The Federal Budget Wrap 2024

Jim Charmers handed down the Federal Budget for 2024-25 with most of the content already being released to the media prior to its’ publication. This edition really does not warrant in depth discussion given the policy implications are scratching around the edges and therefore I’ve reserved the usual commentary. The only points I would add are:

a) The social security deeming rate freeze will maintain the status quo for age pension/commonwealth senior card recipients. This a positive development given this rate was set to rise dramatically and could have impacted certain individuals age pension entitlements.

b) The reduction of student debt indexation seems unfair to those individuals who have prudently paid off their HELP debts to avoid these increases before June 2023 (and the coming increase in June 2024).  

I’ve listed the major policies in greater detail in the link below

Please let me know if you require any further discussion of any of the points raised in this email.

Summary of key proposals

• Revised Stage 3 tax cuts will deliver tax savings from 1 July 2024.
• Energy bill relief will provide savings of up to $300 for all households and $325 for eligible small businesses. 
• The $20,000 instant asset write-off threshold for eligible small businesses will be extended for another 12 months until 30 June 2025.
• Superannuation Guarantee will be paid on Paid Parental Leave from 1 July 2025.
• The freeze on social security deeming rates for financial investments will be extended until 30 June 2025.
• The maximum Commonwealth Rent Assistance will be increased by 10%.
• Reducing indexation of student debt from 1 June 2023
• Freeze on cost of PBS medicines