2024-25 Budget Breakdown

Despite the likelihood of this being the last budget before the next election it wasn’t the most noteworthy budget in terms of promises and new measures.  

Like normal the government has promised to invest in all sorts of things like infrastructure (that's fancy talk for roads and bridges), education (because knowledge is power), housing and healthcare (those are pretty important things to worry about).  

There are still some key measures to go through and the impacts will be felt by everyone in the economy not just a select few.  So, let’s go through them:

Business:

• Instant asset write-off for eligible businesses extended by 12 months until June 30, 2025, allowing them to immediately deduct the cost of purchasing assets up to $20,000.  Remember this is $20,000 per asset the $20,000 is not an annual limit of what you can claim. To be an eligible     business turnover must be under $10M per year.
     
     
• Power Bill Rebate of $325 for eligible Small Businesses will apply on the 2024-25 electricity bills.      
     
     
• Critical Minerals and Hydrogen Production tax incentives to be introduced from 01/07/2027.  No clear details on this year other than it is to benefit businesses in the critical minerals and hydrogen space. Will have to wait for them to flesh this one out more.
     
     
• Future Made in Australia program will be providing a lot of funding and grants over the coming years to try and spur on manufacturing in Australia. We have seen several businesses locally already capitalising on these. Our next event we are holding tells you how to get in on this too so keep a watch out for that to be announced soon.
     
     
• There are multiple changes from here that will impact business via the implementation required in their payroll or superannuation.
     
     

Income Tax:

• Personal income tax rates are dropping and some of the thresholds are rising from 01/07/2024.  Every individual earning enough money to pay tax will win on this one.  If you want to know the specific saving for you then reach out we can work it out for you or alternatively you can roughly calculate it using this government created calculator - Tax cuts for every Taxpayer.

• Medicare Levy threshold is increasing with indexation from 01/07/2024 which will impact low income earning singles and families.

• Senior And Pensions Tax Offset (SAPTO) threshold is increasing from 01/07/2024 which will impact taxpayers who are pension age or other Australians who receive certain pensions/allowances. 

Superannuation:

Contribution Caps are increasing with indexation from 01/07/2024

 
• Claiming a tax deduction the limit increases from $27,500 to $30,000.
 
• Non-claiming a tax      deduction the limit increases from $110,000 to $120,000 or up to $360,000 using the bring forward rule if eligible.
 

Great for anyone who is maximising their superannuation caps.  Reach out if you need help recalculating what your salary sacrifice or contribution amounts should be once these changes take effect.

• Superannuation Guarantee is increasing to 11.5% from 01/07/2024 with the plan still for this to increase to 12% from 01/07/2025. Great for anyone eligible to receive superannuation from working.
     
     
• Superannuation will be paid on Paid Parental Leave Payments from 01/07/2025.
     
     
• Payday Superannuation is still slated to come into effect from 01/07/2026.  Employers will be required to pay superannuation at the time of paying the employee wages.  
     
     
• Additional 15% tax for superannuation balances over $3M is still in progress for 01/07/2025 but has not passed as legislation yet so there could be changes still.

Social Security Payments:

• Deeming rates used for income testing of certain assets and investments held will freeze until 30/06/2025 the big winners of which will be certain retirees that are on the pension.
     
     
• Rent Assistance will increase the maximum rate to assist those renters with rising housing costs.
     
     

Education:

·        The indexation rate for HELP/VET etc. loans will be reduced to 3.2% from7.1% in 2023 and 4% from 4.7% in 2024. Loans will automatically be credited for overcharged indexation based on the prior rates.

·        Students studying Nursing, Midwifery, Social Work and Teaching will now be paid for their practical placement from July 2025.

·        More spending on TAFE placements for housing and construction to allow20,000 more places.

·        New Energy Apprentice Payment available for apprentices studying ineligible clean energy fields.

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Quality of Life:

• Fast tracked passports can be applied for at an additional fee from 01/07/2024.
     
     
• A temporary freeze is in place for the indexing of the Pharmaceutical Benefits Scheme (PBS) will mean cheaper medicine across the board which is a win for everyone.
     
     

So, there you have it.  Several measures there designed to impact nearly everyone as the whole economy struggles with inflation at the moment.  If you have questions based on your situation about any of these measures let us know so you can get the maximum benefit.

Cheers, Inspire Accounting.

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