26 May 2024

2024-25 Federal Budget Highlights

The Federal Treasurer, Dr Jim Chalmers, handed down the 2024–25 Federal Budget at 7:30 pm (AEST) on 14 May 2024.

The full Budget papers and the Treasury ministers’ media releases are available online, however we’ve summarised some of the key matters into the below highlights for you:


Income Tax

  • The instant asset write-off threshold of $20,000 for small businesses applying the simplified depreciation rules will be extended for 12 months until 30 June 2025.
  • The foreign resident CGT regime will be strengthened for CGT events commencing on or after 1 July 2025.
  • No further changes to the revised stage 3 personal income tax cuts, which will be in effect from 1 July 2024.
  • The Government has increased the Medicare levy low-income thresholds for singles, families, seniors and pensioners from 1 July 2023.


Social Security

  • Social security deeming rates will be frozen at their current levels for a further 12 months until 30 June 2025.
  • Carer payment recipients will have greater flexibility with their participation requirements.
  • Eligibility for the higher rate of Jobseeker payment will be extended to single recipients with a partial capacity to work of zero to 14 hours per week.
  • The maximum rates of the Commonwealth Rent Assistance will increase by 10% from 20 September 2024.



  • Superannuation will be paid on government-funded paid parental leave (PPL) for parents of babies born or adopted on or after 1 July 2025.
  • The Fair Entitlements Guarantee Recovery Program will be recalibrated to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.


Tax Administration

  • The ATO will be given a statutory discretion to not use a taxpayer’s refund to offset old tax debts on hold.
  • Indexation of the Higher Education Loan Program (and other student loans) debt will be limited to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023.


Cost of living

  • $300 energy bill relief rebate for households, which will be automatically applied to electricity bills (in quarterly instalments).
  • $325 energy bill relief rebate for approximately one million small businesses.
  • The price of PBS-listed medications will be frozen for 1 year for everyone with a Medicare card (or for 5 years if you are a Commonwealth concession card holder).


If you have any questions, please reach out to your Ipsum accountant.