Small business owners have long carried the load of innovation, local employment, and community connection, but they haven’t always had the same protections or financial access as larger players. Now, two major updates from the federal government are set to change that, giving smaller businesses more room to grow and fairer treatment in the market.

Easier Access to Business Credit Extended Until 2026

Running a small business often requires quick financial decisions, and the last thing owners need is a mountain of red tape when trying to access funds. That’s why the federal government has announced a two-year extension to a key exemption in responsible lending laws, allowing eligible small businesses to continue applying for finance with fewer barriers.

The exemption, originally introduced in 2020, applies to businesses with fewer than 100 employees and less than $5 million in turnover. It allows lenders to provide credit for genuine business purposes without enforcing the same checks used in consumer lending.

Now extended until 3 October 2026, the programme will give government regulators more time to collect data on its effectiveness and allow thousands of small businesses to continue accessing finance at critical times.

“By extending the programme, we’ll gather more data to ensure the changes are safe and there are no adverse effects,” said Assistant Treasurer Stephen Jones.

Banking leaders have welcomed the move. Acting CEO of the Australian Banking Association, Vanessa Beggs, highlighted the demand for capital among business owners.

“One in four SMEs are looking to invest more in their business. This extension means they can do so with confidence, knowing the credit system supports their growth plans.”

New Protections Against Unfair Trading Practices

In addition to supporting finance access, the government has announced a new consultation process to crack down on unfair trading practices, particularly those used by dominant companies against smaller suppliers or partners.

While laws already exist to address unfair contract terms, businesses have been finding ways to sidestep these rules through verbal agreements or coercive behaviour that isn’t formally documented. That legal gap may soon be closed.

The consultation will explore whether a broad principles-based ban on unfair trading behaviour should be introduced, and whether specific tactics, like intimidation, unreasonable commercial pressure, or strategic non-payment, should be banned outright.

“A dominant firm shouldn’t get to ‘negotiate’ by holding all the cards,” said Assistant Minister for Competition, Andrew Leigh. “When competition turns into coercion, it’s not competition at all.”

Small business ombudsman, Bruce Billson, also praised the move, noting that some companies have knowingly used the law’s blind spots to act unfairly without consequences.

What This Means for Small Business Owners

Together, these measures send a strong message: the government is serious about protecting small businesses, both financially and legally.

• If you’re planning to grow or invest, you can now access credit with fewer hoops to jump through (at least until 2026).
• If you’ve been squeezed by unfair behaviour from a bigger business partner, new legal protections may soon be in place to support you.

For business owners juggling risk, cash flow, and growth ambitions, this is a welcome shift in the landscape. Need help exploring your finance options or preparing for expansion? Get in touch with our team at Peel Finance Brokers today. We’ll help you find the right solution to support your business with confidence.

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