Looking at Australia's 2024–2025 Budget

The Australian Labor Party's budget for 2024/25, proposed by Federal Treasurer Jim Chalmers MP, aims to help people cope with high living costs, improve housing, aid small and medium-sized businesses (SMEs), and address critical infrastructure and social welfare requirements. Let's look at the budget's main features and how they affect various aspects of Australian society.

Housing Measures

The funds for this year will be used to provide support for housing. This is part of an overall plan to invest $32 billion in housing by 2022. Here's what they're doing.

• Commonwealth Rent Assistance rates will be increased by 10% to assist people pay their rent.
• Increasing the funding available to community housing providers via the Affordable Housing Bond Aggregator.
• Giving out lower-interest loans to assist with the construction of new social and affordable housing.
• Saving money for emergency accommodation, particularly for women and children fleeing domestic violence.
• Investing in infrastructure such as roads and pipes to help build new homes and create more social housing.
• Increasing the number of construction workers by providing additional funding and training.

Treasurer Chalmers is setting very high goals. He claims that it is important to establish stronger communities in addition to buildings.

Measures for SMEs

The significance of small and medium-sized businesses in driving economic growth is recognized by the government. Thus, the immediate asset write-off scheme will continue for an additional year. With a $290 million allocation, this initiative seeks to support millions of small businesses with their cash flow.

In addition to these initiatives, they also support small businesses with financial and mental health support, e-invoicing support, and quicker payment processing. Additionally, they are contributing $625 million to assist farmers and rural communities in coping with drought and climate change.

Energy Rebate

More than 10 million homes will receive a $300 reduction on their electricity bills to deal with rising energy costs. Eligible small enterprises will receive $325. This offer will be available every three months beginning July 1.

Digital ID

The budget allocates more than $288 million over four years to expand the Digital ID initiative. This will make it easier for businesses to check who people are while keeping everyone's data safe and private.

Other Major Budget Measures

• Stage 3 tax reduction will take effect on July 1, 2024, giving relief to taxpayers.
• Changes to annual HECS indexation will be based on the lowest of the Consumer Price Index or the Wage Price Index, reducing students' financial burden.
• Superannuation will be paid on the government’s 20 weeks’ paid parental leave from 1 July 2025.

Note- Stage 3 tax changes are adjustments planned for Australia's tax system. Originally set by the Morrison government in 2019, these changes aimed to lower taxes for most people. Now, the Albanese government wants to make some changes. They're proposing that people earning up to $140,000 get more tax cuts. This could give middle-income families more money to spend.?

Conclusion

The Federal Treasurer has presented a budget that addresses both short- and long-term economic challenges. The government hopes to promote equitable growth and strength throughout society by focusing on making housing more affordable, assisting small enterprises, and dealing with energy prices and digital identification.

As Australia faces uncertain times, this budget shows a commitment to using the country's assets and opportunities while ensuring people are doing well and thriving. The government intends to ensure a better and safer future for all Australians through careful money management and investments.

Give us a call at 0410 965 939 to arrange a consultation for additional information on how this year's Federal Budget may affect the Australian market! For additional help, you can also make an appointment at https://team.nfinityfinancials.com/muditkhandelwal/ . Our intention is to help you!