For Businesses
Temporary Increase to the Instant Asset Write-Off
Under current law, the small business instant asset write-off threshold is (less than) $1,000 for the 2025 income year.
However, the Government has announced that it will temporarily set the instant asset write-off threshold for small business entities at (less than) $20,000 for the 2025 income year.
Small businesses with an aggregated annual turnover of less than $10 million will generally be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2025. The asset threshold applies on a ‘per asset’ basis, so small businesses can instantly write off multiple assets.
Assets valued at $20,000 or more (i.e., which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.
The provisions that prevent small businesses from re-entering the simplified depreciation regime for five years if they opt-out will continue to be suspended until 30 June 2025. From 1 July 2025, the instant asset write-off threshold will revert back to (less than) $1,000.
Relieving Energy Bill Pressures
The Government is providing direct energy bill relief for small businesses. The Budget provides additional energy bill relief of $325 to eligible small businesses, to be paid in installments throughout 2024-25.
Building Cyber Resilience for Small Businesses
The Government is supporting small businesses to be secure online while they utilise digital opportunities, by funding the following:
- Cyber Wardens program to provide free, online training for small business owners and their staff to help drive cultural change and a cyber safe mindset in Australian small businesses.
- Small Business Cyber Resilience Service to help small businesses build their cyber resilience and provide support when affected by a cyber incident.
- Cyber Health Check online interactive tool to enable small and medium businesses to self-assess their cyber security maturity.
The Government is also developing a ransomware playbook to provide guidance on how to prepare for, respond to and recover from, a ransomware or cyber extortion incident.
For Individuals
Personal Income Tax Measures
From 1 July 2024, the revised stage three personal tax cuts effected by the Government will provide some tax relief to income earners for the 2024/25 financial year. The following table outlines the marginal income tax rates and thresholds that apply for resident individuals from 1 July 2024, plus for comparative purposes the rates and thresholds for the 2023/24 financial year.
Australian Resident Individual Income Tax Rates
| 2024 Income Year | From the 2025 Income Year | ||
| Tax Rate | Thresholds | Tax Rate | Thresholds |
| 0% | $0 – $18,200 | 0% | $0 – $18,200 |
| 19% | $18,201 – $45,000 | 16% | $18,201 – $45,000 |
| 32.5% | $45,001 – $120,000 | 30% | $45,001 – $135,000 |
| 37% | $120,001 – $180,000 | 37% | $135,001 – $190,000 |
| 45% | $180,001 + | 45% | $190,001 + |
Superannuation on Paid Parental Leave
The Government has announced that it will pay superannuation on Commonwealth government-funded Paid Parental Leave for births and adoptions on or after 1 July 2025.
Eligible parents will receive an additional payment based on the Superannuation Guarantee (12% of their Paid Parental Leave payments), as a contribution to their superannuation fund.
Freezing Social Security Deeming Rates
The Government will freeze social security deeming rates at their current levels for a further 12 months until 30 June 2025 to support age pensioners and other income support recipients who rely on income from deemed financial investments, as well as their payment, to manage cost of living
pressures.
Tertiary Education System Reforms
The Government will provide funding to implement the first stage of reforms to Australia’s tertiary education system. Of note, this includes funding:
- to limit the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation; and
- to establish a new ‘Commonwealth Prac Payment’ of $319.50 per week (benchmarked to the single Austudy rate) from 1 July 2025 for tertiary students undertaking supervised mandatory placements as part of their nursing (including midwifery), teaching or social work studies.
Energy Bill Relief for Households
The Government is providing direct energy bill relief for every Australian household. From 1 July 2024, all households will receive a $300 rebate, which will be automatically applied to their electricity bills in quarterly instalments.