[newsletter]
2024-2025 Australian Federal Budget Insights
Tax Measures:
· Bottom Tax Rate Reduction: The tax rate for incomes below $45,000 reduced from 19% to 16%, providing up to $804 in annual savings for all tax-filers.
· High-Income Adjustments: Smaller tax cuts for incomes above $146,486, with the majority (90%) receiving the same or larger tax cuts compared to the original Stage 3 plan.
· $20,000 Instant asset write off extended for another year. From 01st July 2025 it will go back to $1,000
Cost of Living:
· Energy Bill Relief: From July 1, 2024, $300 rebates for households and $325 for about one million small businesses to help with energy bills, expected to reduce inflation by 0.5% in 2024-25.
· Rent Assistance: Commonwealth Rent Assistance increased by 10%, benefiting nearly one million households, costing $1.9 billion over five years.
Education:
· Student Debt Relief: Indexation of accumulated student contribution debts reduced, backdated to 2023, cancelling about $3 billion in debt, aiding 3 million Australians.
· Placement Payments: New ‘Commonwealth Prac Payment’ of $319.50 per week for students on clinical and professional placements.
Housing:
· Funding for Housing: Additional $1 billion to expedite housing projects and $1.9 billion in loans to support the construction of 40,000 social and affordable housing units.
· Rent Assistance Increase: Further 10% increase in Commonwealth Rent Assistance.
Changes to Superannuation Guarantee Entitlements
· Minimum superannuation guarantee (SG) rate will increase from 11% to 11.5% from 01st July 2024
· Superannuation will be added to the Paid Parental Leave (PPL) scheme from 01st July 2025
Build-to-Rent Incentives
· Managed investment trust withholding tax rate halved from 30% to 15%.
· Capital works tax deduction (depreciation) rate increased from 2.5% to 4% per year.
· Applicable to newly constructed build-to-rent properties.