Budget 2025-2026: Money for pandas, but not for startups? 

By Des Hang, CEO of Carbar

We may be better off becoming a zoo keeper in Australia than a startup founder. The Federal Budget found funds for pandas in Adelaide, but many of the big ticket startup-impacting items flagged ahead of the budget, like a re-examination of R&D Tax Incentives, were given a firm swerve. In their place, we got reform to encourage overseas investment into business – albeit via yet another new committee. And a continued focus on the energy transition. In my view the non-compete clause reform won’t really affect the startup ecosystem that much either. Well, at least not for us, as we don’t practice in poaching staff. There’s a broader debate here as to how enforceable non-competes are in Australia anyway? If a large company attempts to poach from a startup’s team to copy what they may be launching, and that member is under non-compete, are they already enforceable in a way that easily allow us to pursue them for it?

Surprisingly, this year’s Federal Budget is light on strange commitments from the Federal Government. Past budgets have seen funds to go remote symphony orchestras, and initiatives to correctly label vegan food. But these tend to sting as founders try their best to build businesses that will reshape Australia, but the Federal Government steers its focus towards other more niche interests.

That’s not to say the budget is all bad. Tax cuts will flow onto consumer spending, and the focus on cutting red tape and improving productivity is welcome — especially if that means a closer look at government services offered to the business community.

But it’s getting harder and harder to see how the Federal Budget will genuinely impact founders or anyone planning to innovate in Australia. Perhaps this is the goal?| But it’s an alarming trend with State Government’s nationally not being in a fantastic position to pick up the slack.