The Budget 2024-2025

The Treasurer Dr Jim Chalmers is promising that inflation will decline by 0.75% as a direct result of the 2024-25 Federal Budget initiatives that include energy relief for all households, extension of the instant asset write off, a boost to Commonwealth Rent Assistance, the freezing of the maximum co-payment on the Pharmaceutical Benefits Scheme and student debt relief.

Key initiatives include:

1.       The Government will extend the $20,000 instant asset write off by 12 months to 30 June 2025 in an effort to improve cash flow and reduce compliance costs for small businesses.

2.       The ATO Personal Income Tax Compliance Program will be extended to 1 July 2027 to allow the ATO to continue to target what it has identified as key non-compliance areas, including overclaiming of income tax deductions, incorrect reporting of income and inappropriate tax agent influence.

3.       From 1 July 2024, more than 10 million households will receive a total rebate of $300 and eligible small businesses will receive $325 on their electricity bills throughout the year.

4.       The Government is delivering tax cuts for all 13.6 million Australian taxpayers from 1 July 2024 to ease cost‑of‑living pressures for middle Australia, return bracket creep, support women and boost labour supply.

5.       Significant longer term tax incentives for renewable investments were announced.

6.       The Government is committing $17.3 million to mobilise private sector investment in sustainable activities. This includes extending Australia’s sustainable finance taxonomy to the agriculture sector and developing a labelling regime for financial products marketed as sustainable.

7.       Superannuation will be paid on Government‑funded Paid Parental Leave (PPL) for parents of babies born or adopted on or after 1 July 2025. The Government will provide $1.1 billion over the forward estimates, with payments made annually to individuals’ super funds from1 July 2026.

8.       On 1 July 2024, the superannuation guarantee (SG) rate is increasing from 11% to 11.5%. 

For a more detailed summary of the budget, you can download the full document here. 

If you have any questions regarding the budget and how it may affect you, please contact our team today on 8522 4500.