From fuel crisis vouchers to cyber resilience funding, COSBOA has outlined a practical set of Budget asks for Australia’s five million small business employees.
At the centre of COSBOA’s Budget submission is a call to increase the instant asset write-off threshold beyond its current $20,000 limit and make the mechanism permanent rather than subject to annual renewal.
The current threshold, COSBOA argues, no longer reflects the real cost of the assets small businesses need to operate efficiently. Cappuccio put it in practical terms. “For a tradie, it’s a vehicle or equipment needed to take on more work,” she said. “For a food producer or manufacturer, it’s machinery that increases production capacity and reduces downtime. These aren’t discretionary purchases, they are the tools businesses need to operate efficiently, be innovative and deliver more with the resources they have.”
Making the write-off permanent removes the uncertainty that currently surrounds it. Small business owners have been unable to plan equipment investment with confidence because the threshold and eligibility rules have changed repeatedly across successive Budgets. A permanent mechanism at a realistic threshold would allow owners to make investment decisions based on business need rather than the Budget calendar.
The red tape burden
COSBOA is also supporting a joint industry call for a 25% reduction in regulatory red tape, alongside practical reforms to simplify compliance frameworks and reduce duplication across federal and state governments.
The scale of the burden is documented. A 2025 Mandala Partners report estimated regulatory compliance costs the Australian economy around $160 billion annually, with duplication across governments identified as a key driver of unnecessary cost and complexity. For small businesses, that translates directly into time. COSBOA estimates small businesses are currently spending the equivalent of almost a full day each week on compliance and administration, covering BAS and tax reporting, wage awards, licence renewals, insurance documentation and growing data and privacy requirements.
Cappuccio described the burden in concrete terms. “For many small businesses, red tape isn’t abstract. It’s paperwork, forms, duplicate reporting and time spent dealing with multiple agencies,” she said. “That’s time taken away from customers, staff and running the business. Reducing duplication and simplifying these processes would immediately ease pressure and lift productivity.”
Fuel crisis cashflow support
COSBOA is also calling for targeted support for small businesses facing acute cashflow pressure as a result of the fuel crisis, including a proposed $3,000 incentive voucher for small businesses to access trusted advisers such as bookkeepers and accountants.
The proposal addresses a specific gap the organisation has identified: many small business owners delay seeking professional advice during periods of financial pressure because of cost, even when that advice is most needed. A targeted voucher to access a qualified service provider would help businesses manage cashflow, make informed decisions and remain viable before challenges become crises.
Cappuccio said the fuel crisis has compounded an already difficult operating environment. “Small businesses are managing a cumulative set of pressures, from fuel and insurance through to compliance and financing costs,” she said. “What they need from this Budget is clear: immediate backing where it’s needed, and policy certainty that allows them to plan ahead, invest and improve productivity.”
The broader ask
Beyond the headline measures, COSBOA is calling for continued investment in the Cyber Wardens program, which has already helped thousands of small businesses build resilience against growing cyber threats, and support for initiatives like Go Local First, designed to drive customer demand toward local businesses.
Cappuccio framed the overall submission in terms of what small businesses do when conditions support them. “Whether it’s a local café, a tradie, a farmer or a small retailer, these businesses are employing local people, supporting other local businesses and keeping communities connected,” she said. “If the Government pulls the right levers, small businesses will do what they’ve always done: invest, employ and drive economic growth.”
The federal Budget is due to be handed down on 25 March 2026. Dynamic Business will cover the Budget announcements most relevant to small business owners as they are released.
