What you can expect from the 2024-25 Budget

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The 2024-25 Federal Budget is the third for the Albanese Government and consistent with previous years, the primary themes are expected to be the cost of living and the economic shift to net zero.

According to election guru Antony Green, the window for the next election starts on Saturday, 3 August 2024. “The election window will stay open until mid-May 2025, the last date being 17 or 24 May.”

No doubt, the Government will have the election in mind when it presents the Budget on 14 May at 7.30pm AEST.

So, what can we expect?

Stage 3 tax cuts

The redesigned stage 3 tax cuts have been passed by Parliament and will apply from 1 July 2024. The amendments broadened the benefits of the tax cut by focussing on individuals with taxable income below $150,000.

Investment incentives for small business

We are still unsure whether an increased instant asset write-off threshold will apply to smaller businesses in the 2024-25 income year. The increased threshold to $20,000 announced in the 2023-24 Budget still has not passed Parliament (the Senate increased the threshold to $30,000).

If the intent of this measure is to encourage investment, it is essential that legislation enabling these measures is passed by Parliament in a reasonable time to give business operators the certainty they need to commit to any additional investment spending.

Energy bill relief

The Prime Minister has hinted at another round of energy bill relief to ease cost of living pressures for low-income households and small business.

The measure is subject to support from State and Territory governments. 

Want to learn more when the Budget is released? Look out for our analysis on how the 2024-25 Federal Budget will impact you, your business, and your superannuation on Wednesday 15 May.

You can also attend our annual Budget and Tax Planning Seminar on Tuesday 21 May, where Shane McKenna will break down the key items from the 2024-25 Federal Budget and make sure you’re across all the changes and topical issues!