2024 Federal Budget
In the recently unveiled 2024 Federal Budget, a range of measures has been proposed to assist with the cost of living, streamline personal taxation, boost superannuation, and enhance social security and aged care provisions. While these proposals are subject to potential changes pending legislative approval, they offer a glimpse into potential avenues for financial relief and support.
Cost of Living Relief:
Energy Bill Relief: Commencing from 1 July, Australian households are set to benefit from a $300 energy rebate, with eligible small businesses also slated to receive $325. The timeline for the application of these rebates to accounts is yet to be finalised.
Student Debt Indexation Changes: Proposed adjustments to indexation for Higher Education Loan Program (HELP) holders could see debts increase by the lower of inflation and wage growth. This prospective change, retroactive to 1 July 2023, aims to ease the burden of student loans.
Freeze on PBS Medicines Cost: In a bid to support pensioners and Commonwealth concession cardholders, the maximum co-payment for Pharmaceutical Benefits Scheme (PBS) medicines will be frozen at $7.70 until 31 December 2029. For all other medicare holders, the co-payment of $31.60 will be frozen until 1 January 2026.
Personal Taxation:
Tax Cuts for All Taxpayers: Effective 1 July, it is estimated that around 13.6 million taxpayers will benefit from reduced tax rates under the restructured Stage 3 tax cuts.
Superannuation:
Super on Paid Parental Leave: From 1 July 2025, recipients of Government-funded Paid Parental Leave will receive Superannuation Guarantee contributions mirroring those made by employers under the Superannuation Guarantee, which will be 12% from 1 July 2025.
Social Security and Aged Care:
Frozen Deeming Rates: Deeming rates used to evaluate income from financial investments will remain unchanged until 30 June 2025, potentially offering relief to Age Pensioners and other income support recipients.
Support for Renters: Effective 20 September 2024, the maximum Commonwealth Rent Assistance payment is set to increase by 10%, in addition to regular indexation.
Enhanced Work Flexibility for Carers: Beginning 20 March 2025, Carer Payment recipients will enjoy increased flexibility to work up to 100 hours within a four-week period without impacting their payment.
Additional Home Care Packages: In the 2024/25 fiscal year, an additional 24,100 home care packages will be introduced to provide ongoing support for older Australians, facilitating the ability to remain in their homes longer.
If you have any questions, please speak with your financial adviser, Antoinette Mullins or Tanya Oddo, who can help you understand how these proposed changes could apply to you. We will be in touch if there are any changes needed to your plan if you are in a service arrangement with Steps.