The 2024-25 Federal Budget has been released. We answer the question, “What is in it for me?” However, very little this year except for electricity subsidies and already legislated tax cuts that got reallocated to lower income earners and increases bracket creek. Points to note include:

Individuals

  • Already announced and legislated tax cuts that increase bracket creep going forward with the new tax rates from 1 July 2024 of:
    • $0 to $18,200 – 0%
    • $18,201 to $45,000 – 16% (Down 3%)
    • $45,001 to $135,000 – 30% (Down 2.5%)
    • $135,001 to $190,000 – 37%
    • $190,000+ 47%
    • Plus 2% base medicare levy on the above rates
  • Electricity subsidy of $300 for each household being $75 paid for each quarter in the 2025 Financial Year.
  • Government to pay Superannuation on paid parental leave from 1 July 2025.
  • Social Security deeming rates to be frozen for a further 12 months for deemed income on investments for eligibility for Centrelink benefits.
  • Paid Parental Leave is already legislated to increase by 6 weeks over the next 3 years. Paid Parental Leave will increase to 22 weeks from 1 July 2024, 24 weeks from 1 July 2025 and 26 weeks from 1 July 2026.

Business

  • Instant Asset Write Off of capital assets up to the limit of $20,000 has been extended for 1 year to 30 June 2025. This applies for small businesses with a turnover of under $10 million. It could return to $1,000 from 1 July 2025. However, it is likely to be extended at a higher amount than $1,000.

Superannuation

  • The Super Guarantee rate to increase to 11.5% on 1 July as previously legislated.

The Federal Government is estimating a $9.3 billion surplus for this 2024 Financial Year, a $28 billion deficit for the 2025 Financial Year and a $42 Billion deficit for the 2026 Financial Year. Net debt is estimated at $500 Billion for the 2024 Financial Year and expected to increase to $553 for the 2025 Financial Year. The Government is in a position of needing to not drive up inflation with their spending. There are concerns that their level of spending in this budget over the next 2 to 3 years could keep inflation up and keep pushing cost of living pressures that are affecting people. We will have to wait and see how the spending measures over the next 2 years affect the economy.

These are only the main points. Please click here for the NTAA Budget Summary and click here for the CPA Australia Budget Summary.

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