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Australian Federal Budget 2024–25

On Tuesday 14 May 2024, Treasurer Jim Chalmers handed down the Federal Budget for the 2024–25 financial year


A surplus is forecast for the 2023–24 financial year, before the budget balance returns to deficit in 2024–25 and beyond. Although a surplus of $9.3 billion in 2023–24 is now expected – revised up from a $1.1 billion deficit forecast just six months ago – the budget bottom line is forecast to be a cumulative $13.9 billion worse off over the four years to 2026–27.

The Budget centred on providing cost-of-living relief and investing in the Future Made in Australia Act to support medium-term economic growth. The result is a relatively large increase in government spending over the next four years, potentially putting further upward pressure on inflation.

The 2024–25 Budget includes two key centrepieces:

1. A range of measures designed to ease cost-of-living pressures

Measures announced prior to budget night:

  • Redesigned Stage 3 tax cuts 
  • Payment of superannuation on paid parental leave 
  • Wage increases for workers in a number of care sectors 
  • ‘Prac payments’ for teaching, nursing, and social work students  
  • Reducing the HECS debt of around 3 million graduates 

Measures announced on budget night:

  • Energy bill relief to the tune of $300 for all households and $325 for one million small businesses 
  • 10% increase in Commonwealth Rent Assistance 
  • Cheaper medicines 
  • Targeted support for JobSeeker recipients with a partial capacity to work 


2. Highlights of the Future Made in Australia Act

The Government unveiled plans to spend $22.7 billion over the next decade on initiatives like:

  • Production tax incentives to encourage the supply of hydrogen and critical minerals
  • Government support for domestic manufacturing of solar panels
  • Investment in PsiQuantum – an Australian-founded quantum computing company
  • Funds to support battery production and unlock renewable energy capacity


Additional announcements in the Budget include: 
  • A payment of $5,000 to help meet the costs of leaving a violent relationship 
  • Money to boost the number of skilled workers in the construction and housing sector, with 20,000 fee-free TAFE places including 5,000 places for pre-apprenticeships 
  • An additional $1 billion to help states and territories build more housing, and a further $1.9 billion in loans to help build 40,000 social and affordable homes
  • Funding to streamline and improve Australia’s approach to attracting foreign investment, with a focus on protecting the national interest 


Download the Federal Budget Tax Report 2024-25

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