On the late afternoon of May 14, the federal government’s 2024-25 budget was announced.
The previously announced adjustment to lower individual income tax rates remains unchanged and is included in the budget. Additionally, the depreciation benefits for small businesses have been extended for another year, which is noteworthy.
As a measure to support households amid rising inflation, a plan to provide $300 in electricity bill support for every household has also been confirmed.
[Summary of the 2024-25 Australian Federal Budget]
1. Benefits for Individual Taxpayers
- – Stage 3 Tax Cuts: Starting from July 1, 2024, all individual taxpayers will benefit from the legislated tax cuts. For example, an individual earning $100,000 annually will see their tax burden reduced by approximately $2,179.
- – Energy Cost Support: All Australian households will receive a $300 discount on their 2024-25 energy bills.
- – HECS-HELP Debt Indexation: The indexation rate on student loan debts will be lowered, providing financial relief to many students and graduates.
2. Benefits for Small Businesses and Corporations
- – Instant Asset Write-off: Small businesses will continue to benefit from the instant asset write-off scheme, extended until June 30, 2025.
- – Australian Manufacturing Innovation: New production tax incentives have been introduced to boost Australia’s hydrogen production and critical minerals processing capabilities.
3. Social Welfare and Housing Investment
- – Social and Affordable Housing Investment: The government will invest $6.2 billion to provide 40,000 social and affordable homes through the National Housing Accord and the Housing Australia Future Fund.
- – Healthcare and Social Welfare: Enhanced support for Medicare and social welfare programs will help reduce healthcare costs, such as through the freezing of medication prices.
4. Other Major Benefits
- – Energy Cost Support: All Australian households will receive a $300 discount on their 2024-25 energy bills.
- – Education and Training: An investment of $88.8 million will create 20,000 new construction training positions.
This budget focuses on tax cuts, energy cost support, social and affordable housing investment, and education and training. It offers significant benefits for low- and middle-income earners, small businesses, home buyers, students, and graduates.
For more detailed information, please refer to the link below, and you may also refer to the summary compiled by the CPA that is attached.