THE 2024-25 FEDERAL BUDGET HIGHLIGHTS

On Tuesday 14th May Treasurer Dr Jim Chalmers handed down the 2024-25 Federal Budget. You can find the full budget papers at www.budget.gov.au. This budget has been described as a “responsible budget that helps people under pressure today”. The main priorities of this budget are:  

  • Assisting with the cost of living

  • Building more housing

  • Investing in skills and education

  • Strengthening Medicare

  • Responsible economic management to help fight inflation.

The Numbers

  • $22.1 billion surplus in 2022-23.

  • A Forecast surplus of $9.3 billion for 2024/25, the first back-to-back surplus in almost 20 years.

  • GDP Growth of 1.75% in 2023-24

  • Unemployment rate expected to increase to 4.5% in 2024-25

  • Inflation is expected to drop from 3.5% to 2.75% in 2024-25

  • Wage growth of 3.25% forecast for 2024-25.

Cost of living Assistance

  • Tax cuts: All 13.6 million Australian taxpayers will get a tax cut, averaging $1,888 or $36 a week.

  • Energy bill relief: $3.5 billion for $300 in energy bill relief to all Australian households; plus relief for one million small businesses.

  • Student debt: Waiving $3 billion in student debt for more than 3 million Australians to make student loans fairer.  

  • Rent assistance: $1.9 billion to increase Commonwealth Rent Assistance by a further 10 per cent, benefiting nearly 1 million households.  

  • Cheaper medicines as part of the up to $3 billion agreement with community pharmacies.

Housing

  • New housing investment of $6.2 billion, for a total of $32 billion under this Government.

  • An additional $1 billion to help states and territories build more homes.

  • More student accommodation.

  • $16.5 billion additional funding for infrastructure projects to connect our cities and towns.

Superannuation

  • 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 Fair Entitlements Guarantee Recovery Program will be recalibrated to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.

Support for Small Business

  • Instant asset write-off: The scheme is extended for another year to 30 June 2025, allowing businesses with turnover under $10 million to deduct the full costs of eligible assets under $20,000.

  • Workplace Relations: The Government will provide $111.8 million over four years from 2024–25 (and $12.4 million per year ongoing) to support the progression of the Government’s workplace relations agenda. Funding includes $20.5 million over four years from 2024–25 (and $5.1 million per year ongoing) to boost funding for the Office of the Fair Work Ombudsman to support small business employers to comply with recent changes to workplace laws.

  • Small business debt helpline: $10.8 million over two years from 2024–25 to extend the Small Business Debt Helpline and the NewAccess for Small Business Owners program to continue to provide financial counselling and mental health support for small business owners.

GST

  • Refunds of indirect tax (including GST, fuel and alcohol taxes) will be extended under the Indirect Tax Concession Scheme.

Excise and customs duty

  • Tariffs identified as a nuisance across a range of imported goods will be removed from 1 July 2024.

  • The start dates for certain components of a measure to streamline excise administration for fuel and alcohol announced in the Coalition government’s 2022–23 Budget will be deferred.

HELP WHEN IF YOU NEED IT

At Evolution we pride ourselves on clear and honest conversations. Real language without the financial jargon. If you need clarification on how you may be effected by changes announced in the budget be sure to contact your financial adviser.

Monique Wild