{"id":1660,"date":"2024-05-17T21:27:45","date_gmt":"2024-05-17T11:27:45","guid":{"rendered":"https:\/\/www.bantacs.com.au\/Jblog\/?p=1660"},"modified":"2025-01-23T15:21:56","modified_gmt":"2025-01-23T05:21:56","slug":"federal-budget-2024-2025","status":"publish","type":"post","link":"https:\/\/www.bantacs.com.au\/Jblog\/federal-budget-2024-2025\/","title":{"rendered":"Federal Budget 2024-2025"},"content":{"rendered":"<div class=\"entry\">\n\n\n<p><\/p>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2024\/05\/2024-budget.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download PDF<\/a><\/p>\n\n\n\n<p><strong>2024-2025 Federal Budget Summary<\/strong><\/p>\n\n\n\n<p><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong>This is a very succinct summary of the budget, just the parts that we consider relevant to our clients\u2019 financial decisions.&nbsp; There is plenty of detail available on web sites and in the newspapers, this blog is intended to help you just get the information you need in a way that relates to your situation.&nbsp;<\/p>\n\n\n\n<p><strong>Small Business Immediate Asset Write Off<\/strong><\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp; Businesses you can now consider holding off spending money on new plant and equipment to utilise the immediate write off.&nbsp; The $20,000 cap announced in the 2023 budget was changed to $30,000 in the senate by the LNPs so still has not passed through parliament. &nbsp;The budget papers make it very clear the government is standing its ground on a $20,000 cap. &nbsp;The bill from the last budget still not having made its way through parliament has put businesses in a difficult position.&nbsp; Now at least businesses do not have to race for the 30<sup>th<\/sup> June 2024 deadline without even knowing what the cap will end up being and whether it will even be passed.&nbsp; Purchases can now be delayed, as long as they are installed ready for use by 30<sup>th<\/sup> June 2025.&nbsp; Though with tax brackets coming down in the 2024-2025 financial year a tax deduction now, before 30<sup>th<\/sup> June 2024 is worth more in tax savings.&nbsp;&nbsp; The $20,000 is net of GST if the business is registered for GST.&nbsp; Note the cost must actually be under $20,000 ie $19,999.&nbsp; The cap applies to each item so multiple items can be purchased.&nbsp; It would be unwise to rely on the $30,000 cap, proposed by the senate, making its way through Parliament.<\/p>\n\n\n\n<p><strong>Increase in Rent Assistance<\/strong><\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Before landlords rub their hands together with rent assistance payments rising by 10%.&nbsp; The absolute maximum your social security recipient tenant will receive is less than $10 per week.&nbsp; How is that!&nbsp; Rents have doubled and the government is giving tenants an extra 10%.&nbsp; This comes into effect on 20<sup>th<\/sup> September 2024.&nbsp; Note last September, 2023 rent assistance went up 15%.<\/p>\n\n\n\n<p><strong>HECS and HELP Debts<\/strong><\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp; As previously announced, the inflationary up lift to HECS debts that happens every 1<sup>st<\/sup> June will now be measured on the lower of CPI or Wages Growth.&nbsp; This will be back dated to 1<sup>st<\/sup> June 2023 so all those students who experienced an uplift of 7.1% last year will have it reduced to 3.2%.&nbsp;<\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp; Our experience is that if you have paid off your HECS debt and then through an adjustment become entitled to a refund it will just turn up in the bank account you list on your tax return with ATO in the description.&nbsp;<\/p>\n\n\n\n<p><strong>Apprentices<\/strong><\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp; Over the next 4 years, starting 1<sup>st<\/sup> July 2024 the government will make a payment of $5,000 to apprentices in priority occupations and pay a $5,000 subsidy to employers of apprentices in priority occupations.&nbsp;&nbsp;<\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp; The priority occupations are listed here &nbsp;<a href=\"https:\/\/www.apprenticeships.gov.au\/support-and-resources\/financial-support-apprentices-priority-occupations\">https:\/\/www.apprenticeships.gov.au\/support-and-resources\/financial-support-apprentices-priority-occupations<\/a>&nbsp; with lots of useful information about each occupation, such as likely wage and future demand.&nbsp; There are also other incentives for apprentices on these sites <a href=\"https:\/\/www.apprenticeships.gov.au\/support-and-resources\/financial-support-employers\">https:\/\/www.apprenticeships.gov.au\/support-and-resources\/financial-support-employers<\/a> &nbsp;and&nbsp;&nbsp; <a href=\"https:\/\/www.apprenticeships.gov.au\/support-and-resources\/incentives-explorer\">https:\/\/www.apprenticeships.gov.au\/support-and-resources\/incentives-explorer<\/a><\/p>\n\n\n\n<p><strong>ATO Recovering of Old Tax Debts<\/strong><\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp; Legislation will be introduced to give the ATO discretion not to recover old debts from before 1<sup>st<\/sup> July, 2017.&nbsp; Some taxpayers have experienced the ATO withholding their current refund to cover an old debt on which recovery action had ceased years ago.&nbsp; Taxpayers were caught out with no records to challenge the claim.&nbsp; The ATO stated that they had no choice, that is what the law required them to do.&nbsp; Now the ATO can apply its discretion not to recover the debt and that is their current policy in relation to debts from back to before 1<sup>st<\/sup> July, 2017.<\/p>\n\n\n\n<p><strong>Paid Parental Leave<\/strong><\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp; Superannuation will be paid on government parental leave starting 1<sup>st<\/sup> July 2025.&nbsp; So don\u2019t get pregnant just yet. &nbsp;&nbsp;Another good reason to delay, is the number of weeks PPL you will be entitled to will increase to 24 weeks from 1<sup>st<\/sup> July 2025 and 26 weeks from 1<sup>st<\/sup> July 2026.<\/p>\n\n\n\n<p><strong>What you don\u2019t need to worry about \u2013 just so you are sure<\/strong><\/p>\n\n\n\n<p>Foreigners CGT changes after 1-7-2025.&nbsp; This is all about the big end of town tax avoidance.<\/p>\n\n\n\n<p>Likewise, the Future Made In Australia Incentives are directed at &#8211; industries involved in renewable hydrogen, green metals, low carbon liquid fuels, refining and processing of critical minerals and manufacturing of clean energy technologies including in solar and battery supply chains.&nbsp; Not much detail yet but benefits are unlikely to apply to small businesses.&nbsp; Hydrogen certainly seems to be in favour with the government.<\/p>\n\n\n\n<p>Individuals receive $300 and businesses $325 off their electricity bills.&nbsp; This will all be taken care of through your electricity provider.&nbsp; Note it is not an instant windfall it will be credited in 4 quarterly instalments.<\/p>\n\n\n\n<p><strong>What to do now<\/strong><\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp; Next year most people will drop into a lower tax bracket.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2024\/05\/2024-2025-tax-brackets.png\"><img loading=\"lazy\" decoding=\"async\" width=\"755\" height=\"300\" src=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2024\/05\/2024-2025-tax-brackets.png\" alt=\"\" class=\"wp-image-1663\" srcset=\"https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2024\/05\/2024-2025-tax-brackets.png 755w, https:\/\/www.bantacs.com.au\/Jblog\/wp-content\/uploads\/2024\/05\/2024-2025-tax-brackets-300x119.png 300w\" sizes=\"auto, (max-width: 755px) 100vw, 755px\" \/><\/a><\/figure>\n\n\n\n<p>That makes this year a very important year to maximise your tax deductions.\u00a0 For more details on the strategies you should consider go to <a href=\"https:\/\/www.bantacs.com.au\/Jblog\/2024-the-golden-year-of-tax-planning\/#more-1633\">https:\/\/www.bantacs.com.au\/Jblog\/2024-the-golden-year-of-tax-planning\/#more-1633<\/a><\/p>\n\n\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Download PDF 2024-2025 Federal Budget Summary &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This is a very succinct summary of the budget, just the parts that we consider relevant to our clients\u2019 financial decisions.&nbsp; There is plenty of detail available on web sites and in the newspapers, this blog is intended to help you just get the information you need in &#8230;<\/p>\n","protected":false},"author":3,"featured_media":1662,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,21],"tags":[],"class_list":{"0":"post-1660","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tax","8":"category-small-business","9":"anons"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Federal Budget 2024-2025 - Julia&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bantacs.com.au\/Jblog\/federal-budget-2024-2025\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Federal Budget 2024-2025 - 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