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Budget 2024 for 2024-25

Dr Jim Chalmers Federal Treasurer

The Australian Federal Budget for 2024 was handed down on Tuesday, 14th May 2024, by the Treasurer Dr Jim Chalmers

A number of the notable announced measures are listed below.

* Indicates those measures which have been previously announced.

See also links below : Budget speech in full (video + transcript) and the Budget Papers

=> Jump to reading list =>

2024 Budget Measures

Announced measures are subject to the passage of enabling legislation.

A revised personal income tax tax scale applies from 1 July 2024. See Tax rates 2024-25. The Medicare levy threshold has also been increased. *

Student loan indexation formula has been revised for 2024 based on inclusion of Wage Price Index as an alternative. See HECS/HELP loans.*

Single Jobseeker recipients with a partial capacity to work up to to 14 hours per week will receive a higher rate from September 20, 2024. See Services Australia and Budget Paper No. 2 page 164

Carers: From 20 March 2025, the existing 25 hour per week participation limit for Carer Payment recipients will be increased to 100 hours over four weeks and only apply to employment. See Services Australia and Budget Paper No. 2 page 166

Rent assistance: Maximum rates to be increased by 10% from 20 September 2024. See Budget Paper No. 2 page 167.

PBS scripts cost for pensioners and concession card holders frozen for 5 years at a cap of $7.70, and a general cap of $31.60 for 2024 and 2025. See Budget Paper No.2, Treasurer’s speech transcript, Services Australia

Social Security Deeming rates frozen for Age pensioners and other income support recipients until 30 June 2025. See deeming rates.

Energy Bill Relief Fund: $300 rebate to all Australian households and a $325 rebate to eligible small businesses on 2024–25 bills to provide cost of living relief. See Minister’s media release.

Small Business Support – $20,000 instant asset write-off: existing measures due to end on 30 June 2024 have been extended to 30 June 2025. See Small Business Depreciation and Tax Office article here.

Paid Parental Leave government funded recipients will obtain an additional payment to their super fund of 12% based on eligibility on or after 1 July 2025. See Minister’s media release. *

Prac Payments: tertiary students undertaking supervised mandatory placements as part of their nursing (including midwifery), teaching or social work studies will receive a Commonwealth Prac Payment of $319.5 per week (benchmarked to the single Austudy rate) from 1 July 2025. Budget Paper No. 2 page 62 *

Foreign Residents CGT – measures commencing 1 July 2025 intended to ensure foreign residents pay their fair share of tax. See Grant Thornton and PWC summaries (links below) and Budget Paper No. 2 page 17.

Includes measures to:

  • clarify and broaden the types of assets that foreign residents are subject to CGT
  • amend the point-in-time principal asset test to a 365-day testing period
  • require foreign residents disposing of shares and other membership interests exceeding $20 million in value to notify the ATO in advance.
  • introduce penalties from 1 July 2026 on the underpayment of royalty withholding tax for large global groups

Budget 2024 References & Additional Information

Budget 2024 News Reports

Treasurer defends budget to own constituents demanding more cost-of-living relief

Australia budget 2024: the six graphs you need to see

Energy bill relief, rent assistance and cheaper medicines feature in budget aimed at cutting living costs

Federal Budget 2024: Winners and Losers

Medicine price freeze and $2.2bn for home and aged care among Australia’s federal budget health measures

Treasurer’s Speech In Full

Opposition Leader Delivers Budget Reply

Pre-Budget News

What’s in this year’s federal budget? Here are all of the announcements we already know about

Jim Chalmers flags cost of living help for job seekers in federal budget

Millions pledged to cover fee-free TAFE to get more workers into housing construction

=> Govt Press Release Growing Australia’s construction workforce to build more homes

$121 a week: Treasurer reveals ‘additional’ Centrelink cash boost for Federal Budget 2024

What to expect from the 2024 Australian Federal Budget

Government moves to fund students on university placements for teaching, nursing and social work

HECS/HELP Changes

Minister’s Media Release (5 May 2024): Cutting student debt for more than three million Australians.

(Note that the latest release of the WPI which expected to be the basis of the 2024 indexation calculation, is due for publication on 15 May 2024).

Labor to wipe $3bn from Hecs and Help debts through indexation changes

HECS indexation to be overhauled in budget with $3 billion in student debt ‘wiped out’

..more details here

‘No big cash splashes’ in budget, says Chalmers, but more of budget windfalls will be spent

Chalmers: Surplus still the target, small business tax rate unlikely to change in federal budget

Super To Be Payable on Government Parental Leave payments from 1 July 2025. More details to be released in the 2024-25 Budget. See media release – Paying super on Government Paid Parental Leave.

This page was last modified 2024-05-16