Federal Budget 2024-25: Key Highlights for Individuals and SMEs


Continuing its commitment to cost-of-living relief, Treasurer Jim Chalmers has announced significant changes to the Medicare levy low-income threshold, benefiting singles, families, seniors, and pensioners. The new thresholds where taxpayers do not pay the Medicare levy are:

  • Singles: Increased from $24,276 to $25,000
  • Families: Increased from $40,939 to $42,500
  • Dependent Child/Student: Additional $3,800 per dependent (up from $3,760)
  • Single Seniors and Pensioners: Increased from $38,365 to $39,800
  • Family Seniors and Pensioners: Increased from $53,406 to $55,000


Starting 1 July 2026, employers must pay superannuation guarantee contributions concurrently with employees’ salaries and wages. This reform aims to improve the frequency and accuracy of super payments.

Currently, employers are required to pay super guarantee contributions quarterly, with due dates on 28 April, 28 July, 28 October, and 28 January.

Tax Measures:

  • Energy Efficiency Incentive: An additional 20% tax deduction on eligible depreciating assets that support electrification and energy efficiency. The Small Business Energy Incentive applies to up to $120,000 of total expenditure, with a maximum bonus deduction of $24,000.
  • GDP Adjustment Factor: Reduced from 6% to 5% for PAYG and GST instalments, providing cash flow support to small businesses and eligible individuals.

Instant Asset Write-Off:

Small businesses with an annual turnover of less than $10 million can continue to deduct the total cost of eligible assets immediately. The $20,000 instant asset write-off for small businesses, previously in place for 2023-24, is extended through 2025.

Cost-of-Living Relief:

Starting July 2024, eligible households will receive up to $550 in electricity bill relief, and small Businesses will receive up to $700 aimed at offsetting rising energy costs.

Passenger Movement Charge:

The Passenger Movement Charge will increase by $7 from 1 July 2024. The additional revenue will fund tourism-related infrastructure and marketing initiatives, enhancing Australia’s appeal as a travel destination.

Eligibility Criteria for Build-to-Rent (BTR) Projects:

The Budget includes measures to attract foreign investment in BTR projects, including maintaining a 50% cap on foreign ownership and requiring projects to have a minimum of 60 units (up from 50).

Overall, the 2024-25 Australian Federal Budget introduces several initiatives to support small and medium businesses, stimulate foreign investment, and promote a fairer society. Businesses should review the new measures and ensure they meet eligibility criteria to benefit fully.

If you have any concerns or questions regarding these changes, please contact us at 1300 225 552 or via email at jlc@jlcassociates.com.au.


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