This is Jim Chalmers third budget and he has focused on cost of living relief with tax cuts to all Australians. It’s a budget positioned as being responsible with back to back surpluses and a lowering of gross debt. We’ll now take you through the key points that impact you as an individual and for those of you in small business.

Business

Extension of the instant asset write off

The Government is providing $290 million in cash flow support by extending the $20,000 instant asset write-off. Small businesses with annual turnover of less than $10 million will be able to immediately deduct eligible assets costing less than $20,000 until 30 June 2025.

Improving payment times to small businesses

The Government is investing a further $25.3 million to improve payment times to small businesses. This will ensure the Payment Times Reporting Regulator can deliver its expanded functions, which includes naming slow paying businesses, and funding fit-for-purpose ICT infrastructure.

Supporting mental health and financial wellbeing

This Budget invests a further $10.8 million to support the mental health and financial wellbeing of small business owners by:

extending the NewAccess for Small Business Owners program, which provides tailored, free and confidential mental health support to small business owners
extending the Small Business Debt Helpline, a national, free and confidential phone-based financial counselling service for small business owners.

Abolishing 457 tariffs

The Government is reducing the administrative burden for small business by abolishing 457 nuisance tariffs

Paid paid parental leave scheme

$10 million to provide additional support for small business employers administering the Paid Parental Leave scheme.

Small Business Ombudsman

The Government is investing $2.6 million over four years (and $0.7 million per year ongoing) to expand the ASBFEO’s service offering to allow a broader range of unrepresented small businesses, including franchisees, access to low-cost legal advice and assistance to navigate business disputes.

Relieving energy bill pressures

The Energy Bill Relief Fund is providing energy rebates to each of the approximately one million businesses on small customer electricity plans to help cover their electricity bills. This Budget will provide additional energy bill relief of $325 to eligible small businesses.

Individuals

Personal Income Tax

There are changes to individual income tax rates and thresholds. This will apply to all taxable income you earn from 1 July 2024.

Here are the highlights:

A reduction of the 19% tax rate to 16%.

A reduction of the 32.5% tax rate to 30%.

An increase in the 37% tax threshold from $120,000 to $135,000.

An increase in the 45% tax threshold from $180,000 to $190,000.

The table below shows the new tax rates and thresholds. Remember a further 2% medicare levy goes on top of the tax.

The ATO has put together a calculator that quickly shows your tax cut once you enter your annual taxable income. Simply follow this link

Super guarantee

From 1 July 2024 the Super Guarantee will increase to 11.5%. It will then increase by a further 0.5% on 1 July 2025 to reach 12%.

Medicare levy low-income thresholds for 2023-24

The Government has increased the Medicare levy low‑income thresholds for 2023–24, ensuring more than one million low‑income taxpayers continue to be exempt from the Medicare levy or pay a reduced levy rate.

Support for renters

$1.9 billion to increase Commonwealth Rent Assistance by a further 10 per cent, benefiting nearly 1 million households.

Cheaper medicines

The Government is working to finalise the new Eighth Community Pharmacy Agreement, supported by up to an additional $3 billion in funding, which will deliver cheaper medicines.

Supporting students

The Government will cut $3 billion in student debt for more than 3 million Australians. This will provide relief for everyone with Higher Education Loan Program (HELP) and other student loan debt.

Power bill relief

There will be a $300 energy rebate for every household. This will come into effect from 1 July 2024.

Paid Parental Leave

The Government is paying superannuation on Government-funded Paid Parental Leave (PPL) for parents of babies born or adopted on or after 1 July 2025. The Government will provide $1.1 billion over the forward estimates, with payments being made annually to individuals’ super funds from 1 July 2026. We like this as it will reduce the impact of career breaks to care for young children on superannuation balances.

Federal Budget 2024