Albanese government must treat SMBs as ‘the engine room of the economy’

With the Albanese government gaining a decisive win in the 2025 federal election, some are calling on the second-term agenda to cater more towards small businesses.

The “cutting of red tape” was constantly called for in the lead-up to the federal election, with the Coalition pledging to remove the “oppressive” regulations that are reportedly harming small businesses.

However, the federal election failed to tip the Coalition’s way, with the Albanese government scoring a monumental victory – leaving small businesses curious about what the next three years will look like for them.

According to Ben Thompson, chief executive at Employment Hero, the Albanese government’s second term should aim to empower small businesses across Australia as the “engine room” of the economy.

“Employment Hero is in a unique position to be working closely with hundreds of thousands of SMEs daily, who are telling us they’re spending too much time navigating compliance than building and growing their businesses,” said Thompson.

“The race to the polls saw focus on a $1,000 ‘instant’ deduction for home office costs versus public servants being dragged back to their cubicles; but in 2025, we need action more aligned with reality!”

“If we want Australia to be a nation of innovators, we need to start treating small businesses like the engine room of the economy, not an afterthought. That means more support and less red tape. We’re looking forward to working with the government to leverage our data and unique insight to help drive that change.”

As previously reported by HR Leader, Innes Willox, chief executive of the Australian Industry Group (Ai Group), also touched on the issues that businesses have been presented with.

“The re-elected government will need to deal with our current national economic and security challenges, which have become increasingly complex. The challenges for Mr Albanese’s new government will be immense,” said Willox.

“This is the toughest time in a generation to be in business. The economy is growing at its weakest pace since 1991, when Australia was last in recession, with only surging public spending keeping our head above water.

“We have seen a significant uptick on business closures – 151,000 established businesses last year – driven by the steady decline in profits, increased costs, and rapidly growing regulation. Boosting our productivity, which will ensure future Australians have better living standards and higher wages, must be a national priority.”

Thompson argued that the government needs to introduce policies that encourage businesses to take risks and embrace the future.

“We need policies that reward risk-taking, streamline regulation, and give business owners the freedom to focus on what they do best: solving problems, creating jobs, and driving growth,” he said.

“Instead of one-off deductions, we’re calling on the government to start funding the foundations to future-proof the workforce, such as high‑speed connectivity, nationwide digital upskilling and responsible AI adoption. Those investments compound; a quick tax write‑off does not.”

“AI will reshape every industry faster than any location debate, and as an AI-first organisation, we look forward to consulting on how to navigate an increasingly AI-driven labour market.”