Federal Budget – What It Means for Small Business and Creatives
Every May, the Australian Federal Budget shapes the landscape for small businesses, sole traders, and creative industry professionals. For production companies, freelance crew, and small businesses in film, television, and the arts, each budget can bring significant changes to tax rates, asset write-off thresholds, screen production offsets, and arts funding.
At Count Out Loud, Carmel and the team review every Federal Budget with a specific focus on how it affects our clients in the creative industries. As a CA and CPA qualified founder with deep expertise in film production accounting, Carmel understands that the headline numbers rarely tell the full story for small business owners and creative professionals. The measures that matter most to our clients are often buried in the fine print.
This page consolidates the key Federal Budget highlights from recent years, so you have a single reference point for the measures that affect your business. We update it each year when the new budget is handed down, so bookmark it and check back every May.
2025-2026 Federal Budget Highlights
The 2025-2026 Federal Budget was handed down on 25 March 2025 by Treasurer Jim Chalmers. Key measures relevant to small businesses and creative industry professionals included:
- Instant asset write-off – The $20,000 instant asset write-off threshold for small businesses was extended for a further 12 months to 30 June 2026.
- Superannuation – The superannuation guarantee rate reached 12% from 1 July 2025 as legislated. The $3 million super tax threshold for Division 296 was confirmed to proceed.
- Tax cuts – Additional cost-of-living tax cuts were announced, building on the Stage 3 tax reforms that took effect from 1 July 2024.
- Screen production offsets – The Producer Offset, Location Offset, and PDV Offset rates remained unchanged at 40%/30%, 30%, and 30% respectively.
- Energy incentive – The small business energy incentive bonus deduction of 20% was extended.
For personalised advice on how the 2025-2026 Budget measures affect your business, contact the Count Out Loud team.
2023-2024 Federal Budget Highlights
The 2023-2024 Federal Budget was handed down on 9 May 2023 by Treasurer Jim Chalmers. While the government focused heavily on social responsibility and delivering the first surplus in over a decade, the budget contained several important measures for small businesses, creative industry professionals, and individuals.
As Carmel noted at the time, there was not a lot specifically targeted at small business in this budget, but the measures that were included had significant implications for planning and cash flow.
Small Business Measures
Instant Asset Write-Off Extended at $20,000 Threshold
The instant asset write-off threshold for small businesses applying the simplified depreciation rules was set at $20,000 for the 2023-2024 income year. This was a notable reduction from the temporary full expensing regime that ended on 30 June 2023, which had allowed businesses to immediately write off assets of any value. For production companies and creative businesses, this change required careful timing of equipment purchases. Cameras, lighting rigs, editing suites, and other production equipment costing more than $20,000 would need to be depreciated over their effective life rather than claimed in full upfront.
Small Business Energy Incentive
An additional 20% deduction was made available for small and medium business expenditure supporting electrification and energy efficiency. This bonus deduction was designed to help businesses invest in energy-saving equipment and reduce their operating costs. For production studios and office-based creative businesses, this could apply to upgrades like energy-efficient lighting systems, solar panel installations, or more efficient heating and cooling systems.
Reduced Administrative Burden
Funding was provided to the ATO over four years to lower the tax-related administrative burden for small and medium businesses, cut paperwork, and reduce the time small business spends on tax compliance. Additionally, a temporary lodgment penalty amnesty program was provided to small businesses to help those that had fallen behind with their BAS and tax return lodgments.
Screen and Production Industry Measures
Location Offset Permanently Increased to 30%
The Location Offset was permanently increased to 30% from 16.5%, a significant boost for attracting international film and television productions to Australia. The Qualifying Australian Production Expenditure (QAPE) thresholds were also increased from $15 million to $20 million for feature films, and from $1 million to $1.5 million per hour for television series. This was a major win for the Australian screen industry and for production accounting firms like Count Out Loud that support these productions.
FBT Exemption Changes for Electric Vehicles
The fringe benefits tax exemption for eligible plug-in hybrid electric cars was set to end from 1 April 2025. Businesses that had taken advantage of this concession for novated lease arrangements needed to factor this change into their fleet planning.
Superannuation Changes
Payday Super from 1 July 2026
Employers will be required to pay their employees’ superannuation guarantee entitlements at the same time as they pay salary and wages, effective from 1 July 2026. This is a significant change for businesses that had been paying super quarterly. For production companies that manage large crews on short-term contracts, this change requires robust payroll systems that can handle concurrent super payments. Carmel’s advice is to start preparing your payroll processes well in advance – talk to your software provider and reach out to Count Out Loud if you need guidance on implementation.
Reduced Super Tax Concessions for High Balances
Superannuation tax concessions were reduced for individuals with total superannuation balances exceeding $3 million from 1 July 2025. This means an additional 15% tax on earnings for funds above the $3 million threshold. While this affects a smaller number of people, it is relevant to long-established business owners and senior professionals in the creative industries who have built substantial super balances over their careers.
Individual Tax Measures
Medicare Levy Low-Income Thresholds Increased
CPI-indexed Medicare levy low-income threshold amounts were announced for the 2023-2024 income year, providing modest relief for lower-income earners including casual crew and emerging creative professionals.
Income Support and Housing Measures
Income support payment base rates were increased by $40 per fortnight. The minimum age for the higher JobSeeker Payment rate was reduced from 60 to 55 years. Housing measures were introduced to increase support for social and affordable housing, and Commonwealth Rent Assistance was increased by 15% to help address rental affordability challenges.
2021-2022 Federal Budget Highlights
The 2021-2022 Federal Budget was delivered in the context of Australia’s post-pandemic economic recovery. It contained significant measures aimed at stimulating business investment, supporting jobs, and accelerating the digital economy – all of which had direct implications for small businesses and the creative industries.
Business Investment Measures
Temporary Full Expensing Extended Until 30 June 2023
One of the most impactful measures for small and medium businesses was the extension of temporary full expensing until 30 June 2023. Eligible businesses could claim an immediate deduction for the total cost of depreciating assets, and in some cases this applied to second-hand assets as well. For production companies, this was a significant opportunity to invest in cameras, post-production hardware, studio fit-outs, and other capital equipment while claiming the full cost in the year of purchase. Carmel encouraged clients to take advantage of this measure while it was available, as it represented a substantial cash flow benefit.
Loss Carry-Back Rules Extended
Eligible companies could carry back tax losses from the 2023 financial year to offset tax bills from 2019 onwards. This was particularly valuable for creative businesses that had experienced losses during the COVID-affected years of 2020 and 2021 but had been profitable in earlier years. By carrying losses back, these businesses could generate tax refunds from prior profitable years, providing a much-needed cash injection during the recovery period.
Company Tax Rate Reduction
Small to medium company tax rates reduced to 25% from 1 July 2021 as planned. This applied to base rate entities with aggregated turnover below $50 million, which includes the vast majority of production companies and creative businesses in Australia.
ATO Debt Recovery Action Streamlined
The government committed to reducing legal fees and red tape associated with ATO debt recovery for small business. This was welcome news for businesses that had accumulated tax debts during the pandemic and were working to get back on track.
Digital Economy and Innovation
Digital Economy Strategy
A whole-of-government Digital Economy Strategy was funded, covering digital cadetships, innovation investment incentives, e-invoicing, cyber security improvements, an overhaul of myGov, and building digital capacity for small to medium businesses. For creative industry businesses, the digital capacity-building initiatives and innovation incentives were particularly relevant as the sector continued to embrace digital workflows, cloud-based collaboration, and new distribution platforms.
Screen Industry Measures
Producer Offset Maintained at 40%
The Producer Offset was confirmed to stay at 40% for feature films with a theatrical release. This maintained the existing incentive structure for Australian feature film production and was an important signal of ongoing government support for the domestic screen industry. For production accountants like Count Out Loud, ensuring clients correctly structure their productions to qualify for the offset remains a core part of our service offering.
Individual and Superannuation Measures
Personal Income Tax Cuts
The low and middle income tax offset (LMITO) continued for another year, providing additional tax relief for individuals earning up to $126,000. This benefited many freelance crew members and sole traders in the creative industries.
Self-Education Expenses
The full cost of eligible self-education expenses could be claimed as a deduction, removing a previous $250 non-deductible threshold. This was good news for creative professionals investing in their skills through courses, workshops, and training programs.
Superannuation Changes
Several superannuation reforms were introduced, including changes to the work test for non-concessional contributions, expanded downsizer contribution eligibility for people over 60, relaxed SMSF residency rules, and a proposal to remove the $450 monthly minimum earnings threshold for superannuation guarantee contributions. The removal of the $450 threshold was particularly relevant for casual crew members who often work short engagements across multiple productions.
Residency Test Update
The primary residency test was updated so that individuals present in Australia for 183 days or more would be considered residents for tax purposes. This had implications for international crew working on Australian productions and Australian crew taking work overseas.
What to Watch in Each Federal Budget
Carmel recommends that every small business owner and creative industry professional pays attention to these key areas each time a Federal Budget is delivered:
- Instant asset write-off thresholds – This directly affects when and how you purchase equipment. If the threshold is high, it may make sense to bring forward capital purchases. If it drops, you may want to spread acquisitions across financial years. For production companies, this covers everything from cameras and lenses to vehicles and studio equipment.
- Superannuation guarantee rate changes – The super rate directly impacts crew payroll costs. Every increase in the super guarantee rate needs to be factored into production budgets, especially for large crews on feature films and television series.
- Screen production offset rate changes – Any changes to the Producer Offset, Location Offset, or PDV Offset can significantly affect the financial viability of a production. Even small percentage changes can represent hundreds of thousands of dollars on a mid-budget feature.
- Arts and culture funding announcements – New funding for Screen Australia, state screen agencies, the Australia Council, and other arts bodies can create new opportunities for productions and creative businesses.
- Small business tax rate changes – The base rate entity tax rate affects your after-tax profit and therefore your capacity to reinvest in your business, hire staff, and take on new projects.
- GST and BAS changes – Any changes to GST thresholds, reporting requirements, or BAS lodgment processes affect the administrative burden on your business. Staying on top of these changes helps you avoid penalties and maintain good standing with the ATO.
- Energy and sustainability incentives – Bonus deductions and grants for energy efficiency and electrification can reduce your operating costs, especially if you are running a production studio or office.
- Compliance and amnesty programs – If you have fallen behind on lodgments or have outstanding tax debts, watch for amnesty programs that can help you get back on track without penalties.
Carmel’s top tip: do not wait until June to review the budget. The best time to act on budget announcements is in the weeks immediately after they are made, so you can adjust your tax planning, equipment purchases, and business strategy for the coming financial year.
How Count Out Loud Helps
Count Out Loud is a specialist accounting firm for the creative industries, led by Carmel, a qualified Chartered Accountant and CPA. Each year, we review the Federal Budget in detail and provide tailored advice to our clients on how the changes affect their specific circumstances.
Whether you are a sole trader, a production company, or a small business in the creative sector, we can help you:
- Understand how budget measures apply to your business
- Adjust your tax planning strategy for the new financial year
- Time equipment purchases to maximise deductions
- Prepare for superannuation and payroll changes
- Navigate screen production offset applications
- Stay compliant with new reporting and lodgment requirements
Get in touch with the Count Out Loud team to discuss how the latest Federal Budget affects your business.
Phone: (02) 9043 1525
Contact us: countoutloud.com.au/contact