The Budget strongly emphasizes easing cost-of-living pressures.
The 2024/25 Federal Budget was handed down last night by the Treasurer Jim Chalmers. As expected, the Budget strongly emphasizes easing cost-of-living pressures.
To that end, in addition to the previously legislated personal income tax cuts, the Government notably announced an initiative to deliver energy bill relief for all Australian households and certain small businesses.
The key Federal Budget proposals include:
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Power Bill relief - The Government has announced that, starting on 1 July 2024, it will provide “Power bill relief” via a $300 energy rebate to every Australian household, which will be automatically applied to their electricity bills. Similarly, certain eligible small businesses will receive a $325 energy rebate on their electricity bills throughout the 2024–25 year. This small business rebate will be available to approximately one million businesses on a small customer electricity plan.
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Superannuation on Paid Parental Leave (PPL) - The Government will pay superannuation on Government-funded Paid Parental Leave (PPL) for births and adoptions on or after 1 July 2025.
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Payday superannuation & Super Stream - The Australian Government has announced the allocation of $60.0 million over four years, starting from 2024-25, to bolster the Productivity, Education and Training Fund.
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Personal Income Tax – Cost of Living Tax Cuts - The Government has already legislated permanent tax cuts starting on 1 July, 2024.
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Increased Medicare levy low-income thresholds - The Government has increased the Medicare levy low-income thresholds for singles, families, seniors and pensioners from 1 July 2023.
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Small Business Support – $20,000 instant asset write-off extended - The Government has announced that it will extend the $20,000 instant asset write-off by 12 months until 30 June 2025.
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Freezing of Social Security Deeming Rates – Extended - The Government has announced that it will extend the current freeze on the Social Security deeming rates at their current levels for a further 12 months – until 30 June 2025.
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Please find below access to the Federal Budget Summary 2024 outlining the Federal Budget proposals. Kindly note these are only proposals and the Budget announcements still need to be passed by both the House of Representatives and the Senate before they become law.
Should you wish to discuss the announcements and the possible implications in relation to your financial planning strategy, please free to contact our office on 03 9695 5600 or email finplanning@required.com.au.