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Winners of the 2024 Federal Budget explainedBack


On May 15, 2024
Article
The 2024 Federal Budget was released 14th May 2024 addressing areas of Cost-of-Living challenges faced by everyday Australians.

Energy Relief Bill
Each Australian household and eligible small business will receive a $300 annual energy rebate, to be paid $75 each quarter to Australian Households to counter high electricity bills in 24/25 under a $3.48 billion plan to provide energy bill relief.

Pharmaceutical Benefits Scheme (PBS)
Prices for medicines under the program will be frozen for the next five years for concession card holders, while co-payments on PBS prescriptions will also be frozen for the next year for all Australians with a Medicare card.

Stage 3 Tax cuts
Tax cuts for all Australian taxpayers to help with Cost of Living means that From 1 July this year, the Government will:

  • Reduce the 19 per cent tax rate to 16 per cent
  • Reduce the 32.5 per cent tax rate to 30 per cent
  • Increase the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
  • Increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000

All 13.6 million Australian taxpayers will receive a tax cut from 2024–25 onwards. A person with an average wage of around $73,000 will get a tax cut of $1,504.

Income Annual tax cut
$45,000 $804
$75,000 $1,554
$100,000 $2,179
$150,000 $3,729

*Source treasury.gov.au/tax-cuts

Commonwealth Rent Assistance
Millions of Australians who already receive income support from the federal government, including aged pensioners, JobSeeker recipients, and those receiving disability support pensions, will benefit from a 10% increase (an average of $19 per fortnight) in maximum subsidy rates starting from September 20th.

HECS/HELP Debt Indexation
Changes to the metrics used for the indexation calculation for HELP, VET student loans and Australian Apprenticeship Award loans. From June (and backdated to include the prior year) the calculation will use the lesser of the Consumer Price Index (CPI) or the Wage Price Index (WPI). At current rates, it effectively halves the rate of indexation from the prior year’s spike from 7.1% to 3.2% in 2023 and from 4.7% to around 4% in 2024, and $239.7 million is allocated over the five years from 2024-25.

Aged Care
Addressing the rising desire of 'ageing in place,' $531 million will be provided to support the provision of 24,000 home care packages in 2024-25, with a further $174.5 million invested in equipment and software to support the staged roll-out of the new Support at Home Program from 1 July 2025

Superannuation
Thousands of Aussie families will soon be paid superannuation on their parental leave payments benefiting 180,000 families a year, reducing the gender gap with the budget measure set to kick in from July 1, 2025. With the budget measure set to kick in from July 1st 2025 $1.1 billion allocated in funding over four years to pay super on government-funded parental leave.

Tradies
The budget extends the instant asset write-off, allowing tradespeople to continue writing down Utes and other vehicles until June 30, 2025. Small businesses with turnover under $10 million a year are eligible to immediately deduct the full cost of an eligible asset (worth less than $20,000), costing $239 million from 2023-24.

The Federal 2024 Budget’s biggest winners are the Australian Taxpayers, HECS/Help scheme recipients and bill-paying households as the Government delivers the 2024 Federal Budget to address and relieve Australian Households in their Cost of Living.

ABC News Australia summarises the winners and losers of the Australian Federal Budget here: Winners and Losers of the 2024 Federal Budget

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