The 2024-25 Federal Budget marks the third round under the Albanese Government. As we’ve seen in past years, the big talk is about managing the cost of living pressures and steering the economy towards net zero emissions. Election expert Antony Green considers the next election window to kick off on 3 August 2024. He mentions that if everything lines up with the writs issued by 1 July, the electoral gate stays open until mid-May 2025. With the latest possible date pegged between 17 and 24 May, it’s clear the upcoming 14 May Budget announcement is timed with electoral strategies in mind.
Stage 3 Tax Cuts
Parliament has given the green light to the revamped stage 3 tax cuts, set to kick in from 1 July 2024. This update isn’t just a tick-box exercise; it’s a strategic shift focusing on providing more relief to individuals earning under $150,000. It’s a move that promises to put more money back into the pockets of many Australians.
Investment Incentives for Small Business
The big question for small businesses is whether the instant asset write-off threshold will be lifted in the 2024-25 income year. Recall last year’s budget announcement of a threshold increase to $20,000? The Senate pushed that to $30,000, but it’s still in the air since it has yet to pass Parliament. Getting this legislation across the line quickly is crucial. It’s all about giving small business owners the certainty they need to feel confident about ramping up their investments.
Energy Bill Relief
On the topic of easing pressures, the Prime Minister has hinted at another round of energy bill relief aimed at helping low-income families and small businesses keep their costs down. This initiative will need a thumbs-up from State and Territory governments to roll out effectively, so there’s a collective breath being held on that front.
All in all, the 2024-25 Budget is shaping up to be pivotal, with strategic decisions that could impact the pockets of everyday Aussies and the broader economic landscape.
If you are looking for a comprehensive strategic review of your business or personal finances in light of the upcoming 2024-25 budget, we are here to help. Our team can provide the guidance you need to make informed decisions that benefit your financial future. Contact us today to schedule your review and take control of your finances.