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Last night, the Federal Budget for the upcoming year was delivered by Jim Chalmers, and there’s a lot for us to chew on! Check out the summary of main points and key measures below to see what may impact you, your family, and/or your business.

Please note: The information set out below is based on the data and budget information announced by the Commonwealth of Australia concerning the proposed 2024 – 2025 Commonwealth Budget, and although the changes outlined have been proposed by the Government, the proposed legislative changes that are necessary to implement the proposed Budget are not yet finalized and may be subject to change as the relevant legislation implementing the changes proposed by the Budget passes through parliament.

OVERVIEW

TAX: STAGE THREE TAX CUTS
From July 1 2024, 13.6 million taxpayers will benefit from this with an average of $1888 per year per person.  A weekly boost of $36 can make a meaningful difference for many people.

SUPERANNUATION: PAID PARENT LEAVE
From July 2025, there’ll be an allocation of $1.1billion over four years to pay superannuation on government-funded Paid Parental Leave (PPL); along with an additional 12% superannuation contribution for eligible parents based on their PPL.

STUDENT DEBT: HELP/HECS DEBT
A retrospective adjustment will be made to above-trend indexation of student HELP debt, and HECS indexation will be indexed to CPI or Wage Price index, whichever is lower.

SMALL BUSINESS SUPPORT
 – INSTANT ASSET WRITE-OFF
Extending the instant asset write-off scheme for another year, until 30 June 2025, which will allow businesses with turnover under $10 million to deduct the full costs of eligible assets valued under $20,000.

 – SMALL BUSINESS DEBT HELPLINE
An allocation of $10.8 million over two years from 2024-2025 to extend the Small Business Debt Helpline and the NewAccess for Small Business Owners, for the continued provision of financial counselling and mental health support for small business owners.

 – E-INVOICING
An allocation of $23.3 million to support increased e-invoicing to improve cash flow, combat payment redirection scams, and boost productivity for small businesses.

COST OF LIVING SUPPORT
 – ENERGY BILL RELIEF
From July 1 2024, this initiative will provide support for both small business and households with a direct injection of $325.00 for eligible small businesses and $300.00 for every household.

 – RENT ASSISTANCE
Increasing the maximum rates of assistance by 10% will provide support/relief to almost one million households.  This initiative is a cost of $1.9 billion dollars over five years from 2023-2024.

PLUS SO MUCH MORE, INCLUDING AREAS SUCH AS :

• Future made in Australia
• Housing
• Skills and innovation
• Artificial Intelligence
• Infrastructure and Transport
• Defence
• Energy and Environment
• Support for regions
• Digital ID

DISCLAIMER: This summary is intended as general information only and is not intended to constitute taxation or financial/superannuation planning advice. The application of many laws, including taxation laws, are dependent upon an individual’s personal circumstances. You should, therefore, not make any investment or other financial decisions in reliance upon the information set out in this correspondence and should seek professional advice on the financial, legal and taxation implications before making any such decisions.

Reference: Federal Budget 2024 – 2025: Business Analysis
www.businessnsw.com