The Australian government has just unveiled its highly anticipated Federal Budget, focusing on several critical areas that promise to impact the lives of Australians significantly. So, how will these initiatives affect you and your family? Here are five key takeaways from the 2024/2025 Federal Budget that are likely to make an impact.
1. Stage 3 Personal Income Tax Cuts
The government has confirmed the revised stage 3 tax cuts and the following table outlines the stage 3 tax cuts for different taxable income bands as well as the impact on fortnightly take home wages.
| Taxable Income | Stage 3 Tax Cut | Additional take home pay per fortnight |
| $20,000 | $0 | $0 |
| $30,000 | $354 | $14 |
| $40,000 | $654 | $25 |
| $50,000 | $929 | $36 |
| $60,000 | $1,179 | $45 |
| $70,000 | $1,429 | $55 |
| $80,000 | $1,679 | $65 |
| $90,000 | $1,929 | $74 |
| $100,000 | $2,179 | $84 |
| $120,000 | $2,679 | $103 |
| $140,000 | $3,729 | $143 |
| $160,000 | $3,729 | $143 |
| $180,000 | $3,729 | $143 |
| $200,000 | $4,529 | $174 |
| $250,000 + | $4,529 | $174 |
2. Energy Bill Relief For Households
The Government is providing direct energy bill relief for every Australian household. From 1 July 2024, all households will receive a total rebate of $300, which will be automatically applied to their electricity bills in quarterly instalments.
3. Superannuation on Paid Parental Leave
The Government has announced that it will pay superannuation on Commonwealth government-funded Paid Parental Leave for births and adoptions on or after 1 July 2025.
Eligible parents will receive an additional payment based on the Superannuation Guarantee (12% of their Paid Parental Leave payments), as a contribution to their superannuation fund.
4. Temporary Increase To The Instant Asset Write-off for Small Business
Under current law, the small business instant asset write-off threshold is (less than) $1,000 for the 2025 income year.
However, the Government has announced that it will temporarily set the instant asset write-off threshold for small business entities at (less than) $20,000 for the 2025 income year.
Small businesses with an aggregated annual turnover of less than $10 million will generally be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2025. The asset threshold applies on a ‘per asset’ basis, so small businesses can instantly write off multiple assets.
Assets valued at $20,000 or more (i.e., which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.
The provisions that prevent small businesses from re-entering the simplified depreciation regime for five years if they opt-out will continue to be suspended until 30 June 2025.
From 1 July 2025, the instant asset write-off threshold will revert back to (less than) $1,000.
5. Tertiary Education System Reforms
The Government will provide funding to implement the first stage of reforms to Australia’s tertiary education system. Of note, this includes funding:
- to limit the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation; and
- to establish a new ‘Commonwealth Prac Payment’ of $319.50 per week (benchmarked to the single Austudy rate) from 1 July 2025 for tertiary students undertaking supervised mandatory placements as part of their nursing (including midwifery), teaching or social work studies. This will help alleviate the significant financial impact of mandatory placements and increase retention in courses for careers in sectors experiencing shortages.
How will these announcements impact your family?
These initiatives are designed to provide tangible benefits to individuals and families across Australia. But, if you need personalised advice on how these changes might affect your financial situation or are looking for support with loans, tax planning, business support, or financial strategies, our team is here to help. Your financial well-being is always our priority, and we’re here to support you every step of the way.
Explore our services and get in touch with the APS team.
Written by Richard Ferraro, Chief Financial Officer & Head of APS Tax.
Richard is a graduate of the Australian Institute of Company Directors (GAICD) and Fellow Certified Practising Accountant (FCPA) with 3 decades of experience in Financial Accounting, Tax Compliance and Advisory. Prior to the 11 years currently working at APS, Richard was a partner in a top 100 accounting firm, and a Taxation Manager for large corporations such as Nissan Australia, Bendigo and Adelaide Bank, NEC Australia and Australia Post. Richard supports his clients across a wide range of services including tax compliance and advisory services to clients who are Companies, Trusts, Partnerships, Self Managed Super Funds, When Richard isn’t working he enjoys spending time with family and friends, watching the mighty Magpies, and anything to do with cars from F1 to supercars and collectables.