The Franchise Council of Australia (FCA) has responded to the 2025–26 Federal Budget by acknowledging some targeted support measures while highlighting the need for a more coordinated and strategic approach to support small businesses— especially those in franchising.
Unfortunately, this year’s Budget offers limited new initiatives for small business. While modest relief has been extended, including energy rebates and excise indexation pauses, no funding has been allocated to implement the National Small Business Strategy. The future of the Instant Asset Write-off, a longstanding and effective tool for small business investment, also remains unclear.
Measures included in the Budget offering modest relief for small business include:
- A six-month extension of energy bill rebates, providing up to $150 for around one million small
- A temporary pause on draught beer excise indexation, offering some savings for hospitality and retail businesses.
- A package aimed at addressing unfair trading practices, funded from within existing Treasury resources.
Franchising in Australia supports nearly 2.6 million small businesses (franchisors and franchisees), contributes over $590 billion to the economy, and employs more than 5.4 million Australians. This sector plays a vital role in the health of the national economy and deserves a clear, stable policy environment to support continued growth and employment.
The FCA continues to work collaboratively with Government on key reforms, including the upcoming implementation of the updated Franchising Code of Conduct on 1 April 2025 and the development of a licensing regime. This includes constructive dialogue around a co-regulatory model proposed by the FCA, reflecting the sector’s commitment to transparency, accountability and best practice.
With ongoing economic uncertainty and small businesses under pressure, the FCA will continue to advocate for fair, practical policy that supports long-term growth for the franchising sector and the broader small business community.
FCA CEO Jay Westbury and Head of Media and External Affairs LJ Loch were in Canberra for Budget.
Quotes attributable to FCA CEO Jay Westbury
“While some modest measures are welcome, this year’s Budget stops short of delivering the coordinated support franchising and small business need.”
“The contribution of franchising to the Australian economy is significant—and we need policies that reflect that reality.”
“We remain committed to working constructively with Government on reforms that strengthen our sector. Our focus is on ensuring that the Code changes and any future licensing regime deliver practical, fit-for-purpose outcomes for businesses on the ground.”
Franchise businesses present lucrative opportunities for entrepreneurs seeking established business models. These ventures offer the advantage of brand recognition and support from the franchisor. Aspiring business owners can capitalize on the proven success of franchise businesses while benefiting from ongoing training and marketing assistance. The structured framework of franchise businesses often appeals to individuals looking to enter the business world with a trusted and established system.
About the Franchise Council of Australia (FCA):
The Franchise Council of Australia (FCA) is the peak industry body for franchising in Australia, representing both franchisors and franchisees.
With a rich history spanning four decades, the FCA is committed to promoting excellence, best practices and innovation in the franchising sector. As a national voice on franchising, the FCA advocates for the interests of its members and works collaboratively to ensure the growth and success of franchising in Australia.