Federal Budget 2024-25 Overview

In the 2024-25 Federal Budget the Government had the difficult task of introducing measures that would address Australian's cost of living concerns without over-stimulating the economy.

Driven by the media coverage and the electorate, the Government has over the last few months been focussing on Australia's cost of living crisis. The cost of living seen through various indexes such as the consumer price index and underlying inflation data has been increasing. Significant price increases in food, transport and housing has impacted Australian families, requiring this issue to be addressed by the current Government.

This has primarily been achieved through the amended stage 3 tax cuts that provide a tax cut to a broader range of incomes particularly in the lower to middle income brackets.

Any large-scale or significant incentives could risk over-stimulating the economy resulting in further increases to inflation. Pinned between these two issues this Federal Budget is a low-key affair with no new significant measures being announced.

It is also interesting to note what the Federal Budget does not contain – there are no tax incentives for business to encouragethe transition to a green economy.

Over the last few years Government has introduced targeted measures to tighten super rules – no new super rules have been announced in this Federal Budget. Have wecome to the end of this series of initiatives, or is Government waiting to see whether their new measures have had the desired impact on wealthy Australians effectively utilising theirsuper savings?

Key Takeaways

The 5 key points of the Federal Budget 2024-25

Changes to individual tax rates

Small business instant asset write-off

Further support for the ATO tax compliance program

Changes to the CGT regime for non-residents

Increased scrutiny on royalties paid to non-residents

These changes give a break to low and middle-income earners by lowering the tax on their income.

Extension of the $20,000 instant asset write-off scheme for businesses with a turnover of less than $10 million. 

Continuation of several successful ATO tax compliance programs.

Non-residents that have CGT gains on shares exceeding $20 million have to notify the ATO.

Significant Global Entities that have mischaracterised or undervalued royalty payments may be subject to penalties.

Click HERE to download the report as a PDF.

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