The Treasurer estimates that the 2024-25 Federal Budget will help reduce inflation by 0.75%. These policies include decreased energy costs for all families, more funding for Commonwealth Rent Assistance, and freezing the highest co-payment on the Pharmaceutical Benefits Scheme unchanged. 

This is a pre-election budget and almost everyone will get a little something to help with the cost of life. Like on the game show The Price Is Right, it all comes down to the out-of-pocket pays. 

With the Budget measures in place, the government hopes that the consumer price index (CPI) will return to goal by the end of 2024. If this happens, the Reserve Bank of Australia (RBA) may decide to lower interest rates. The RBA doesn’t think inflation will return to the target range of 2% to 3% until the second half of 2025.

The surplus for 2023–24 has grown to $9.3bn, but it is expected to drop to a deficit of $28.3bn in 2024–25, mostly due to the Stage 3 tax cuts.

For businesses, the Government is picking winners through focused public investment in its Future Made in Australia Framework. They hope that this will open the door for private investment in net zero change and make Australia’s economy stronger.

There are not that many updates for SMEs. The quick asset write-off of $20,000 has been extended until June 30, 2025, and businesses that qualify will get a $325 refund on their energy bills for 2024–2025.

For people who live outside of Australia, the capital gains tax (CGT) system will be changed to include more types of assets and a different 365-day time for testing main assets. 

Key measures:

• Stage 3 tax reduction have already been unveiled.
• All Australian households will get a $300 rebate on their energy bills, while small businesses that qualify would receive $325. 
• How indexation is calculated has changed, Student HELP debts will be reduced as a result.
• From September 20, 2024, the Commonwealth’s top levels of rent assistance will increase 10%. 
• The maximum Pharmaceutical Benefits Scheme (PBS) patient co-payment will be fixed for one year for Medicare cardholders and five years for pension and other discount card holders.
• Those with substantial super accounts will be disappointed that the 30% tax on super profits on balances exceeding $3 million remains in place, from July 1, 2025.