Breaking Down Australia's Budget 2024/25

Breaking Down Australia’s Budget 2024/25

By: Nfinity Financials0 comments

The Australian Labor Party’s budget for 2024/25, presented by Federal Treasurer Jim Chalmers MP, is a plan to help people deal with high living costs, improve housing, assist small and medium-sized enterprises (SMEs), and take care of important infrastructure and social welfare needs. Let’s take a closer look at the main points of this budget and how they affect different parts of Australian society.

Housing Measures

This year’s budget is going towards helping with housing. This is part of a bigger plan to put $32 billion into housing by 2022. Here’s what they’re doing:

  • Making Commonwealth Rent Assistance rates higher by another 10%, to help people with rent.
  • Helping community housing providers get more money through the Affordable Housing Bond Aggregator.
  • Giving out cheaper loans to help build new social and affordable homes.
  • Putting money aside for emergency housing, especially for groups like women and kids escaping domestic violence.
  • Investing in things like roads and pipes to support building new homes and making more social housing.
  • Getting more construction workers by offering more training and money support.

Treasurer Chalmers is really aiming high, wanting to build 1.2 million new homes in the next five years. He’s saying it’s not just about houses, but also building stronger communities.

Measures for SMEs

The government knows how important small and medium-sized enterprises are for making the economy grow. So, they’re keeping the instant asset write-off scheme going for another year. This move aims to provide cash flow support to millions of small businesses, with an allocation of $290 million.

They’re also doing other things to help small businesses, like making sure they get paid faster, encouraging them to use eInvoicing, and giving them support for their finances and mental health. And they’re giving $625 million to help farmers and rural communities deal with climate change and drought.

Energy Rebate

To help with higher energy bills, more than 10 million households will get $300 off their electricity bills. Small businesses that qualify will get $325. This discount will come every three months, starting from July 1.

Digital ID

The budget is putting aside over $288 million for four years to make the Digital ID scheme bigger. 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 cuts will come into effect from 1 July 2024, providing relief to taxpayers.
  • Changes in annual HECS indexation will be based on the lower of the Consumer Price Index or the Wage Price Index, easing the financial burden on students.
  • 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 introduced a budget that deals with both short-term and long-term economic issues. By focusing on making housing more affordable, helping small businesses, and dealing with energy costs and digital identity, the government wants to promote fair growth and strength across different parts of society.

As Australia faces uncertain times, this budget shows a promise to use the country’s strengths and chances while making sure people are doing well and thriving. With careful money management and smart investments, the government wants to make a better and safer future for everyone in Australia.

For more detailed insights and guidance on the complexities of the Australian housing market, contact Nfinity Financials. You can read our article and also book a consultation call at 1300 GET LOAN.

Related post

Leave A Comment