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This year's budget focuses on providing cost-of-living relief, healthcare, education and supporting small businesses.
If you’d like more information on how the budget might affect you or your business check out the full summary Australian Treasury - Federal Budget
Tax cuts for every Australian taxpayer
Tax cuts for every Australian taxpayer
Australians keeping more of what they earn
The Government is delivering tax cuts for all 13.6 million Australian taxpayers from 1 July 2024 to ease cost‑of‑living pressures for middle Australia, return bracket creep, support women and boost labour supply.
From 1 July this year, the Government will:
reduce the 19 per cent tax rate to 16 per cent
reduce the 32.5 per cent tax rate to 30 per cent
increase the income threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
increase the income threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.
Responsible cost‑of‑living relief for middle Australia
Responsible cost‑of‑living relief for middle Australia
Australians are under pressure and tax cuts will help. The Government’s tax changes provide bigger tax cuts for more taxpayers, delivering meaningful cost‑of‑living relief to middle Australia without adding to inflationary pressures.
Superannuation
Superannuation
Super guarantee
From 1 July 2024, the super guarantee, that is - the percentage of your wage that your employer is required to pay into your super account, will increase from 11.0% to 11.5%. The super guarantee will continue to rise in 0.5% increments until it reaches 12% in 2025.
Super on Government funded paid parental leave
Superannuation will be paid on Government funded Paid Parental Leave (PPL) for parents of babies born or adopted on or after 1 July 2025.
Payments will be made annually to individuals’ super funds from 1 July 2026. This will help to reduce the impact of career breaks to care for young children on superannuation balances.
New power bill relief
New power bill relief
$300 energy rebates for every household
The Government is providing $3.5 billion in energy bill relief for all Australian households and around one million small businesses.
From 1 July 2024, more than 10 million households will receive a total rebate of $300 and eligible small businesses will receive $325 on their electricity bills throughout the year.
This is estimated to directly reduce headline inflation by around 1/2 of a percentage point in 2024–25 and is not expected to add to broader inflationary pressures.
Medicare levy
Medicare levy
Increasing the Medicare levy low‑income thresholds
The Government has increased the Medicare levy low‑income thresholds for 2023–24, ensuring more than one million low‑income taxpayers continue to be exempt from the Medicare levy or pay a reduced levy rate.
Support for renters
Support for renters
Boosting Commonwealth Rent Assistance
The Government is providing $1.9 billion over five years to increase maximum rates of Commonwealth Rent Assistance by a further 10 per cent.
This builds on the 15 per cent increase in September 2023 and will take maximum rates over 40 per cent higher than in May 2022 – a combined result of indexation and the actions of this Government.
Support for small businesses
Support for small businesses
Helping small businesses
This Budget’s Small Business Statement reaffirms the Government’s commitment to deliver a better deal for small businesses, with $641.4 million in targeted support.
Improving cash flow
The Government is providing $290 million to extend the $20,000 instant asset write‑off for 12 months. There will be $25.3 million to improve payment times to small businesses and $23.3 million to increase eInvoicing adoption.
Easing cost pressures and reducing the administrative burden
This Budget provides $3.5 billion of energy bill relief, including rebates of $325 to around one million small businesses.
The Government is reducing the administrative burden for small business by abolishing 457 nuisance tariffs and delivering $10 million to provide additional support for small business employers administering the Paid Parental Leave scheme.
Supporting confidence and resilience in the small business sector
This Budget invests a further $10.8 million in tailored, free and confidential financial and mental wellbeing supports for small business owners.
The Government is providing $20.5 million to the Fair Work Ombudsman to help small businesses understand and comply with recent workplace relations changes.
There will be $3 million to implement the Government’s response to the Review of the Franchising Code of Conduct, including remaking and enhancing the Code, and an additional $2.6 million to support more small businesses through alternative dispute resolution.
Supporting students
Supporting students
Debt relief for students
The Government will cut $3 billion in student debt for more than 3 million Australians.
This will provide relief for everyone with Higher Education Loan Program (HELP) and other student loan debt. The integrity and value of the student loan system, which has massively expanded access to tertiary education, will continue to be protected.
In response to the Australian Universities Accord, the Government will cap the HELP indexation rate to be the lower of either the Consumer Price Index or the Wage Price Index.
The Government will backdate this relief to all HELP, vocational education and training (VET) Student Loan, Australian Apprenticeship Support Loan and other student support loan accounts that existed on 1 June 2023.
Cheaper medicines
Cheaper medicines
Safeguarding health outcomes
The Government is working to finalise the new Eighth Community Pharmacy Agreement, supported by up to an additional $3 billion in funding, which will deliver cheaper medicines, improve patient health outcomes and secure a strong community pharmacy sector.
As part of the Agreement, instead of rising with inflation, there will be a one‑year freeze on the maximum Pharmaceutical Benefits Scheme (PBS) patient co‑payment for everyone with a Medicare card and a five‑year freeze for pensioners and other concession cardholders.
This change means that no pensioner or concession card holder will pay more than $7.70 (plus any applicable manufacturer premiums) for up to five years.
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