Labor’s Small Business Strategy Ahead of Victorian Election
The Carroll government balances existing grant programs with new structural campaign pledges for SMEs.
1Election Campaign Strategy
The Carroll Labor government is campaigning for a fourth consecutive term with a focus on small business support. Their strategy blends official government announcements delivered during the current term with new, conditional campaign pledges. These measures aim to address immediate operational costs and long-term structural challenges faced by Victorian small enterprises.
2Existing Grant Programs
In August, the government launched two grant programs worth $10,000 each to support local business associations and diverse owners. These initiatives, funded through the 2026-27 budget, include the Multicultural Business Skills Fund and the Shop Local Business Fund. Such programs prioritize community engagement and skill development for local traders and councils.
3Operational Support Measures
The government allocated $19 million to reduce red tape and $14 million toward AI investment. Additionally, they appointed Greg Jennings as the new Victorian Small Business Commissioner for a three-year term. A $400,000 budget increase allows the Commission to hire more Dispute Resolution Officers to handle rising business-related conflicts effectively.
4Manufacturing and Supply Chains
Treasurer Colin Brooks announced over $750,000 in Supply Chain Uplift Program grants for 11 manufacturers. Since 2022, the government has invested nearly $4 million to help 53 small and medium businesses secure contracts with major defence firms. This program remains a cornerstone of the government’s efforts to integrate SMEs into larger supply chains.
5Proposed Tax and Toll Relief
Labor has pledged to waive stamp duty for businesses restructuring out of discretionary trusts to mitigate federal tax changes. Furthermore, they promised a $30 weekly toll cap for small business fleets of up to five vehicles. These rebates, reaching $350 per vehicle weekly, target relief on major routes like CityLink and EastLink.
6Workplace Policy Adjustments
New work-from-home protections have been delayed until July 2027, with small businesses receiving an additional six-month grace period. This decision follows a shift in leadership from Jacinta Allan to Ben Carroll in August. The government previously rejected total exemptions for small businesses, opting instead for this phased implementation timeline for employers.
7Future Growth Commitments
Labor pledged $350 million toward manufacturing to create 5,000 jobs through co-investment. They also plan to standardize local business laws across councils and create a single Service Victoria platform for approvals. A new Growth Area Entrepreneur Club is proposed for Melbourne’s northern suburbs to foster local innovation and business development.
8Structural Policy Implications
There is a clear distinction between delivered grants and proposed structural changes. While current measures provide modest, ongoing support, the campaign pledges address significant tax and regulatory hurdles. The implementation of these larger commitments remains entirely contingent on the election outcome and the government’s ability to pass necessary legislation next term.
Original article: Dynamic Business — Labor’s Small Business Strategy Ahead of Victorian Election