In the lead-up to the 2025 Federal Election, Inside Small Business is breaking down what the major parties have promised to deliver across some key areas of interest to small businesses.
In this article, we’re covering red tape – or changes promised by the parties that could ease the administrative burden on small-business owners.
Here’s what the major parties have said they will do:
Coalition (LNP):
The Coalition’s 2025 election campaign has catered directly to small-business owners with a few specific deregulation promises. Here’s what it’s pledged to do so far:
Repeal two major IR changes: Dutton has promised to change the definition of a casual worker back to the former, simpler version. Also on the chopping block is the newly-introduced ‘right to disconnect’ – although this isn’t scheduled to apply to small-business owners until later this year.
Set up a Cabinet-level Small Business Deregulation Taskforce: No specifics on this so far, but it could resemble the last small-business specific deregulation taskforce of the same name from 1996. This was a six-month effort to reduce the regulatory burden on small-business owners and culminated in a set of key recommendations.
Simplify corporations law: The LNP’s promise to simplify corporations law in its Plan for Small and Family Business could be significant for small companies. The Coalition plans to do this by working with ASIC to make changes to the Corporations Act.
Work with ASBFEO to simplify starting a new business: Part of a larger push to encourage Australians to start businesses, the LNP will task the ABSFEO to come up with ways to make setting up a venture faster and cheaper.
Labor:
Labor’s red tape strategy focuses more on longer-term structural fixes, like harmonising state rules and tackling declining productivity. Here’s what it’s got in store:
$900 National Productivity Fund: Labor will continue to administer the National Productivity Fund that it worked with the Business Council of Australia to create.
The goal of the fund is to boost productivity and streamline approvals processes in partnership with state governments. So far, this has reduced red tape in areas such as environment, foreign investment, mergers and acquisitions, energy planning, and cultural heritage, according to Treasurer Jim Chalmers.
National Small Business Strategy: Labor’s National Small Business strategy identified key focus areas for the sector going forward. At the heart of the plan was an acknowledgement of the regulatory complexity faced by small businesses. It also sets out how jurisdictions will work together to avoid duplication of resources (and confusion).
Banning non-compete clauses: In another productivity-focused initiative, Labor plans to ban non-compete clauses if reelected. While framed as a way to remove barriers to entrepreneurship, the change could also complicate IP protection for some businesses, depending on the final safeguards introduced.
Of course, promises are easier made than delivered.
While the Coalition’s pitch leans on immediate deregulation aimed squarely at small businesses, Labor’s approach targets deeper systemic reforms that could take longer to materialise.
How much red tape is actually cut, and whether small businesses feel the benefits, will ultimately depend on execution after the election.
