What the 2024 Federal Budget Means for You
The 2024 Federal Budget was announced on Tuesday 14 May 2024, with a focus on cost-of-living relief (again) and clean energy.
There were no new tax or superannuation changes announced, and the previously announced Stage 3 Income Tax cuts were confirmed to begin on 1 July 2024.
Here is a brief summary of the Budget updates relevant to the majority of our clients:
Businesses
- Small Business Instant Asset Write Off: Small businesses, with an aggregated turnover of less than $10 million, will continue to be able to immediately deduct the cost of eligible assets costing less than $20,000 until 30 June 2025. Please note this is a tax deduction and not $20,000 cash back to you.
- Small Business Energy Rebate: The Government will provide a $325 energy rebate to eligible small businesses on their 2024/25 energy bills to provide cost of living relief. This won’t be a cash payment – but it will be a quarterly payment to your energy company by the Government.
Individuals
- Household Energy Rebate: The Government will provide a $300 rebate to all Australian households on 2024/25 energy bills to provide cost of living relief. This won’t be cash to you – but it will be a $75 quarterly payment to your energy company by the Government.
- Medicare Levy Low-Income Thresholds Increased: The Government will increase the Medicare Levy low-income threshold for everyone from 1 July 2023. This means all individuals will now pay slightly less tax.
- Revised Stage 3 Tax Cuts for Individuals: The Government confirmed the revised Stage 3 Tax Cuts will begin on 1 July 2024. Here is a summary of the tax cuts you and your employees will receive based on your earnings. More money in your pocket each week!
| Annual Income | Tax Savings |
| $40,000 | $13 per week |
| $75,000 | $30 per week |
| $100,000 | $42 per week |
| $125,000 | $58 per week |
| $150,000 | $72 per week |
| $200,000 | $87 per week |
- Deeming Rate Freeze Extended: The deeming rate is the Government’s assumed return on a retiree’s investments The top rate of deeming will be held at 2.25% for another 12 months. Half a million pensioners can relax, the deeming rate is staying unchanged for next year.
Superannuation
- Increased Employer Super: While this isn’t a Budget announcement, this is a good opportunity to remind you that as an employer you are required to pay 11.5% of your staff’s salary (up from 11%) into your superannuation from 1 July 2024. Please remember if your employee has a salary package that is inclusive of super, then their take-home pay effectively reduces by 0.5% from 1 July 2024. But remember this will be offset by the Stage 3 personal tax cuts also coming into effect on 1 July 2024.
- New Super Contribution Caps: While there were no superannuation reforms contained in this year’s Budget, the super contribution caps were given an inflation adjustment. The tax-deductible super cap will increase from $27,500 to $30,000 on 1 July 2024. The non-tax-deductible super cap will increase from $110,000 to $120,000 per year. You will be able to contribute $2,500 more into super as a tax deduction from 1 July 2024.