The 2026 Federal Budget has delivered a mixed outlook for Australia’s small business sector, with some encouraging announcements alongside growing concerns about rising operational pressures and proposed tax reforms.

As a proud member of the Council of Small Business Organisations Australia (COSBOA), the Australian Hairdressing Council has been closely following the Budget announcements and the advocacy work being undertaken on behalf of small businesses nationally.

For salon owners and barbers, many of these issues hit close to home. Rising wages, rent, insurance, freight, fuel, energy and compliance costs continue to place pressure on margins at a time when consumers are becoming increasingly cautious with discretionary spending.

Below is an overview of the key Budget measures and what they could mean for our industry.

1. Instant Asset Write-Off Made Permanent

One of the most positive announcements in the Budget was confirmation that the $20,000 Instant Asset Write-Off will become permanent from 1 July 2026.

This provides more certainty for small businesses investing in equipment, salon upgrades, furniture, technology and productivity improvements.

However, COSBOA has continued to advocate for the threshold to be increased, noting that $20,000 no longer reflects the true cost of many business investments in today’s economy.

For many salon businesses, even a small refit, fit-out upgrade or equipment purchase can quickly exceed this threshold.

2. Red Tape & Compliance Reform

The Budget also included commitments aimed at reducing regulatory burden and simplifying compliance processes for small businesses.

Key areas include:

• Streamlining government services and reporting
• Progressing Digital ID access
• Reducing duplication across agencies
• Exploring payroll tax and licensing harmonisation

This is an area the AHC strongly supports. Salon owners are already managing staffing, training, compliance, customer service and rising operational costs — reducing unnecessary administration is critical.

The key focus now will be implementation and whether these reforms genuinely reduce time, paperwork and cost pressures for small business owners.

3. Cost-of-Doing-Business Pressures Continue

While some support measures were announced, the broader reality remains challenging for many small businesses.

COSBOA highlighted ongoing pressures including:

• Rising wages
• Fuel and freight increases
• Energy costs
• Insurance premiums
• Rent and overheads
• Compliance obligations

For hair and barber businesses, these pressures are compounded by softer consumer spending and increased competition for the discretionary dollar.

Many salon owners continue to face difficult decisions around pricing, staffing and profitability while trying to maintain strong customer experiences and team culture.

4. Concerns Around Proposed Tax Changes

COSBOA has also raised significant concerns regarding proposed changes to:

• Capital Gains Tax
• Trust distribution taxation

These proposed reforms may create uncertainty and unintended consequences for many small and family businesses.

For many salon owners, their business represents years — sometimes decades — of personal investment, hard work and sacrifice. In many cases, the salon itself forms part of their long-term retirement planning and financial future.

COSBOA is calling for extensive consultation with the small business sector before these changes move forward.

Advocacy Matters More Than Ever

The AHC knows these pressures are being felt deeply across our industry. Advocacy remains one of the most important roles we play — ensuring the voice of salon owners, barbers and industry employers is represented in national conversations around small business policy, workforce development and economic reform.

COSBOA CEO Skye Cappuccio and Chair Matthew Addison continue to engage directly with Treasury and government representatives following the Budget announcement, advocating for practical support measures that strengthen cashflow, reduce red tape and improve long-term sustainability for small businesses across Australia.

The AHC will continue working closely with COSBOA and key stakeholders to keep members informed as further Budget details and implementation measures unfold.