Treasurer Jim Chalmers’ fifth Federal Budget has delivered a raft of changes that will affect Australian retailers, including new powers to scrutinise offshore e-commerce sites such as Temu and Shein.

Among the new rules, Chalmers’ self-described “most important and ambitious Budget in decades” made the instant asset write-off for small businesses permanent. It means companies with a turnover under $10 million can immediately deduct the full cost of assets worth less than $20,000.

It also introduced commitments to reduce the regulatory burden by $10.2 billion per year and unveiled a loss carry-back refund, allowing businesses to use current-year losses to claim refunds against tax paid in the last two years.

Finally, retailers were also supported by new, strict measures against low-cost offshore retailers, such as Shein and Temu, which will bring increased ACCC scrutiny on product safety and a crackdown on “unfair” online trading practices.

These fiscal changes were joined by Chalmers’ announcement of a “single national market”, which he claims would make it easier to run a business across states and territories by harmonising state retail tenancy frameworks.

“It’s clear there are steps in the right direction, but there is a long way to go to meaningfully improve competitiveness, reduce business costs, and lift productivity,” Australian Retail Council (ARC) chief economist and chief policy officer, Glenn Fahey, said. “It is critical the government elaborates on its plan for incentivising states and territories to seize the moment for national harmonisation.” 

The country’s small businesses also recognised green shoots of positivity.

Skye Cappuccio, CEO of the Council of Small Business Organisations Australia, said there were some “encouraging signs” in the budget for smaller businesses, but it would do little to stave off the effect of the RBA’s recent rate rises.