Federal Budget 2024/25 – An update for employers
The government delivered the Federal Budget for 2024/25 on Tuesday 14 May. Businesses nationwide eagerly anticipated initiatives aimed at tackling ongoing inflation, cost of living relief and opportunities for growth.
We’ve summarised the highlights below. It’s important to note that at the time of publication, these announcements are proposals only. We’ll keep you informed as developments occur.
Super-related announcements
- Superannuation on government paid parental leave
From 1 July 2025, eligible parents will receive 12% superannuation payments on government-funded parental leave, in a move aimed at also bridging the gender super gap. The government will also fund $10 million over two years from 2024/25 to provide additional support for small business employers in administering paid parental leave.
- Protection from scams and fraud
$187 million in new funding over four years to tackle tax and superannuation fraud, including tools to block suspicious activity in real time and a taskforce to recover lost revenue and step in when scammers try to claim fake refunds. The ATO will also receive $23.3 million to continue operating the nation’s e-invoicing network, which acts as an important circuitbreaker for email-based scams.
- Freezing deeming rates to benefit retirees
Continuing the freeze on social security deeming rates until June 30, 2025 allowing pensioners to benefit fully from increased interest paid on deposits and other investments.
Business-related announcements
Acknowledging the tough economic landscape confronting small businesses, the government has unveiled a series of initiatives aimed at easing the financial strain on employers and boosting competition during these challenging times.
- Energy bill relief
From 1 July 2025, energy bill relief will provide $325 for around 1 million small businesses (and $300 for households), going straight on to energy bills.
- Instant asset write-off scheme extended
$20,000 instant asset write-off for businesses with less than $10 million in annual turnover, will be extended for another 12 months.
- Payday super support
Additional funding to help businesses with the move to payday super and small business initiatives to support cashflow and reduce payment times.
- More funding for the Small Business Debt Helpline and NewAccess
In a move prioritising the mental health and financial stability of small business owners, the government announced $10.8 million to extend the reach of both the Small Business Debt Helpline and the NewAccess for Small Business Owners programs.
- Small business ministers meeting to re-commence
The government will establish a national small business strategy and revive the Small Business Ministers’ Meeting as a collaborative platform for federal and state ministers, with the inaugural meeting scheduled for June 2024.
- Support for franchisees and dispute resolution
From 1 July 2025, the government will provide funding to the Australian Small Business and Family Enterprise Ombudsman to help small businesses with legal support.
Where to find out more
This is a snapshot of the announcements for Australian businesses. Want to know more about how this budget might affect you or your employees’ super or your own personal finances? You can read more here.
For more information and to view all the measures that were announced visit budget.gov.au.
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