses will only pay tax on $25,000 of the first $100,000 it makes, and then on $50,000 of the second $100,000. Anything they make above $200,000 of taxable income is taxed normally.

The offset rates in the second year would be 60 per cent of the first $100,000 and 40 per cent of the second, and in the third year 50 per cent and 30 per cent respectively.

The Coalition says the concession will support Australians to “take the risk” and start a business, especially in the early years where credit is harder to access.

Mr Dutton has also announced businesses will be able to claim a maximum tax deduction of $2000 for tech upgrades of $4000 - which could be across multiple purchases.

“As someone who has worked in and grown their own small business, I know just how much our small businesses are hurting right now,” he said.

“A Coalition Government will be a friend and advocate for small and family businesses.”

The Coalition has been sharpening its pitch as the voice of small business in the leadup to this election, arguing Labor has overseen a record number of insolvencies.

A recent data analysis found there had been a record number of new businesses setting up shop, which has pushed the overall rate down.

The Coalition will set an ambitious target of creating a net 350,000 new small and family businesses within four years, if it wins on May 3.

It believes it can do this by lowering taxes, making finance easier, cutting down red tape, delivering cheaper energy, streamlining employment, and creating a level playing field.

Deputy Opposition leader Sussan Ley said the Coalition’s plan “comes at a time when Australia’s small and family businesses need it most”.

“This is a comprehensive package to get our economy back on track,” she said.

Labor has meanwhile pledged to help more small businesses grow by extending the $20,000 Instant Asset Write Off for another year.