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Federal Budget 2024: Key Changes and Support Measures to Manage Cost of Living
Written by
Amanda Hampshire
Published on
May 28, 2024

The Federal Budget delivered this month, Treasurer Jim Chalmers, announced a number of proposals designed to assist Australians manage the current high cost of living. Below is a snapshot of some of those proposals.

Tax Free Threshold Increases
– Tax free thresholds for individuals who are below age pension will increase to $22,575. For individuals of age pension, the thresholds will increase for Singles to $35,813 or for a member of a couple (each), they will increase to $31,888.

$300 Household Energy Bill Relief - All households will receive a yearly $300 energybill rebate which will be paid in quarterly instalments. Eligible smallbusinesses will receive $325 a year.

Student Loans - A capwill be applied to the indexation rate for student loans reducing therate from 7.1% to 3.2% in 2023 and from 4.7% toaround 4% in 2024. The ATO will automatically apply an indexation credit to reduce outstanding loans.

Superannuation on Paid Parental Leave - The Government will now pay superannuation on the Paid Parental Leave scheme which will be paid directly to the recipients superannuationaccount.

Increasing Rent Assistance- To help address current rental affordability challenges,  the maximum rental assistance rate will increase by 10%. This is in addition to the September 2023 increase of 15%.

Cheaper Medicines - There will be a temporary freeze on indexing the Pharmaceutical Benefits Scheme (PBS)co-payment. In 2024, the co-payments are $31.60 for general patients and $7.70 for concessional patients. From 1 January 2025, the Government will introduce a 1-year freeze on indexation for PBS co-payments for general patients and up toa 5-year freeze for concessional patients.

Increasing the flexibility for carers to workand study – Recipients of carer payments will beable to work up to 100 hours over a four-week period. Travel time, education and volunteering will notbe counted within these hours.

Small Business Tax Instant Asses Write Off - The instant assest write-off scheme for small businesses will extend by 12 months until 30 June 2025. Businesses with an annual turnover of less than $10 million can immediately deduct the full cost of eligible assets costing less than $20,000.

All the above proposals couldchange as legislation passes through parliament. Click here to read the full budget documents.

If you would like to discuss your home loan or get a free loan comparison, Contact an Assured Lending Mortgage Broker today.

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