The Price is Right: Budget 2024-25

Cost of living pressures have dominated this year’s budget with the Treasurer promising that inflation will decline by 0.75% as a direct result of the 2024-25 Federal Budget initiatives. 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.

Those with large superannuation balances will be disappointed that the 30% tax on super earnings on balances above $3 million remains in place, this is set to commence from 1 July 2025.

What does this mean for business?

For small and medium business, there is a little but not a lot:

  • an extension of the $20k instant asset write-off until 30 June 2025
  • a $325 rebate to eligible businesses towards 2024-25 energy bills.

For business, the Government is also picking winners through targeted public investment with its Future Made in Australia Framework which they are betting will pave the way for private investment in net zero transformation and the strengthening of Australia’s domestic economic resilience.

For a complete breakdown on the budget please click here