| On May 14th, 2024, Treasurer Dr Jim Chalmers presented the 2024-25 Federal Budget, outlining various financial measures and policy adjustments to address current economic challenges. In releasing the budget, the Treasurer has indicated that it reflects the government’s approach to managing economic pressures while investing in long-term national growth. While the majority of the big ticket items had already been announced, one new addition related to the non-means-tested electricity rebates for households and small businesses. The ATO has also received significant funding to strengthen tax compliance. |
| Tax cuts from 1 July 2024 $13.6 million taxpayers will receive tax cuts from 1 July 2024, with an average benefit of $1888 per year or $36 per week. Instant asset write-off extended The scheme has been extended until 30 June 2025, allowing businesses with a turnover under $10 million to deduct the costs of eligible assets under $20,000. Households and small businesses Energy bill relief – $300 for households and $325 for small businesses – non means-tested. Small Business Debt Helpline Extension An allocation of $10.8 million over two years from 2024-25 will sustain the Small Business Debt Helpline and the NewAccess for Small Business Owners program. Franchise Code of Conduct $3 million in funding will support the exploration of a licensing model and the renewal and update of the Franchising Code of Conduct before its expiry in April 2025. Support for ASBFEO The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) will receive $2.6 million over four years starting in 2024-25, plus an ongoing $0.7 million per year, to help unrepresented small businesses resolve business-to-business disputes via alternative dispute resolution. eInvoicing Promotion An investment of $23.3 million will promote wider adoption of eInvoicing among small businesses to enhance cash flow, combat payment redirection scams, and improve productivity. Superannuation $1.1 billion over four years to pay superannuation on Government-funded Paid Parental Leave for parents of babies born or adopted on or after 1 July 2025. Tax Compliance $2 billion in new spending will strengthen tax compliance, with the ATO receiving additional funding for key compliance programs focusing on personal tax, the shadow economy, fraud, large businesses, and high-wealth individuals. Workplace reform support The Office of the Fair Work Ombudsman will receive $20.5 million over four years from 2024–25 (and $5.1 million per year ongoing) to boost funding to support small business employers to comply with recent changes to workplace laws. Aged Care Reform and Carers $110.9 million to strengthen the regulation of aged care and $531.4 million to release 24,100 additional home care packages and an increased ability for those on a Carer payment to work. Skills and workforce The forecasted net overseas migration is expected to decrease from 528,000 in 2022–23 to 260,000 in 2024–25. The levels for the Permanent Migration Program will be set at 185,000 places, with 132,200 allocated to the “Skilled” stream. $3 billion will be allocated to reduce student debt, including HELP, VET Student Loan, and Australian Apprenticeship Support loans. $9.9 billion will be allocated over 4 years to fund the National Skills Agreement, and $1.4 billion will be provided through to 2028-29 for new fee-free Uni Ready Courses starting from 1 January 2025. Future Made in Australia Act $22.7 billion investment over the next decade to encourage domestic manufacturing and renewable energy projects. This includes tax incentives for hydrogen and critical minerals production, and funding for solar panel manufacturing and battery production. $65 billion invested in renewable energy, with additional funding for integrating batteries and solar into the grid. $1.5 billion will also be allocated for manufacturing clean energy technologies. We will continue to monitor the passage of the measures that require legislation, and if you have any questions about the 2024 budget, please reach out to our team. |
