2024/25 Budget Changes

1. Personal Income Tax Cuts:

• From 1 July 2024, the tax rates will be adjusted:

• The 19% tax rate will be reduced to 16%.

• The 32.5% tax rate will be reduced to 30%.

• The threshold for the 37% tax rate will increase from $120,000 to $135,000. 

2. Medicare Levy Low-Income Thresholds:
The Medicare levy low-income thresholds will be increased, ensuring more than one million low-income taxpayers continue to be exempt from the levy or pay a reduced rate.

3. Energy Bill Relief:
Households will receive a $300 energy rebate, and eligible small businesses will receive $325. This measure aims to alleviate cost-of-living pressures and reduce headline inflation.

4. Commonwealth Rent Assistance:
The maximum rates of Commonwealth Rent Assistance will be increased by a further 10%, building on previous increases, to help renters cope with rising housing costs.

5. Student Debt Relief:
The Government will cut $3 billion in student debt for more than three million Australians. This includes changes to the Higher Education Loan Program (HELP) indexation rate, which will be capped at the lower of either the Consumer Price Index or the Wage Price Index.

6. Superannuation Contributions:

• The Superannuation Guarantee (SG) rate will increase from 11% to 11.5% on 1 July 2024 and is scheduled to rise to 12% on 1 July 2025. This ensures employers contribute more to their employees' super funds.

• The concessional (before-tax) super contributions cap will increase from $27,500 to $30,000.

• The non-concessional (after-tax) super contributions cap will increase from $110,000 to $120,000. The bring-forward arrangement allows contributions up to $360,000 over three years.