Last night, Treasurer Jim Chalmers handed down the federal budget. For small business owners — tradespeople, contractors and sole operators in particular — there's a lot to unpack. Some good news, some less so. Here's our read of what matters most for your trade business.

The $20,000 instant asset write-off is now permanent

The government has locked in the $20,000 instant asset write-off for businesses turning over less than $10 million. You can write off eligible assets up to $20,000 in the same year you buy them.

What this means for you: Getting tax deductions for lower value equipment (less than $20k per item) helps you buy the kit you need and make your tax payments lower.  Looking like you will be profitable this year? Then buy the equipment you need this year and reduce your tax bill.  And be comfortable that you can do the same next year. Talk to your accountant about what qualifies, and consider how to structure a purchase ahead of EOFY.

Had a rough year? Loss carry-back is back

The budget reintroduces company loss carry-back rules from 1 July 2026. In simple terms: if your business has a tough year and makes a loss next year, you may be able to use that loss to recover tax you paid in an earlier profitable year.

This is particularly relevant if your business faces  a rough patch — rising material costs, slower consumer spending, or the lingering effects of higher interest rates. Rather than waiting years to see the tax benefit of a loss, you can access it sooner. Losses will be carried back up to two years.‍

What this means for you: Next year, if you operate through a company structure and have a tough year but had profitable FY25 or FY26, then you may be able to get a refund by carrying back tax losses. One to keep in mind for next year - speak to your accountant about whether loss carry-back will apply to your situation.

$150 energy rebate

Small businesses will receive a $150 energy rebate — a modest but welcome offset as energy costs remain elevated, particularly if you're running a workshop, a yard, or any fixed premises.

Run your business through a family trust – one to look out for on the horizon

From 1 July 2028 taxation of discretionary trusts, usually the way family trusts are set up, may change.  Still a couple of years out, but make a point of speaking ato your accountant about the implications for your business and family should this be passed as legislation.

At Laddr, we offer fast, flexible finance built for Reece Trade Customers. Want to learn more? Get in touch with our team.

This article is general in nature and does not constitute financial or tax advice. Please speak with a qualified adviser about your individual circumstances.