The Federal Budget released the 2024 Budget and as expected, there are not a lot of changes or reforms for businesses. Most changes impacting individuals had been well known in advance and as such, there is not a lot of tax or accounting impacts for businesses or taxpayers. Here is a summary of the major announcements:

The changes to personal tax rates from 1 July 2025 will go ahead as already legislated. As has been known, these changes will produce tax savings for all taxpayers but the reduction in tax is reduced to high income earners from the original proposed cuts. This measure makes tax planning for 2024 crucial, as tax will be saved by deferring income and tax from 2024 to 2025.

The popular immediate asset write off for businesses with turnover less than $10 million has been extended to 30 June 2025. Unfortunately, the asset threshold remains at $20,000 and has not been increased.

Superannuation will be paid by the government on paid parental leave for births on or after 1 July 2025.

Higher Education Loan Program (HELP) debts will be indexed at a lower rate moving forward. The debts will be indexed at the lower of CPI or Wage Price Index.

Households will receive $300 off their electricity bills from 1 July 2024. This will be automatically put through their quarterly power bills.

Around 1 million small businesses will similarly receive $325 off their energy bills for the 2025 financial year.

If you have any questions, please do not hesitate to contact us.