The Albanese government is set to present its third Federal Budget of 2024-25. As in prior years, the principal focal points are anticipated to be the cost of living and the transition towards a net-zero economy. 

The window for the next election, according to election expert Antony Green, opens on Saturday, August 3, 2024, “the earliest date possible for an election if writs are issued on July 1.” 

The election period will continue until mid-May 2025, with the 17th or 24th of May serving as the final dates. The government will undoubtedly consider the upcoming election when it delivers the budget on May 14 at 7.30pm AEST.

Stage 3 tax reduction

The redesigned stage 3 tax cuts, which will go into effect on July 1, 2024, have been approved by Parliament. The amendments directed the tax cut’s benefits towards individuals whose taxable income was less than $150,000.

Small business incentive programmes for investment

The application of a higher immediate asset write-off threshold to smaller enterprises during the 2024-25 income year is yet to be determined. 

Parliament has yet to approve the increased threshold of $20,000 that was proposed in the 2023-24 Budget (the Senate raised the threshold to $30,000. In order to incentivize investment, it is critical that legislation authorising such measures be swiftly enacted by Parliament. 

This will provide business operators with the necessary assurance to allocate additional funds towards investment endeavours. 

Energy expense relief

In an effort to alleviate the budgetary strains of small businesses and low-income households, the Prime Minister has alluded to the possibility of additional energy bill relief. Subject to support from state and territory administrations, the measure is contingent.  

Federal budget 2024-25 is set to be handed down by the Treasurer on Tuesday 14 May, stay on top of the budget updates with us in May, find out how Federal Budget 2024-25 will impact individuals, businesses, tax, superannuation and other areas.