Empowering Financial Futures: Federal Budget Insights 2024/25

The 2024 Federal Budget, unveiled by Treasurer Jim Chalmers on 14 May, delivers essential updates for our financial planning clients.

While not revolutionary, the Budget introduces measures aimed at easing cost-of-living burdens and fostering long-term financial security for Australians.

Here are the key takeaways:

For Individuals…

1. Stage 3 Tax Cuts

The Government confirmed the implementation of the Stage 3 tax cuts effective from 1 July 2024. These cuts will apply to all 13.6 million taxpayers, reducing tax liabilities by $1,888 per year on average.

2. Energy Bill Relief

From 1 July 2024, more than 10 million households will receive a $300 rebate on their electricity bills, and one million small businesses will receive a $325 rebates.

3. Medicare Enhancements

The Government is investing $2.8 billion to strengthen Medicare, which includes:

  • Urgent Care Clinics: $227 million to establish 29 new Medicare Urgent Care Clinics, increasing the total to 87 nationwide.
  • Health Workforce Support: $90 million to streamline processes for international health practitioners to work in Australia.

4. Housing Initiatives

The Budget includes an additional $6.2 billion investment in housing, expanding initiatives such as the National Housing Accord, Housing Australia Future Fund, and Social Housing Accelerator, to address housing pressures and increase affordable housing availability.

5. Rent Assistance

An additional $1.9 billion investment will increase the maximum rates of Commonwealth Rent Assistance by 10%, benefiting nearly one million households and alleviating rental stress.

Superannuation Initiatives…

  • Paid Parental Leave (PPL): Starting from 1 July 2025, the Government will pay superannuation on Government-funded PPL.
  • The Superannuation Guarantee rate will increase from the current 11% to 11.5% from 1 July 2024, and further to 12% from 1 July 2025.
  • Contributions Caps: From 1 July 2024, the general concessional contributions cap will increase from $27,500 to $30,000, and the non-concessional contributions cap will increase from $110,000 to $120,000.

Small Business Support…

  • Instant Asset Write-Off: Extension of the $20,000 instant asset write-off for an additional 12 months, providing $290 million in support.
  • eInvoicing: $23.3 million allocated to increase eInvoicing adoption, and $25.3 million to improve payment times to small businesses.

To learn more about how the Federal Budget may affect you or your business, please contact us on on 08 9328 5044 or email advice@moiler.com.au.

For more information, Download our Federal Budget Market Wrap here.Federal Budget 2024-25 Market Wrap

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