The Australian Government’s Federal Budget 2025-26 has been unveiled, and while much of its focus is on broader cost-of-living relief and healthcare initiatives, there are some noteworthy updates that small business owners should pay attention to, especially regarding energy-related measures.
For small businesses navigating rising energy costs, the budget offers some relief in the form of rebates, grants, and investment in clean energy infrastructure. Here’s a breakdown of the most relevant energy highlights from this year’s budget to help your business plan and adapt.
Energy rebates extended for small businesses
One of the most significant announcements for small businesses is the extension of the Energy Bill Relief program until the end of 2025. Approximately one million small businesses are eligible for rebates of up to $150, distributed in two instalments of $75 each.
Over the past three budgets, this program has helped small businesses save up to $800 on their energy bills. While not a long-term solution, this rebate aims to ease the immediate pressure of high energy costs as businesses adjust to a rapidly changing energy market.
Energy Efficiency Grants program
To support sustainability efforts, the budget has allocated $56.7 million under the Energy Efficiency Grants program. This funding, distributed to over 2,400 businesses, is designed to assist with essential upgrades that improve energy efficiency, targeting initiatives such as:
- Replacing outdated and inefficient appliances.
- Improving heating, ventilation, and cooling systems.
- Installing energy-efficient lighting and equipment.
Why is this important?
Implementing energy efficiency upgrades often requires upfront investment, which can be challenging for small businesses. Grants like these provide the financial support needed to reduce energy waste and, in turn, cut electricity costs over time. These upgrades can also help businesses meet sustainability goals and comply with evolving regulations around emissions and energy consumption.
Clean Energy Finance Corporation (CEFC) boost
The Clean Energy Finance Corporation (CEFC) received a significant boost of $2 billion to fund renewable energy and low-emissions technologies. While this funding primarily targets larger-scale projects, the trickle-down impact on small businesses cannot be overlooked. Investments in renewable energy contribute to building a more stable, cost-effective energy grid, benefiting all businesses over time.
Additionally, small businesses with an interest in integrating renewable energy solutions, such as solar panels or battery storage, may benefit through partnerships or local initiatives that align with this funding.
Taking advantage of federal energy support
Navigating government programs and incentives can feel overwhelming, but leveraging these resources can play a vital role in reducing energy expenses and improving your bottom line. Here are actionable steps your business can explore:
1. Apply for energy rebates
Ensure you are registered for energy rebates by confirming your eligibility with your electricity provider. Many small businesses already qualify but may need to update their details to receive payments.
2. Upgrade with energy efficiency grants
Get ahead of the competition by identifying areas in your business that could benefit from energy upgrades. Check out government programs designed to provide financial aid. Applications typically require a straightforward submission process outlining how the grant will be utilised.
3. Integrate renewable energy
Explore renewable energy solutions that could align with emerging trends driven by the CEFC's investments. Options such as solar panels or energy storage not only reduce energy bills but also position your business as environmentally responsible, an attribute increasingly valued by customers.
4. Partner with energy experts
By partnering with energy experts like Zembl, you can help your business maximise savings and receive guidance on available grants and rebates.
How the budget aligns with broader business challenges
While extending rebates and funding energy efficiency grants are positive steps, the 2025-26 Federal Budget has been described as relatively lean for small businesses. Beyond the energy sector, small business owners may face challenges such as managing other rising costs, navigating labour market changes, and staying competitive in a slow economy.
The energy-related measures are helpful, but small businesses continue to call for more robust, long-term strategies to improve business conditions. Missing from this budget are additional tax incentives or write-offs that allow businesses to reinvest in operations. These discussions will likely gain momentum leading into the next federal election.
Building a resilient energy strategy for your business
The energy landscape is continually evolving. Small business owners need to prioritise investments in energy efficiency and renewable energy to shield themselves against future price volatility. The Federal Budget provides opportunities to make incremental improvements, but businesses must take proactive steps to build lasting resilience.
To make the most of these opportunities, consult with an energy expert to find a strategy that fits your business energy needs.
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