The Federal Government delivered the Federal Budget on Tuesday 14th May 2024.
Key Announcements made in this budget
Stage 3 Tax Cuts
The Government’s changes to the Stage 3 tax cuts are a key element of the Budget. They broaden the benefit of the original tax cuts, halving the tax break for wealthier taxpayers and increasing the benefit for those on lower incomes.
Cost of Living – Energy Bill Relief
The Budget’s key new cost-of-living measure is a new energy bill relief payment, extending existing energy relief measures. From 1 July 2024, the Budget provides rebates of $300 to every household and $325 to around one million small businesses.
Small Business Support – Instant Asset Write Off
The Government announced it will continue to improve cash flow and reduce compliance costs for small businesses by extending the small business $20,000 instant asset write-off (IAWO) by 12 months until 30 June 2025.
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.
Tax Administration
Indexation of the Higher Education Loan Program (and other student loans) debt will be limited to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023.
The ATO will be given a statutory discretion to not use a taxpayer’s refund to offset old tax debts on hold.
Please find below links to the full 2024-25 Federal Budget Overview and Tax & Superannuation Overview. If you have any queries or would like to discuss any of the announcements made in this budget, please contact your DFK Nugents advisor or call our office on 03 9693 5000.
