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2024-25 Budget Breakdown: How It Affects You and Your Wallet

2024-25 Budget Breakdown: How It Affects You and Your Wallet

The 2024-25 Budget arrives on the pre-election stage, echoing the excitement of a “The Price Is Right” episode where everyone has something to gain. This budget is crafted to ease cost of living pressures, making it a pivotal element in the upcoming elections.

Check out the budget summary: Federal Budget 2024-25

Key measures include:

  • Previously announced Stage 3 tax cuts
  • $300 energy bill relief for all Australian households and $325 for eligible small businesses – applied as an automatic quarterly credit.
  • Student HELP debts will be cut by changing the way indexation is calculated. From 1 June 2023, it will be the lower of the CPI or the Wage Price Index (WPI), reducing the debt accumulated by more than 3 million Australians when the CPI spiked to 7.1%.
  • Increase to the Commonwealth rent assistance maximum rates by 10% from 20 September 2024.
  • One year freeze on the maximum Pharmaceutical Benefits Scheme (PBS) patient co-payment for Medicare card holders and a five-year freeze for pensioners and other concession cardholders.
  • Extension of the $20k instant asset write-off until 30 June 2025.
  • For foreign residents, the capital gains tax (CGT) regime will be amended to broaden the type of assets subject to CGT and introduce a modified 365-day principal asset testing period.

The 2024-25 Budget is a clear demonstration of the government’s dedication to supporting both individuals and businesses. As the electoral “checkout” approaches, the effectiveness of these measures will ultimately be judged by the voters.

 

Want to learn more about how the 2024-25 Budget can benefit you? Contact our team today for detailed insights and how these changes impact you.