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MP+ Federal Budget Update 2024-25

The 2024-25 Federal Budget was handed down on Tuesday 14 May 2024 by Treasurer Jim Chalmers of the Albanese government. Mr Chalmers indicated a $9.3 billion surplus this financial year, following a $4 billion surplus last financial year. This is only the second consecutive budget surplus in two decades – however the likelihood is there will be three years of deficit from next financial year.

There is certainly not much in this Budget for businesses, however there are a few noteworthy inclusions and welcome relief for individuals. Here are the highlights from this year’s Federal Budget:

• Cost of Living relief:
  • $300 energy bill relief for all Australian households and $325 for eligible small businesses – applied as an automatic quarterly credit.
• Tax reforms:
  • Stage 3 Tax Cuts (previously announced)
  • Extension of the Instant Asset Write-Off Scheme for small businesses
• Education, training and HECS changes:
  • Student debts lowered due to reforms in HECS indexation
  • Commonwealth Prac Payment for eligible students completing practical placements
  • Expanded eligibility for apprentice payments relating to learning “clean energy skills”
  • $90m towards 15,000 fee-free TAFE and VET places to get more workers into the construction industry
• Housing:
  • $1 billion for crisis and transitional accommodation for women.
  • $400m federal homelessness funding.
  • Commonwealth rent assistance maximum rate increase: 10% from 20 Sept 2024.
• Future Made in Australia (Local Manufacturing):
  • $1bn for the Solar SunShot program (increase number of Aus-made solar panels).
  • $2bn for the Hydrogen Headstart scheme (accelerate green hydrogen industry).
• Health and aged care:
  • $8.5bn additional health & Medicare funding, incl. $227m for 29 urgent care clinics.
  • $20m for childhood brain cancer research.
  • $49.1m support for those with endometriosis and other gynaecological conditions.
  • Increase to the Commonwealth rent assistance maximum rates by 10% from 20 September 2024.
• Paid parental leave: Addition of superannuation to paid parental leave from next July

Note these Budget measures are subject to the passage of legislation. At McKinley Plowman, we’re dedicated to helping our clients make the most of the measures announced in the budget. If you require assistance or further information about the contents of the Budget, and how they might affect you or your business, please reach out. Our dedicated teams in the areas of accounting, taxation, bookkeeping, superannuation, and finance are on hand to assist.

Read the MP+ Federal Budget Update Here

written by:

Nigel Plowman

Prior to forming McKinley Plowman, Nigel specialised in management consulting and international accounting, enjoying success in Australia and in the United Kingdom. His extensive experience in management consulting, international accounting and innovative tax structures has been a major driver in the success of McKinley Plowman as well as the many businesses he has steered towards new levels. Nigel is dedicated to fast-tracking his client goals with cutting edge tax and business strategies. He is a member of the CPAs and the Taxation Institute of Australia and enjoys developing tax strategies that work well here and around the world.