2024/25 Budget Update

In this newsletter, we cover some of the key proposed changes as announced by Treasurer as part of the 2024/25 Federal Budget.
Importantly, all announcements are proposed only and will need to be passed into legislation before becoming law.

Please click on the following topic of interest to learn more:

Individuals Update
Business Update

Individuals Update 

Stage 3 Personal Tax Cuts

The Government has confirmed the revised stage three personal tax cuts that were announced prior to the Federal Budget being handed down and which have already been enacted into law.

2024 Income Year 

From the 2025 income year 

Tax Rate 


Tax Rate 



$0 - $18,200 


$0 - $18,200 


$18,201 - $45,000 


$18,201 - $45,000 


$45,001 - $120,000 


$45,001 - $135,000 


$120,001 - $180,000 


$135,001 - $190,000 


$180,001 + 


$190,001 + 


$300 Energy Relief for Households

Households will receive a credit of $300 on their energy bills credited as automatic quarterly instalments across 2024-25. Energy relief will also be provided to eligible small businesses in the form of a $325 rebate. 

Capping Indexation of HELP Debts 

As previously announced, the Government will cap the HELP indexation rate to be the lower of either the CPI or the Wage Price Index (WPI) with effect from 1 June 2023. The change will apply to all HELP, VET Student Loans, Australian Apprenticeship Support Loans and other student support loan accounts that existed on 1 June 2023.  

By changing the calculation of HELP indexation from 1 June 2023, the indexation rate is reduced from:  

  • 7.1% to 3.2% in 2023, and  
  • 4.7% to around 4% in 2024.  

The change resolves an issue for more than 3 million Australians with a HELP debt when the CPI indexation rate spiked to 7.1% last year. 

Superannuation on Paid Parental Leave 

As previously announced, superannuation will be paid on Paid Parental Leave payments from 1 July 2025.  

Eligible parents will receive an additional payment based on the superannuation guarantee (i.e. 12% of their PPL payments), as a contribution to their superannuation fund.  

this payment is in addition to the changes that saw families provided with an extra two weeks of leave (22 weeks total), which will increase to 24 weeks from July 2025 and 26 weeks from July 2026. 

Freezing Social Security Deeming Rates 

When calculating Centrelink and DVA payments, rather than assessing the actual income from financial investments, a deemed rate of return based on the total value of these investments is assumed. Some common examples of financial investments include bank accounts, term deposits, shares and managed funds.  

The Government proposes to freeze the deeming rates (shown below) until 1 July 2025: 

Deeming Rate 


Pensioner Couple 


Up to $60,400 

Up to $100,200 


Amounts over $60,400 

Amounts over $100,200 

Business Update 

$20,000 Instant Asset Write-off
(not yet law)

Small businesses, with an aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2025. This measure extends the 2023-24 Budget announcement to the 2024-25 financial year.
“Immediately deductible” means a tax deduction for the asset can be claimed in the same income year that the asset was purchased and used (or installed ready for use).
The write-off applies per asset, so a small business can deduct the cost of multiple assets.
Note - The increased small business instant asset write-off announced in the previous years’ Federal Budget is not yet law meaning the current legislated write-off limit is technically still $1,000. Senate amendments proposed increasing the threshold from $20,000 to $30,000 and expanding the measure to apply to medium entities however this amendment was not passed.

$325 Energy Relief for Small Business

Around one million small businesses will receive $325 off their energy bills over 2024–25. The support will apply as an automatic quarterly credit to energy bills.

Small Business Support Services

The Government has announced $41.7 million in funding over four years from 2024–25 for a series of initiatives to support small businesses:

  • Improving payment times to small businesses including naming and shaming - increased resourcing for the Payment Times Reporting Regulator so that it can deliver its expanded functions, which include naming slow paying businesses.
  • Mental health and financial wellbeing of small business owners – Extending the New Access for Small Business Owners program, which provides tailored, free and confidential mental health support and Extending the Small Business Debt Helpline.
  • Franchising sector code changes - In response to the 2023 Schaper Review of the Franchising Code of Conduct, the Government is providing $3 million to Remake and improve the Code, Promote best practice conduct between franchisors and franchisees and make it easier for small businesses to operate in the sector including through better access to dispute resolution.
  • Access to justice - $2.6m in funding to the Australian Small Business and Family Enterprise Ombudsman. The ASBFEO assists and advocates for small businesses including helping to resolve disputes.
Contact Us

For further details on any of the above, please contact us.

HC Partners Pty Ltd • Oscar Street, Umina Beach • 02 4341 9000 


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