Budget 2026–27: What it means for small business

The Federal Budget for 2026–27 arrives at a time when Australia’s 2.7 million small and medium-sized businesses are continuing to navigate a challenging operating environment. Persistent cost pressures, elevated interest rates and a backdrop of global uncertainty are weighing on confidence.

Against this context, there are some provisions aimed at households that may have indirect benefits for small businesses. Targeted tax cuts and a reduction in the fuel excise could provide some relief to household budgets and, in turn, support consumer confidence.

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At the business level, the decision to make the $20,000 instant asset write-off permanent provides a degree of certainty. Measures aimed at start-ups and early-stage businesses, including earlier access to tax refunds on losses and expanded venture capital incentives, may also help improve cash flow and support investment at critical stages of growth.

However, broader structural changes, particularly those relating to negative gearing, capital gains tax and family trusts, are likely to prompt further scrutiny and debate.

What remains consistent is the need for clear engagement with customers to understand how these settings are playing out in practice and where support may be needed.

Ross Duncan is Regional Executive, Business and Private Bank at ANZ.