2024-25 Federal Budget Review

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Treasurer The Hon. Dr Jim Chalmers, delivered Prime Minister Anthony Albanese’s Government’s (‘Government’) potential final budget on Tuesday, 14 May 2024. Based on the interests of our clients, Indiana Advisory has written a summary of what we think are the critical features of this year’s Budget.

National Energy Bill Relief

  • Households will receive a one off $300 rebate from 1 July 2024
  • Small businesses will receive a $325 rebate via four quarterly instalments of $81.25 over 2024–25.

$20,000 instant asset write-off

The $20,000 instant asset write-off has been extended to 30 June 2025. This is available for small businesses with turnover of up to $10m. Assets costing >$20,000 must be depreciated using the ‘small business depreciation pool’.

Reducing Student and Apprenticeship Debts

The indexation on HELP, Apprenticeship Support Loans and other student loans will be capped at an indexation rate to the lower of either the Consumer Price Index (CPI) or the Wage Price Index.
The Government will backdate this relief 1 June 2023.
This will result in a reduction in the indexation rate applied from 7.1 per cent to 3.2 per cent in 2023 and 4.7 per cent to 4 per cent (estimated) in 2024.

Income tax cuts for individuals

The Government has legislated permanent tax cuts for individuals beginning from 1 July this year. This tax cut will provide an average savings of $1.9k annually or $36 weekly increasing an employee’s take home pay. Actual changes to the tax rates below:

  • Reduce the 19 per cent tax rate to 16 per cen
  • Reduce the 32.5 per cent tax rate to 30 per cent
  • Increase the income threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
  • Increase the income threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.

$41.7m over four years to support small business

The Govt. to support small business with $41.7m over four years for the following initiatives:

  • Improving payment times by providing increased resourcing for the Payment Times Reporting Regulator making sure big businesses pay small businesses reliably and fairly
  • Extending the NewAccess for Small Business Owners program which provides free and confidential mental health support for owners and extending the Small Business Debt Helpline
  • $2.6m in funding to Small Business and Family Enterprise Ombudsman
  • $3m in funding to remake and improve the Franchising Code of Conduct.

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