This pre-election budget feels like a surprise gift, with most people getting a little something to help ease cost-of-living pressures.  

The Government is keeping spending down to control inflation, hoping that their measures will be effective. They expect inflation to ease until the end of the year and anticipate that the RBA will keep rates on hold during this period. The Government predicts inflation will return to the target range of 2-3% by mid-next year, which is a faster recovery than both the RBA and major economists forecast.

Business Updates 

  1. Energy Bill Relief: Starting 1 July 2024, eligible small businesses will receive a $325 rebate on their electricity bills, providing crucial cost-of-living relief.

  2. Instant Asset Write-Off: The $20,000 instant asset write-off has been extended until 30 June 2025. This extension enables small businesses to quickly deduct the expense of qualifying assets, improving cash flow and lowering compliance costs.

  3. Superannuation Changes: Starting 1st July 2024, the Super Guarantee will rise to 11.5%, and will further increase to 12% from 1st July 2025.

  4. Paid Parental Leave: From 1st of July 2025, the Government will pay super on Government-funded Paid Parental Leave.

  5. Cyber Resilience: The Government is investing $23.4 million in a Cyber Wardens program to offer free online training for small business owners and their staff, aiming to foster a cyber-safe culture and mindset. Additionally, $11.1 million is allocated for the Small Business Cyber Resilience Service to help small businesses enhance their cyber resilience. 

Personal Finance Updates 

  1. Tax Cuts: Curious about your tax savings from 1 July 2024? 
    2023/24 (current year) 2024/25 and future years
    Thresholds Rates* Thresholds Rates*
    0 to $18,200 0% 0 to $18,200 0%
    $18,201 to $45,000 19% $18,201 to $45,000 16%
    $45,001 to $120,000 32.5% $45,001 to $135,000 30%
    $120,001 to $180,000 37% $135,001 to $190,000 37%
    Over $180,000 45% Over $190,000 45%

    *Rates do not include Medicare Levy

  2. Energy Rebate for All Australians; Every Australian household will receive a $300 energy rebate starting 1 July 2024, with no means testing required. This rebate will be automatically applied to electricity bills in quarterly instalments.

  3. HECS/HELP Indexation; The rate of indexation on HECS/HELP debts has been adjusted, effectively halving the rate from the prior year’s spike. The rates are 3.2% in 2023 and approximately 4% in 2024, down from 7.1% previously.

  4. PBS Co-Payment Freeze; There will be a 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. This aims to alleviate healthcare costs for Australians. 

If you have any questions or want to chat about how you can invest the extra money in your pocket – get in touch.