What You Can Expect From The 2024-25 Budget

The 2024-25 Federal Budget is the third for the Albanese Government. 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 expert 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 on 14 May at 7.30pm.

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.

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. This will 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. 

This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your accountant.