Budget summary for small business 2024/2025
The 2024-25 Australian Federal Budget, delivered by Treasurer Jim Chalmers, focuses on providing cost-of-living relief and fostering medium-term economic growth. Key points relevant to small businesses in Australia include:
Cost-of-Living Relief:
- Small businesses and individuals will benefit from energy bill relief, with a $325 rebate for one million small businesses. Additionally, there are measures to support workers and reduce operational costs.
- Rent relief: From 20 September 2024 The government is providing $1.9 billion over five years from 2023-2024 (and $0.5 billion per year ongoing from 2028-29) to increase all Commonwealth Rent Assistance maximum rates a further 10% (in addition to the 15% increase in the previous Federal Budget).
Tax Incentives and Reforms:
- Stage 3 Tax Cuts: These cuts, starting from 1 July 2024, aim to increase take-home pay by lowering income tax rates. This can boost consumer spending, benefiting small businesses.
- Critical Minerals and Hydrogen Production: New production tax incentives are introduced to encourage supply and innovation in these sectors, potentially opening up new business opportunities and partnerships for small enterprises
- Instant Asset Write Off of $20k being extended another year
Support for Domestic Manufacturing:
- Investment in domestic manufacturing, including solar panel production and renewable energy projects, aims to boost local industries and create opportunities for small businesses involved in these supply chains.
Housing and Workforce Initiatives:
- Funding to build more social and affordable housing and 20,000 fee-free TAFE places (including 5,000 pre-apprenticeships) aims to increase the skilled workforce available to small businesses.
Enhanced Tax Compliance:
- The budget includes measures to improve tax compliance and close loopholes, focusing on short-term rental deductions and foreign resident capital gains. This aims to ensure a fairer tax system for all businesses.
The budget is designed to ease financial pressures on individuals and small businesses while promoting growth and innovation through targeted investments and tax reforms.
As always we've designed Thriday to help your business succeed regardless of budgets or anything else out of your control.
By integrating Banking*, accounting and tax into one platform our goal is to eliminate as much financial admin as we can for you.
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