Budget 2024-25 is a pre-election budget for the people with everyone getting a little something to ease cost of living pressures. Like the Price is Right gameshow, it will all come down to the price paid at the checkout.
For business, there is the extension of the $20k instant asset write-off again. The Government has also gone all in with its Future Made in Australia initiative part of which is to create Australia as a renewable energy superpower.
Key measures include:
– Previously announced Stage 3 tax cuts
– $300 energy bill relief for all Australian households and $325 for eligible small businesses – applied as an automatic quarterly credit.
– Student HELP debts will be cut by changing the way indexation is calculated. From 1 June 2023, it will be the lower of the CPI or the Wage Price Index (WPI), reducing the debt accumulated by more than 3 million Australians when the CPI spiked to 7.1%.
– Increase to the Commonwealth rent assistance maximum rates by 10% from 20 September 2024.
– One year freeze on the maximum Pharmaceutical Benefits Scheme (PBS) patient co-payment for Medicare card holders and a five-year freeze for pensioners and other concession cardholders.
– Extension of the $20k instant asset write-off until 30 June 2025.
– For foreign residents, the capital gains tax (CGT) regime will be amended to broaden the type of assets subject to CGT and introduce a modified 365-day principal asset testing period.
Read our full guide to the 2024-25 Federal Budget below.