What does this yearโs Federal Budget mean for middle-market businesses and individuals?
Jim Chalmersโ 2024-25 Budget seeks to find a balance between relief and restraint, with power bill rebates for households and small businesses, cheaper medicines and announced tax cuts all aimed at tackling the unrelenting cost-of-living crisis, but in a way which doesnโt unduly add to the current inflationary environment. Small businesses received a continuation of the instant asset write-off measures for purchases under $20,000, while a variety of types and sizes of business will benefit from one of the centrepieces of the Budget, the Future Made in Australia package. However, businesses and individuals have been put on notice that the ATOโs review, audit and taskforce programs are here to stay, with increased funding over longer periods to boost tax collections from individuals overclaiming deductions right through to multinationals with complex affairs.
Federal Budget Debrief webinar
Our 2024 Federal Budget Debrief webinar with Tax Directors Raffi Tenenbaum and Danielle Constantine discusses the proposed Budget spending and how this will impact Australian businesses.
Federal Budget Debrief webinar
15 May 2024 10am AEST
Join us the day after Budget night, where our Tax Directors Raffi Tenenbaum and Danielle Constantine will discuss the proposed Budget spending and how this will impact Australian businesses.
3 take-outs for SMEs
Use the instant asset write-off
An extension of the $20,000 instant asset write-off for small businesses until 30 June 2025 has been announced.
Be ready for ATO audit activity
Considerable further funding for the ATO to continue and expand their audit activities and taskforces.
A Future Made in Australia
A package aimed at creating new jobs and opportunities by maximising the benefits of Australia’s move to net zero carbon emissions.
3 take-outs for SMEs
Use the instant asset write-off
An extension of the $20,000 instant asset write-off for small businesses until 30 June 2025 has been announced.
Be ready for ATO audit activity
Considerable further funding for the ATO to continue and expand their audit activities and taskforces.
A Future Made in Australia
A package aimed at creating new jobs and opportunities by maximising the benefits of Australia’s move to net zero carbon emissions.
Key policies
1. Cost of living relief
A raft of measures will include access to cheaper medicine, an increase in Commonwealth Rent Assistance, HELP debt relief and more.
2. A Future Made in Australia
Labor’s hallmark package aims to to maximise the economic and industrial benefits of Australiaโs move to net zero. Priority industries have been identified.
3. Property and construction sector stimulus
New Federal Government funding for housing and infrastructure and initiatives to boost the available skilled workforce will benefit the property and construction industries.
Key policies
1. Cost of living relief
A raft of measures will include access to cheaper medicine, an increase in Commonwealth Rent Assistance, HELP debt relief and more.
2. A Future Made in Australia
Labor’s hallmark package aims to to maximise the economic and industrial benefits of Australiaโs move to net zero. Priority industries have been identified.
3. Property and construction sector stimulus
New Federal Government funding for housing and infrastructure and initiatives to boost the available skilled workforce will benefit the property and construction industries.
Insights from our budget spokespeople
โ
While we commend the governmentโs support for small businesses and further funding of the ATOโs compliance programs, we canโt help but feel this budget represents a missed opportunity for genuine tax reform. The core elements of this budget seem to assist the existing tax framework rather than strive for the comprehensive overhaul that will benefit Australians in the long term.โ
Todd Want
Director, Tax Services
โ
I was pleased to see that superannuation will be paid on Paid Parental Leave from 1 July 2025 and that payday superannuation will proceed. These measures will assist in increasing super balances for women, whose balances continue to lag behind those of men. Disappointingly there were no changes to the additional tax on super balances above $3 million, which continues to be debated in parliamentโ
Tricia Kleinig
Director, Superannuation
โ
I was hoping that Dr Chalmers would show more restraint in spending as there is a risk that interest rates remain higher for longer. Itโs disappointing that there was no alteration to the Division 296 Superannuation tax as people with superannuation balances of over $3 million will need to have a comprehensive review of their wealth structures and consider the types of assets in each of their entities. Those with superannuation balances of over $3 million who cannot transfer funds out of super, may instead seek to invest in low-growth, high-income investments within super and hold any high-growth assets in other structures.”
Scott Montefiore
Director, Wealth Advisory
โ
The signature policy of this Budget, Future Made in Australia, has two strong themes โ emissions reduction and strengthening Australiaโs position in a deglobalising world stage. Unfortunately for startups, the main beneficiaries of this budgetโs signature policy, a Future Made in Australia, will be larger businesses in the manufacturing and mining space. There is however a possibility that startups aligned with these themes will somehow be able to benefit, either directly or indirectly. We await additional details to be released by the Government. The $1.7bn innovation fund could support businesses in priority industries while the $1.5bn injection into renewables could support businesses in this space.”
Jack Qi
Director, Tax Services
โ
Unlike last year no significant changes to the MBS but a different tact to relieve cost of living pressure via an additional $3b through cheaper essential medicine under the Eighth Community Pharmacy Agreement and new caps on the maximum co-payment for everyone with a Medicare card which will be welcome relief to those navigating their weekly personal budgets across the essentials. Welcome news for primary care workforce with a proposed weekly Commonwealth Prac Payment for those studying nursery and midwifery.”
Tom Laundy
Director, Business Advisory
โ
The budget initiatives impacting the property industry are largely designed to address social issues. Little new has been done to address the shortage of residential housing. The one policy that has the potential to move the needle is the tax concessions for foreign investors in build-to-rent housing, which was announced previously, and has provided some certainty and clarity with the announcement of the โcommercial foreign investor feeโ which replaces the fees imposed on foreign investors. Combined with the additional amounts committed to the Commonwealth Rental Assistance program the Build to Rent sector may finally start to gain some mainstream traction in Australia.”
Neil Brennan
Director, Business Advisory
โ
On face value, the budget appears to have provided great support to the manufacturing sector by allocating $22.7 billion over the coming 10 years to the Future Made in Australia program. On closer scrutiny, very little of this is allocated to actual manufacturing, particularly in the SME sector. The only real benefit derived is the extension of the $20,000 instant asset write off for small businesses.”
Ian Cattanach
Director, Business Advisory
Insights from our budget spokespeople
โ
While we commend the governmentโs support for small businesses and further funding of the ATOโs compliance programs, we canโt help but feel this budget represents a missed opportunity for genuine tax reform. The core elements of this budget seem to assist the existing tax framework rather than strive for the comprehensive overhaul that will benefit Australians in the long term.โ
Todd Want
Director, Tax Services
โ
I was pleased to see that superannuation will be paid on Paid Parental Leave from 1 July 2025 and that payday superannuation will proceed. These measures will assist in increasing super balances for women, whose balances continue to lag behind those of men. Disappointingly there were no changes to the additional tax on super balances above $3 million, which continues to be debated in parliamentโ
Tricia Kleinig
Director, Superannuation
โ
I was hoping that Dr Chalmers would show more restraint in spending as there is a risk that interest rates remain higher for longer. Itโs disappointing that there was no alteration to the Division 296 Superannuation tax as people with superannuation balances of over $3 million will need to have a comprehensive review of their wealth structures and consider the types of assets in each of their entities. Those with superannuation balances of over $3 million who cannot transfer funds out of super, may instead seek to invest in low-growth, high-income investments within super and hold any high-growth assets in other structures.”
Scott Montefiore
Director, Wealth Advisory
โ
The signature policy of this Budget, Future Made in Australia, has two strong themes โ emissions reduction and strengthening Australiaโs position in a deglobalising world stage. Unfortunately for startups, the main beneficiaries of this budgetโs signature policy, a Future Made in Australia, will be larger businesses in the manufacturing and mining space. There is however a possibility that startups aligned with these themes will somehow be able to benefit, either directly or indirectly. We await additional details to be released by the Government. The $1.7bn innovation fund could support businesses in priority industries while the $1.5bn injection into renewables could support businesses in this space.”
Jack Qi
Director, Tax Services
โ
Unlike last year no significant changes to the MBS but a different tact to relieve cost of living pressure via an additional $3b through cheaper essential medicine under the Eighth Community Pharmacy Agreement and new caps on the maximum co-payment for everyone with a Medicare card which will be welcome relief to those navigating their weekly personal budgets across the essentials. Welcome news for primary care workforce with a proposed weekly Commonwealth Prac Payment for those studying nursery and midwifery.”
Tom Laundy
Director, Business Advisory
โ
The budget initiatives impacting the property industry are largely designed to address social issues. Little new has been done to address the shortage of residential housing. The one policy that has the potential to move the needle is the tax concessions for foreign investors in build-to-rent housing, which was announced previously, and has provided some certainty and clarity with the announcement of the โcommercial foreign investor feeโ which replaces the fees imposed on foreign investors. Combined with the additional amounts committed to the Commonwealth Rental Assistance program the Build to Rent sector may finally start to gain some mainstream traction in Australia.”
Neil Brennan
Director, Business Advisory
โ
On face value, the budget appears to have provided great support to the manufacturing sector by allocating $22.7 billion over the coming 10 years to the Future Made in Australia program. On closer scrutiny, very little of this is allocated to actual manufacturing, particularly in the SME sector. The only real benefit derived is the extension of the $20,000 instant asset write off for small businesses.”
Ian Cattanach
Director, Business Advisory
For commentary on the 2024 Federal Budget, please direct your enquiries to danielle.shaw@williambuck.com
William Buck’s inaugural Indigenous Artists in Residence program
We are honoured to acknowledge the featured artwork from our Artist in Residence Leah Gerrard.
“Dirrang – Red – the significance to the land and especially country. The thing that makes us who we are and where weโre from.”
Our program reflects a commitment to cultural learning, support for artistic expression and the belief in art’s ability to inspire and effect positive change.
William Buck’s inaugural Indigenous Artists in Residence program
We are honoured to acknowledge the featured artwork from our Artist in Residence Leah Gerrard.
“Dirrang – Red – the significance to the land and especially country. The thing that makes us who we are and where weโre from.”
Our program reflects a commitment to cultural learning, support for artistic expression and the belief in art’s ability to inspire and effect positive change.
