The Australian Government’s 2024 Federal Budget delivered a mixed bag for Australians, with both good news and potential challenges on the horizon.
Here is a summary from Alex.
Highlights:
Tax Cuts: The Stage 3 tax cuts are confirmed, bringing tax relief for 13.6 million Australians.
Energy Relief: A $3.5 billion package will provide rebates to households and small businesses on their electricity bills.
Rent Assistance: The maximum rates of Commonwealth Rent Assistance are increased by 10%, providing welcome relief for renters.
Medicare Boost: $2.8 billion is allocated to strengthen Medicare, including funds to address health workforce shortages and improve hospital care.
Challenges:
Debt Remains High: Despite a surplus for the current year, net debt is expected to remain at $500 billion, with budget deficits projected for the next four years.
Inflation and Unemployment: While inflation is expected to decrease, unemployment is projected to rise, potentially putting pressure on household budgets.
Other Key Points:
The budget also includes investments in renewable energy, critical minerals, and defence.
Superannuation will be paid on government-funded Paid Parental Leave for parents of babies born or adopted from July 2025.
What it Means for You:
The budget offers various opportunities for Australians, including tax savings, reduced energy bills, and better support for renters. However, it’s important to be mindful of the ongoing challenges like high debt and potential economic fluctuations.
Learn More – GPS Wealth Update:
This update from our licensee group has provided a comprehensive round-up of the budget available here.
Speak with a Financial Planner:
For personalised advice on how the budget might impact your individual financial situation, it’s essential to consult with a qualified financial planner. Contact us to help you navigate these changes and develop a plan to reach your financial goals.
