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The governments third budget has been handed down and below are some of the key components that affect most individuals and businesses.

Personal income tax measures

1.1Personal tax cuts

From 1 July 2024 every taxpayer will receive a tax cut. You can read about this in our previous blog here.


1.2 Increased Medicare levy low-income thresholds

The Government has increased the Medicare levy low-income threshold amounts and phase in ranges for singles, families and seniors and pensioners that apply for the 2024 tax year.

The threshold has been increased up to $26,000 for individuals while the family threshold has been increased to $43,846. For single seniors and pensioners, the threshold has been increased to $41,089 while the family threshold will increase to $57,198.

The family income thresholds will now increase by $4,027 for each dependent child, up from $3,760

1.3 Electricity Bill

Every Australian household will get a $300 rebate on their power bills, and eligible small businesses will receive a $325 rebate.

From July, all households will have a $300 credit automatically applied to their electricity bills.

Around 1 million businesses will receive a $325 deduction off their bills over next financial year, to be applied in quarterly instalments.

Small business measures

2.1 Temporary increase to the instant asset write-off

The Government has announced that it will temporarily extend the instant asset write-off threshold for small business entities at $20,000 until 30 June 2025.
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.

2.2 Building cyber resilience for small businesses

The Government is supporting small businesses to be secure online while they adopt and harness digital opportunities, including through 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.

Other measures

3.1 Foreign residents

The Government will strengthen the foreign resident CGT regime to ensure foreign residents pay their fair share of tax in Australia and to provide greater certainty about the operation of the rules.
The amendments will apply to CGT events commencing on or after 1 July 2025 to:
• clarify and broaden the types of assets that foreign residents are subject to CGT on;
• amend the point-in-time principal asset test to a 365-day testing period; and
• require foreign residents disposing of shares and other membership interests exceeding $20 million in value to notify the ATO, prior to the transaction being executed.

3.2 Passports

Australian passports may already be some of the most expensive in the world but a new fee will give travellers access to fast-tracked applications from July 1.

People willing to fork out an extra $100 to skip the queue will get access to a five-business-day turnaround of their documents.


3.3 Student Debts

People with HELP debts, VET student loans and Australian Apprenticeship Support Loans and other student loans will have their debts reduced as the federal government changes how the loans accrue interest.

Pending a legislative change that must be passed through parliament, student debts will grow each year at the rate of either the consumer price index or the wage price index — whichever is lower.

This change will also be backdated to June last year, meaning loans for that year will grow at the lower wage index rate of 3.2 per cent instead of the 7.1 per cent inflation rate they were measured at.

Debt repayments won’t change, but it means for someone with a $25,000 debt it will be $1,120 smaller than without the change.

3.4 Sheep Farmers

The government made a pre-election promise to stop the live export of sheep from Australia.

It’s used the federal budget to set the date for the legislated ban, setting aside $107 million to help the industry end the trade by May 1, 2028.

It’s a win for animal welfare groups that have lobbied for the ban, but farmers have broadly opposed the policy and say it is a legitimate industry that should be allowed to continue. 

3.5 Defence

The federal government will spend an extra $5.7 billion on defence over the next four years, and a projected $50.3 billion more in the decade to come as it continues reshaping Australia’s armed forces.

The government predicts it will spend a total $330 billion on defence in the next decade, growing Australia’s navy, preparing the army for shoreline warfare, enhancing long-range strike capabilities and strengthening the nation’s northern bases.


Should you have any questions specific to your situation, contact us at or contact  Accolade Accounting on (08) 6263 4466 or (03)  9524 3145 to get further advice.