The 2024-25 Federal Budget, presented by Treasurer Dr. Jim Chalmers, described as a responsible and supportive approach, forecasts a second consecutive surplus of $9.3 billion. Here are key highlights for business owners and individuals. For more information, download our May 2024 Federal Budget Summary.

For business owners:

  • The $20,000 instant asset write-off for small businesses using simplified depreciation rules will be extended for an additional 12 months.
  • Starting July 1, 2024, one million qualifying small businesses will benefit from a $325 electricity bill rebate
  • A tax incentive for hydrogen production will be accessible to renewable hydrogen producers from 2027–28 to 2040–41.
  • The Commissioner of Taxation will have discretion not to offset a taxpayer’s refund against old tax debts if those debts were placed on hold prior to January 1, 2017,
  • Tariffs deemed a nuisance on various imported goods will be eliminated starting July 1, 2024

For individuals:

  • Starting July 1, 2024, 13.6 million Australian taxpayers will benefit from a permanent tax reduction.
  • Medicare Levy is applied at increased thresholds for Australian taxpayers to alleviate cost of living pressures.
  • Carer payment recipients will enjoy increased flexibility regarding their participation obligations.
  • From June 1, 2023, the indexation of the Higher Education Loan Program (and other student loans) debt will be capped at the lower of either the Consumer Price Index or the Wage Price Index.
  • From September 20, 2024, single recipients with a partial capacity to work ranging from zero to 14 hours per week will be eligible for the higher rate of Jobseeker payment.
  • From September 20, 2024, the maximum rates of the Commonwealth Rent Assistance (CRA) will rise by 10% to alleviate rental affordability issues for recipients.

Superannuation:

  • Superannuation will be paid on government-funded paid parental leave for parents of babies born or adopted on or after 1 July 2025.
  • Starting July 1, 2024, the Fair Entitlements Guarantee Recovery Program will be adjusted to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy

For our complete 2024/25 summary, please download here.

To learn more about how the Federal Budget may affect you or your business, please contact us on +61 2 9375 1200.