Federal teal MPs have warned the Albanese government has “dropped the ball” on helping small business with independent MP Zali Steggall warning Labor has been too focused on appeasing the unions, as growing costs trigger a rising wave of business failures.

But the teals, expected to play a crucial role in next year’s federal election, also hit out at the Coalition for failing to support sensible changes such as the 100-plus amendments that they moved in relation to the government’s workplace laws, claiming that petty politics is dominating sensible policy.