May 21, 2024

What the 2024-25 Budget Means For You

As the dust settles from this year’s budget announcement last week, we’ve focussed in on a few positive outcomes that will hopefully help ease the pressure on struggling households and small businesses.

Individuals and families

A $300 energy relief payment for households

Households will receive a credit of $300 on their energy bills across 2024-25. The credit will be automatically applied to energy bills in quarterly instalments.


Capping indexation of HELP debts

As previously announced, HELP debts for all Australians will have indexing capped at the lower rate of either Consumer Price Index (CPI) or the Wage Price Index (WPI). This applies to all HELP, VET Student Loans, Apprenticeship Support Loans, and other student support loan accounts. This will be backdated to take effect from 1 July 2023, meaning all loan accounts that existed on 1 June, 2023 will have a credit applied for last year’s indexing.


This change will mean indexing applied on 1 June 2023 will be reduced from 7.1% to 3.2%

Estimated indexation for HELP debts

These changes are still pending the passing of legislation.


Superannuation of paid parental leave

From 1 July 2025, superannuation will be paid on Paid Parental Leave payments.

Eligible parents will receive this amount on top of their parental leave payments based on the superannuation guarantee as a contribution to their superfund.

This is in addition to the extra leave families will be provided with over the coming years.


Permanent tax cuts

Finally, the Government’s permanent tax cuts for all Australian taxpayers comes into effect on 1 July, 2024. You see these tax cuts in our previous blog here.


Business and Employers

For small business, there is a little but not a lot - an extension of the $20k instant asset write-off until 30 June 2025 and an instant energy relief payment.


For those that don’t know what an asset write off is, let us explain. Small businesses with an aggregated turnover of less than $10 million will be able to immediately deduct the full cost of eligible depreciating assets. The assets must cost less than $20,000 and be first used or installed between 1 July 2023 and 30 June 2025. This is an extension of a 2023-24 announcement.

“Immediately deductible” means a tax deduction for the asset can be claimed in the same income year that the asset was purchased and used (or installed ready for use).  


If the business is registered for GST, the cost of the asset needs to be less than $20,000 after subtracting the GST credits that can be claimed for the asset. If the business is not registered for GST, it is less than $20,000 including GST.


The write-off applies per asset, so small businesses can deduct the cost of multiple assets.

The increased assets write off for small businesses announced in the 2023-24 Federal Budget isn’t yet law. This is still being worked through with senate amendments having been proposed.


Energy relief for small businesses

Around one million eligible small business will also receive an energy relief rebate of $325. Like for households, this quarterly credit will be applied automatically.

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