2024/25 Federal Budget Update

As seen in Woopi News June 2024

While some Budget announcements apply immediately, it’s important to remember that not all announcements can be relied upon as they may require legislated to be passed.

Individuals

• The budget confirmed the reductions in the individual tax rates will apply, as referred to in our article in March that you can find on our website here.
• The government has proposed to change the rate at which student loans and HECS are indexed, this reduced indexation is planned to apply retrospectively back to 1 June 2023.
• The government is looking to amend the legislation to not offset a current tax refund against old tax debts put on hold before 1 Jan 2017.
• Further audit activity focusing on excessive deductions claimed against rents received for short term accommodation.
• Energy bill relief of $300 per residential electricity account for every Australian (applied in 4 instalments quarterly $75).

Business

• Small Business Instant asset write off threshold of $20,000 extended to 30/06/2025.
• Energy bill relief $325 for eligible small business per commercial electricity account.

Superannuation

• Super to be paid on Government funded Paid Parental Leave for those who have babies born (or adopt) on or after 1 July 2025. The super will be calculated and paid annually.

Not a budget announcement but important to note: Employee Super Guarantee will be calculated at 11.5% of ordinary time earnings from 1st July 2024. Super is planned to increase to 12% from 1st July 2025 with no further increases planned. Although some software packages are rolling out the ability to pay super on pay day, and this may be a good cash flow business decision, it’s important to remember that super is due quarterly. Pay day super is not likely to be mandatory until 1 July 2026 (this was part of last year’s budget).