What does the 2024-25 Budget mean to me?

Individuals

  • Further tax relief from 1 July 2024:

    • 16% for income between $18,201 to $45,000

    • 30% for income between $45,001 to $135,000

    • 37% for income between $135,001 to $190,000

    • 45% for income over $190,000

     

  • Medicare Levy remains at 2%

  • Medicare levy low-income thresholds have increased from 1 July 2023:

    • $26,000 for singles

    • $43,846 for families (+$4,027/child)

    • $41,089 for single seniors

    • $57,198 for senior families

  • Income thresholds for Medicare Levy Surcharge (MLS) will increase from 1 July 2024

  • Debt relief for HELP and other student loans by changing the calculation of HELP indexation, reducing the indexation rates from 7.1% to 3.2% in 2023 and 4.7% to around 4% in 2024

Small Businesses

  • Extending the $20,000 Instant asset write-off scheme for another year to 30 June 2025

  • $325 rebate on 2024-25 energy bills for eligible small businesses

  • The Small Business Energy Incentive scheme will end on 30 June 2024

  • Lower tax-related administrative burden for small businesses:

    • Small businesses will be permitted to authorise their tax agents to lodge multiple Single Touch Payroll forms on their behalf from 1 July 2024;

    • Small businesses will be permitted up to four years to amend their income tax returns from 1 July 2025;

  • Introducing Production Tax Incentives from 2024-25 to accelerate investments in Future Made in Australia priority industries such as renewable hydrogen, green metals and low-carbon liquid fuels

Superannuation

  • Increase in the minimum superannuation guarantee (SG) rate from 11% to 11.5% from 1 July 2024

  • The general concessional contributions cap will increase from $27,500 to $30,000 for all individuals from 1 July 2024

  • Eligible parents will receive the Superannuation Guarantee of 12% (the rate for 2025-26) on their Paid Parental Leave payments for births and adoptions on or after 1 July 2025

  • The concessional tax rate for Super account balances above $3 million is to be increased to 30% from 1 July 2025

  • Superannuation guarantee to be paid on Employees’ payday from 1 July 2026

Housing

  • $300 energy bill rebate for each household from 1 July 2024

  • Commonwealth Rent Assistance rate further increases by 10%

  • Allowing foreign investors to purchase established Build-to-Rent developments with lower foreign investment fees

  • More housing support for vulnerable Australians by delivering more on social housing

For full details on the federal budget, visit the 2024-25 Budget website.

Alternatively, feel free to contact one of our specialists today to make a smart financial decision with the new budget.