The Australian Government’s 2025–26 Federal Budget, delivered by Treasurer Jim Chalmers on 25 March 2025, outlines several key initiatives impacting our member businesses and the broader automotive industry.
Small and medium business announcements
Energy Bill Relief for Small Businesses
From 1 July 2025, around one million eligible small businesses will receive $75 per quarter off their energy bills in the September and December quarters, with the Government committing around $1.8 billion to extend energy bill relief for six months. Over the last three budgets, energy bill relief has reduced small business energy bills by up to $800.
Energy Efficiency Grants
The Government is providing $56.7 million in grants through the Energy Efficiency Grants for Small and Medium Sized Enterprises program, delivered over two funding rounds. The program assists businesses with grants of up to $25,000 to manage their energy use and costs and improve their energy efficiency through a range of upgrades such as replacing inefficient appliances and improving space and water heating systems.
Digital and Cyber
Since the 2023–24 Budget, the Government has invested more than $60 million to help small businesses uplift their cyber security and digital capabilities through the Digital Solutions program, Cyber Wardens program, Cyber Resilience Service and the Cyber Health Check. Together, these programs help small businesses adopt digital tools and grasp the opportunities that going online offers, while supporting small businesses to prevent and bounce back from cyber incidents.
Automotive sector announcements
Franchise Code of Conduct Changes
Impacted sectors: new vehicle dealers, including motorcycle and farm machinery.
The Government will work with states and territories on extending Unfair Trading Practice protections to small businesses. Small businesses can have a power imbalance when dealing with large businesses, and the Government will consult on how introducing these protections can help level the playing field.
To deliver a better deal for thousands of small businesses in the franchising sector, the Government is providing $7.1 million over two years to strengthen the ACCC’s enforcement of the Franchising Code. The Government will extend protections from Unfair Contract Terms and Unfair Trading Practices to businesses regulated by the Franchising Code, including new vehicle dealerships.
Illicit Tobacco Compliance and Enforcement Package
Impacted sectors: service station and convenience store members
The Government will commit $156.7 million in program funding to support the Illicit Tobacco Compliance and Enforcement Package focused on sustained disruption of the illicit trade in tobacco and associated nicotine products. This builds on the $188.5 million investment over four years from 2023–24 for Australian Border Force to deliver a coordinated multi-agency, multi-jurisdictional compliance response to illicit tobacco trade
Subsidised Training
Over the next decade, nine out of ten new jobs will require post-secondary qualifications and almost half will come through VET pathways. The Government is delivering free training to deliver access to vocational training opportunities. The Government is committing to 100,000 permanent free TAFE places every year from 1 January 2027, subject to the passage of relevant legislation.
Hydrogen and Clean Energy
This Budget builds on the Government’s existing $22.7 billion Future Made in Australia agenda.
Since the Mid-Year Economic and Fiscal Outlook, the Government has progressed a broad range of initiatives aligned with the Future Made in Australia agenda. This includes allocating $13.7 billion to hydrogen and critical minerals production tax incentives and an additional $2 billion to the Clean Energy Finance Corporation to continue mobilising critical private investment into renewable energy, energy efficiency and low emissions technologies.
The Government has announced priority sector funding allocations from the $1.5 billion Future Made in Australia Innovation Fund. This includes $500 million for clean energy technology manufacturing capabilities including electrolysers, batteries and wind towers and $250 million for low carbon liquid fuels.
Skills & Training
The Government will provide $722.8 million over four years from 2025–26 to deliver increased support for apprentices. Funding includes:
- $626.9 million over four years from 2025–26 to reframe the New Energy Apprenticeships Program as the Key Apprenticeship Program
- $77.8 million over four years from 2025–26 to extend the current interim Australian Apprenticeship Incentive System program settings for a further six months from 1 July 2025 to 31 December 2025
- $11.0 million over four years from 2025–26 to increase the Disability Australian Apprentice Wage Support subsidy
- $7.0 million over four years from 2025–26 to increase the Living Away From Home Allowance.
Announcements already made:
DRIVEN Charger Rebate Stream
Impacted sectors: car dealerships and EV repairers
The DRIVEN Charger Rebate Stream grant opportunity will provide $40 million for EV chargers to car dealerships and EV repairers. Eligible businesses can receive up to $2,500 per eligible smart EV charger that has been purchased and installed on their site. Multiple EV chargers can be claimed, up to an amount of $20,000. Find out more HERE.
New Vehicle Efficiency Standard
Ongoing $84.5 million (from 2024-25) for emissions compliance and credit training.
$50 million for clean energy training, such as EV mechanics (continued).
What’s not in the budget?
Changes to the Luxury Car Tax and Passenger Vehicle Tariff
In contrast to the support provided to various sectors, this Budget underscores the ongoing burden on Australian drivers through outdated automotive taxes like the Luxury Car Tax and Passenger Vehicle Tariff. The Government is expected to collect nearly $1.55 billion from these taxes alone in the current financial year. These taxes remain a significant financial pressure on consumers, especially when applied to vehicles that are more efficient or equipped with advanced safety features.
Instant Asset Write-Off
Another notable omission from the Budget is any mention of the Instant Asset Write-Off scheme. This key measure has been vital for small businesses to purchase productivity-enhancing equipment and invest in their growth. Currently set to expire on 30 June 2025, the lack of clarity regarding its future leaves businesses uncertain about their ability to plan and make critical investments beyond this deadline.
Conclusion
The 2025–26 Federal Budget introduces a number of measures that will affect the automotive industry. MTA Queensland supports several of the Government’s initiatives, especially the enhanced protections for franchised dealer members through a revised Franchise Code of Conduct. However, there are areas for improvement, notably the lack of mention of the widely used Instant Asset Write-Off program.
MTA Queensland is committed to representing the interests of its members and will continue advocating for improvements to policies impacting our industry. To help shape our policy priorities, please email [email protected] to get involved in our Industry Meetings.