On Tuesday 14 May 2024, Federal Treasurer Jim Chalmers MP handed down the highly anticipated federal budget for 2024-25 to Parliament. The 2024-25 budget focuses on assisting with the cost of living, building more homes, strengthening Medicare and responsible economic management.
Housing boost
Over the next 5 years, the government aims to build 1.2 million homes, with $6.2 billion in new investments fuelling the Homes for Australia plan. This means clearing local infrastructure bottlenecks, expanding housing for students, and funding more social and affordable housing.
Energy rebate
$3.5 billion in new energy bill relief is coming. Starting July 1, Australians will receive an energy rebate of $300, while one million small businesses will get $325. Cutting energy bills not only eases household budgets but also directly tackles inflation.
Rental assistance
Commonwealth Rent Assistance sees a 10% increase, totalling $1.9 billion over five years. Nearly 1 million households will benefit from this boost.
Student debt relief
Indexation will be capped to either the Consumer Price Index or the Wage Price Index, whichever is lower. This could potentially wipe $3 billion in student debt for over 3 million Australians. This move will save the average person around $1,200.
Small business support
The $20,000 instant asset write-off is extended until 30 June 2025, providing $290 million in cash flow support for up to 4 million small businesses. Additionally, $625 million is earmarked to help farmers and rural communities reduce emissions and prepare for climate change and drought.
Are you a small business owner, renter or looking to enter the property market and want to know how these budget measures may impact you? Contact us today.
Disclaimer: Any information provided herein is of a general nature only. No consideration has been taken into your objectives, needs or financial situation. Before acting on this information you should consider if it is appropriate for your situation.
