The 2024-25 Federal Budget was release last night (14 May 2024) by Federal Treasurer Dr Jim Chalmers. On release, he stated a forecasted surplus of $9.3 billion in 2023-24, to be followed by deficits of $28.3 billion in 2024-25 and $42.8 billion in 2025-26.
The government has 5 main priorities for this Budget:
- Helping with the cost of living;
- Building more homes;
- Investing in a Future Made in Australia – and the skills and universities needed, to ensure it becomes reality;
- Strengthening Medicare and the care economy; and
- Responsible economic management (set to produce yet another surplus and help fight inflation).
The biggest part of the Budget is the introduction of tax cuts for every Australian, rewriting the Stage 3 tax cuts proposed previously.
| Rate | 2023-24 | 2024-25 |
| Nil | $0 – $18,200 | $0 – $18,200 |
| 16% | N/A | $18,201 – $45,000 |
| 19% | $18,201 – $45,000 | N/A |
| 30% | N/A | $45,001 – $135,000 |
| 32.5% | $45,001 – $120,000 | N/A |
| 37% | $120,001 – $180,000 | $135,000 – $190,000 |
| 45% | $180,000+ | $190,000+ |
A welcome (extended) relief came in the form of the new energy bill relief payment. From 1 July 2024, households will receive the energy rebate of $300, whereas approximately one million small businesses will receive $325. In addition, the Budget will also increase the maximum rates of Commonwealth Rent Assistance – the first back to back increase in 30 years.
Small businesses have been given an extension of the $20,000 instant asset write off now until 2025.
The Treasurer, Dr Jim Chalmers estimates another surplus of $9.3 billion this year, although this has been supplemented by the pledge of cost of living relief and the careful control to avoid inflation pressure. This Budget will maintain their stance on economic growth and stability, even in the face of projected commodity prices and muted job market. Inflation is expected to decrease gradually from the high in 2022-23 of 6% to much lower at 2.75% in 2024-25 and 2025-26.
For more information into each section of the Budget, please refer to our below links:
- Budget Overview;
- Easing Cost of Living Pressures Factsheet;
- A Future Made in Australia Factsheet;
- Delivering a Better Deal for Small Businesses Factsheet.
If you have any queries, or would like a consultation – please contact our team to ensure we can empower you and your business in 2024-25.