Federal Budget 2024-2025
Summary overview
On 14 May 2024, Treasurer Jim Chalmers handed down the 2024-25 Budget with a primary focus on inflation in the near term and growth in the medium term. A modest surplus of $9.3 billion is anticipated for the 2023-24 year.
Further cost of living relief has been announced to assist families and small business.
A cornerstone feature of this budget is the Government's “Future Made in Australia” policy, which will result in substantial investments in national and economic security imperatives, energy transition and education.
Here are some essential highlights extracted from the government’s Budget 2024-2025 Report to assist you with the key tax takeaways from the Budget. For a comprehensive understanding, delve into the Federal Budget overview.
Easing cost-of-living pressures
Many Australians are under pressure from the cost of living. That’s why the Government is delivering tax cuts for all Australian taxpayers from 1 July 2024. In addition to these tax cuts, this Budget provides a further $7.8 billion in cost-of-living relief.
This Budget builds on the Government’s initiatives to provide cheaper child care, cheaper medicines, increased bulk billing incentives, energy bill relief, boosts to working-age payments, student payments and Commonwealth Rent Assistance, and expanded eligibility for the Parenting Payment (Single).
In this Budget, the Government is providing more support for Australians doing it tough.
The plan includes:
Tax cuts for every Australian taxpayer
Increasing Medicare levy low-income thresholds
New power bill relief
Boosting Commonwealth Rent Assistance
Cheaper medicines
Debt relief for students
Supporting students during study
Additional fee-free TAFE places
Freezing social security deeming rates
A fair go at the checkout
Superannuation on Government-funded PPL
Targeted support for JobSeeker Payment recipients with a partial capacity to work
Boosting support for Australians facing acute and urgent cost-of-living pressures
Download the full fact sheet below.
A Future Made in Australia
This Budget invests $22.7 billion over the next decade to build a Future Made in Australia. The plan aims to maximise economic and industrial benefits from the move to net zero, securing Australia’s place in a changing global landscape.
With rapidly changing global conditions, supply chains are under pressure, and new opportunities in clean energy industries are emerging. Australia, with its abundant natural resources and skilled workforce, is well positioned to strengthen supply chains and become a key player in the net zero global economy.
The Government’s plan encourages private sector investment to capitalise on this opportunity, aiming to build a stronger, more diversified, and resilient economy powered by clean energy. This will create secure, well-paid jobs and benefit communities nationwide.
The plan includes:
National Interest Framework
Net zero transformation stream
- Renewable hydrogen
- Clean energy manufacturing
- Strengthening our policy toolkitAttracting and enabling investment
- New front door for investors
- Strengthening and streamlining approvals
- Promoting sustainable financeMaking Australia a renewable energy superpower
- Innovation
- Financing
- Production
- Guarantee of origin
- Cheaper, cleaner energy
- Securing the net zero transformationValue adding to resources and strengthening economic security
Backing Australian ideas – innovation, digital and science
Investing in people and places
The Government will introduce a Future Made in Australia Act and establish a National Interest Framework to identify priority industries and prudent national investments.
Download the full fact sheet below.
Delivering a better deal for small businesses
Australia’s 2.5 million small businesses are vital to the country’s prosperity. They drive innovation and productivity. Small businesses contribute more than $500 billion to the economy and employ around 5.2 million people. They are also an integral part of their local communities, providing jobs, revenue, services and more, adding to the strength of these communities. Small business owners work hard.
The Government is committed to improving the operating environment for small businesses and helping them to thrive.
The key priorities are:
Easing the pressure on small businesses
- Supporting mental health and financial wellbeing
- Relieving energy bill pressures
- Improving payment times to small businesses
- Saving small businesses time and money
- Building cyber resilience
- Balancing small business and employee needs
- Delivering disaster supportsSupporting small businesses to grow
- Helping small businesses win business
- Powering innovation
- Ensuring the right skills in the right place
- Focusing on First Nations businesses
- Supporting our care providers
- Supporting veteran-owned businessesLevelling the playing field for small businesses
- Ensuring confidence in the franchising sector
- Improving access to justice
- Promoting healthy competition
- Backing fairer dealings with supermarketsWorking across governments for small business
Download the full fact sheet below.
Image: Bush & Campbell Directors, David Rosetta, Rebecca Nicoll, Daniel Uden, Mathew Smith, Sharon Ferguson, Amanda Powell and Peter King
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