The 2024-25 Federal Budget was handed down on Tuesday night. The budget was light in terms of tax related issues, so here’s exactly what you need to know as a business owner in Australia, in less than 5 minutes.
Stage 3 Tax Cuts
Previously announced and legislated Stage 3 Tax Cuts will go ahead as planned. No further changes to the rates and thresholds have been announced.
From 1 July 2025, the following new rates and thresholds will be enacted:
Instant Asset Write Off Extension
The Small Business Instant Asset Write Off, which was previously to end this year, has been extended for another year, until 30 June 2025. Small businesses, with an aggregated annual turnover of less than $10 million, will continue to be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2025. The asset threshold applies on a per asset basis so small businesses can instantly write off multiple assets.
Cost of Living Energy Credits for Individuals and Small Business
The Government is providing $2.5 billion to extend the Energy Bill Relief Fund, in order to provide a rebate to all Australian households, and eligible small businesses, to ease cost of living pressures.
All Australian households will receive a $300 rebate on energy bills, and eligable small businesses will receive $325, to be paid in quarterly instalments on energy bills across 2024-25. Small businesses must meet their state and territory definition of electricity ‘small customer’, as determined by their annual electricity consumption threshold (see below), to be eligible for a $325 annual rebate.
Superannuation on Paid Parental Leave
As previously announced, the federal government will pay superannuation on government-funded Paid Parental Leave (PPL), from July 1 2025. Payment will be administered by the ATO.
HELP Debt Indexation Changes
The Higher Education Loan Program (HELP) indexation rate has been capped to the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI) with effect from 1 June 2023. The relief will be backdated to all student loan accounts that existed on 1 June 2023.
Questions about how this years federal budget affects you and your business? Please do not hesitate to contact us for personalised advice.
