The Australian Government delivered its Federal Budget 2025-26 on 25 March 2025, which included initiatives to boost the visitor economy including tax cuts and support for small businesses.

The nation’s peak body for the tourism, transport and aviation sectors, Tourism & Transport Forum (TTF), said it welcomed the Australian Government’s commitment to easing cost-of-living pressures through tax cuts, energy rebates, higher wages and an increase of medical bulk billing.

TTF CEO Margy Osmond said: “A tax cut is more than just financial relief. It’s an opportunity for Australians to take a step back, unwind, and prioritise their wellbeing.

"More disposable income gives Australian households the freedom to save, invest, and most importantly, take a well-earned break. This financial breathing room will give our nation the opportunity to do what 75 per cent of Aussies plan to do this year. And that’s go on that anticipated holiday.”

However, TTF and Restaurant & Catering Australia (R&CA) noted the Federal Budget did not include any significant new support for the visitor economy or hospitality.

R&CA CEO Suresh Manickam said the energy rebate was welcome but called for a sustainable pathway forward. He said the instant asset write-off assumes that businesses are in a financial position to purchase assets to begin with – which is not the case in hospitality".

Mr Manickam said announcements in training and education were also welcome, but more needed to be done.

"The need to reskill and retrain a sector that has not yet returned to pre-Covid employment remains paramount,” he said.

The Federal Budget included a $195.9 million operating budget for Tourism Australia in 2025-26 to promote Australia as a destination for leisure and business events travel.

The Australian Tourism Export Council (ATEC) welcomed the Australian Government’s continued support for Tourism Australia, with sustained funding confirmed in the Federal Budget.

ATEC Managing Director Peter Shelley said: "Securing consistent funding for Tourism Australia is essential for effectively promoting destination Australia, which is crucial for the industry's recovery and long-term growth.

“As the industry rebuilds in a changed global environment, businesses are adapting to more diverse markets and travellers, which require not just strong marketing, but targeted support to compete and grow."

Mr Shelley acknowledged the Federal Budget’s support for Rex Airlines was a positive step that recognised the critical role regional aviation plays in supporting Australia’s tourism industry, but called for broader support for tourism initiatives and business recovery.

“As one of Australia’s leading export sectors, tourism needs targeted investment to rebuild international distribution networks, strengthen aviation access, and address persistent workforce shortages," he said.

The Australian Government will invest $23.9 million over five years from 2024–25 to strengthen the Indigenous Procurement Policy, and $3.4 million over three years from 2025–26 to establish a place‑based business coaching and mentoring program for First Nations businesswomen and entrepreneurs.

NSW Tourism Association CEO Natalie Godward said: “These initiatives provide a strong foundation for growth, particularly in regional and Indigenous tourism.

"However, to fully capitalise on these investments, it is crucial that Australia prioritises international visitor recovery by enhancing global marketing efforts."

Small business support

The Australian Government is extending energy bill relief for small businesses for six months to the end of 2025; supporting the hospitality sector and alcohol producers by pausing indexation on draught beer excise and excise equivalent customs duty rates; and providing cash flow support to small businesses through extensions to the instant asset write-off.

In addition, the Australian Government said it expects around 1.5 million sole traders to benefit from the tax cuts for every taxpayer.

Business NSW said it welcomed additional income tax cut and a further $150 in energy rebates for households and small businesses.

Business NSW CEO Daniel Hunter said: "Small and medium-sized enterprises must be at the centre of any serious economic growth agenda and at the forefront of Australia’s response to rapidly changing global trade and geopolitical conditions."

Protecting national parks, boosting arts and culture and increasing accessibility

The Federal Budget included $55.2 million over four years from 2025–26 (and $14.1 million per year ongoing) to renew lease arrangements with the Traditional Owners of the jointly managed National Parks including Booderee in Jervis Bay.

Funding will support the Australian Government’s commitment to restore trust and confidence in the management of Commonwealth national parks, as detailed in the Nature Positive Plan: better for the environment, better for business.

The Australian Government has also committed $17.1 million over four years from 2024–25 to establish the Accessible Australia initiative, to increase accessibility in community spaces across Australia through accessible infrastructure projects at national parks, beaches and play spaces.

The Revive Live program will be extended with $8.6 million in funding for 2025–26 to support Australian live music venues and festivals showcasing Australian bands and artists. This funding will have a strong focus on activities that improve accessibility and inclusion at live music performances.

View the Federal Budget 2025-26 papers here.