2025 Federal Budget
The CSRC welcomes the government’s commitment to several key budget initiatives that, while broad in scope, have the potential to positively impact small businesses within the creative skills retail sector over time.
Personal Income Tax Cuts
From 1 July 2026, the lowering of the first tax threshold will deliver up to $268 in annual savings for the average worker - rising to $536 from mid-2027. This provides a welcome boost to disposable income, which may support increased spending in service-based industries like hair and beauty.
General Cost-of-Living Support
Increased funding for PBS medications, expanded access to bulk-billed GP visits, and student debt relief all contribute to easing everyday financial pressures on our clients and workforce, particularly young Australians and working families.
Energy Bill Relief for Households and Small Businesses
We welcome the extension of the $300 energy bill rebate, with additional rebates of $75 each to small businesses through to the end of 2025. This will help offset operational costs for salons and studios managing rising utility expenses.
Investment in Freight and Supply Chain Resilience
A $17.1 billion investment in national freight efficiency and infrastructure projects will support supply chain stability, helping businesses access essential products and retail stock more reliably.
Subsidised Childcare Expansion
The continued expansion of affordable childcare access is a positive step for working parents across the industry, improving flexibility for both business owners and staff.
Support for Small Business Digital Capability
We acknowledge and support the government’s ongoing investment in digital transformation and cybersecurity readiness for small business. These resources are crucial for protecting client data, enabling e-commerce, and helping creative service providers operate more efficiently.
Measures that will impact the Creative Skills Retail Sector - hair, barber and beauty industries more specifically:
Tax Reductions for Small Businesses: The budget introduces tax cuts for small businesses, which include many hair and beauty salons. These reductions aim to alleviate financial pressures and support business growth.
Energy Bill Rebates: An extension of the $300 energy rebate has been announced, providing an additional $150 to eligible small businesses. This relief will be delivered in two $75 rebates off electricity bills through December 31, 2025, helping salons manage operational costs.
Apprenticeship Incentives: The government is offering $10,000 incentives for apprentices in fields related to construction. While hairdressing apprenticeships are not directly mentioned, salons should monitor for any sector-specific programs that may arise.
Ban on Non-Compete Clauses: From 2027, non-compete clauses will be prohibited for employees earning under $175,000. This reform affects over 3 million workers, including hairdressers and salon staff, potentially increasing staff mobility within the industry.
Changes to Instant Asset Write-Off: The $20,000 instant asset write-off has not been extended, impacting salons planning to invest in new equipment or renovations.
Wage Increases in Related Sectors: While specific to aged care and early childhood education, the budget includes funding for wage increases in these sectors. Although not directly related, these changes may influence wage expectations across various industries, including hair and beauty.
Business owners should review these measures to understand their implications and adjust business strategies accordingly. The CSRC will continue to support members with smarter business strategies and advocate for positive change.