The 2024 Federal Budget Summary by the Albanese government aims to provide $300 in energy bill savings to all households, framing it as a rebate. However, this relief is automatic and essentially functions as a cash handout within a broader rebate program costing $3.5 billion over three years. Despite this widespread benefit, there are significant losers in the budget.
Winners:
Low-income renters: Around one million households renting in the private market will receive a 10% increase in maximum rent assistance, benefiting those on welfare payments. This follows last year's 15% increase.
Renewable energy manufacturing businesses: Local solar panel and battery manufacturers will receive subsidies and grants, with $1.5 billion allocated to boost local capability and resilience against supply chain disruptions.
Women: Various initiatives include paying superannuation on government-funded paid parental leave, funding women's health initiatives, and subsidizing longer consultations for gynaecological conditions.
Small businesses: Eligible small businesses will receive a $325 electricity cost rebate, and the instant asset write-off scheme is extended for another year.
Pensioners, cancer patients, and PBS medicine recipients: The cost of medicines on the Pharmaceutical Benefits Scheme (PBS) will be frozen, and new medications will be listed on the PBS.
Motorists: Significant spending on road safety and upgrades, including investments in road infrastructure projects across the country.
Disorganised travellers: A new option for fast-track processing of passports, allowing processing in five business days for an additional fee.
Those with student debt: Indexation of student loans will be capped, providing relief from significant indexation hikes.
Freight rail operators: Funding allocated to upgrade key sections of track to make freight rail delivery more reliable.
Losers:
Renters on average incomes and aspiring homeowners: Little immediate relief or optimism for middle and high-income renters or those aspiring to homeownership.
Tax dodgers: Focus on cracking down on tax avoidance through the Tax Avoidance taskforce, with a particular emphasis on multinational companies and high-wealth individuals.
Fraudsters: Significant investment to combat scams and online fraud, with legislation for mandatory codes for different industries.
NDIS recipients and providers: The surplus partly funded by savings from the National Disability Insurance Scheme (NDIS), with increased spending on fraud detection.
International students: Caps on international student enrolments based on university-built student accommodation, potentially impacting universities' revenues from this cohort.
2024 Federal Budget Summary for Housing
The 2024 budget addresses housing pressures with a significant investment of $6.2 billion in housing initiatives, bringing the total new investment since 2022 to $32 billion. Here's a breakdown of the key measures:
Supporting More Homes:
A further $1 billion is made available to states and territories to deliver new housing, including essential services like water, power, sewerage, and roads. This expands on the previous commitment of $500 million through the Housing Support Program.
More Help for Renters:
A $1.9 billion investment increases the maximum rates of Commonwealth Rent Assistance by an additional 10%, on top of the 15% increase implemented in September 2023. Nearly one million households receiving the maximum rate will benefit.
More Housing for Students:
Regulations will be developed requiring universities to increase their supply of student accommodation to reduce pressure on the private rental market.
More Housing Support for Vulnerable Australians:
A new five-year, $9.3 billion National Agreement on Social Housing and Homelessness will be established with states and territories, doubling the Commonwealth's dedicated funding for homelessness services to $400 million annually.
An increase of $1 billion to the National Housing Infrastructure Facility will better support housing for women, children experiencing domestic violence, and youth.
Other Measures to Support Housing:
$88.8 million will fund 20,000 new fee-free TAFE places relevant to the construction sector.
An additional $1.9 billion in concessional loans will support the delivery of new social and affordable homes.
A $4 billion joint investment with the Northern Territory Government will improve conditions and address overcrowding in remote housing.
Foreign investors will be allowed to purchase established Build to Rent developments with a lower foreign investment fee, provided the property continues as a Build to Rent development.
Investing in Infrastructure:
$9.5 billion over the forward estimates and $16.5 billion over 10 years will be allocated for projects to improve productivity, liveability, and sustainability.
$2 billion will be invested in planning and delivering more efficient regional transport networks in Western Sydney, including roads, rail, and bus infrastructure.
$2.2 billion will enhance rail connectivity between Brisbane and the Sunshine Coast and fund projects like the Coomera Connector Stage 1 and the relocation of Loganlea Station.
$101.9 million will upgrade regional airports and remote airstrips, while $40 million will support the rollout of additional community Wi-Fi in regional and remote Australia.
2024 Federal Budget Summary for Individuals
The 2024-25 Federal Budget emphasized interventionist strategies aimed at boosting growth and easing cost of living pressures. Key measures included tax cuts, cost of living relief, and social security enhancements. Additionally, significant policy announcements were made in various sectors.
Tax Cuts:
Stage 3 tax cuts aimed at saving individuals in the highest tax bracket $4,529 annually, effective from July 1.
Adjustments to tax thresholds benefiting individuals and families.
Extension of the small business instant asset write-off.
Cost of Living Relief:
Energy bill relief packages and rental assistance to ease financial burdens.
Freeze on Pharmaceutical Benefits Scheme co-payments for a year for all individuals and five years for pensioners.
Social Security Enhancements:
Increase in maximum rates of Commonwealth Rent Assistance for renters receiving social security payments.
Frozen deeming rates for financial investments for income-tested social security recipients.
Changes to JobSeeker payment eligibility criteria and Carer Payment participation limits.
Significant Policy Announcements:
Future Made in Australia program focusing on solar panel manufacturing and Quantum computing investments.
Cuts to HECS debts and introduction of a student cap formula.
Health package including funding for new PBS medicines and freeze in the price of PBS medicines.
Infrastructure and Industry Investments:
Funding for housing affordability initiatives and road and rail infrastructure projects.
Investment in critical industries such as renewable energy and digital capabilities under the Future Made in Australia agenda.
Additional spending on defence capabilities and infrastructure.
While the budget is expected to see a small structural deterioration over the next few years, efforts to address structural deficits have been pushed out. The economic outlook remains broadly similar, with GDP growth forecasted around 2% and unemployment peaking around 4.5%. Despite the fiscal deterioration, the budget is not expected to materially impact expectations for growth or inflation.
2024 Federal Budget Summary for Health
The Health sector received significant investment in this year's budget, aimed at improving access to healthcare, supporting aged care reforms, and strengthening mental health services.
Investment in Healthcare:
$882.2 million over five years to reduce unnecessary hospital admissions and support the discharge of older Australians from hospitals, improving transition to aged care or palliative services.
$895.6 million over four years to support the Medicare Benefits Schedule, including permanent items for COVID-19 testing and improvements in primary care.
$631.1 million over four years to support vaccine access, including COVID-19 and shingles vaccines.
$227.0 million over three years to establish 29 Medicare Urgent Care Clinics, reducing pressure on hospital emergency departments.
$121.3 billion over four years to support the Royal Flying Doctor Service and expand Healthdirect Australia's services.
Aged Care Reforms:
$2.2 billion over five years to continue aged care reforms, including support for digital systems, additional Home Care Packages, regulatory capability enhancement, workforce retention, and reducing wait times at the My Aged Care Contact Centre.
Pharmaceutical Benefits Scheme (PBS):
$3.4 billion over five years for new and amended listings on the PBS, covering treatments for various conditions including COVID-19, leukaemia, cystic fibrosis, and ovarian cancer.
$480.2 million over five years to improve access to and reduce costs of medicines, including pausing indexation of PBS co-payments.
Mental Health Services:
$888.1 million over eight years to strengthen mental health services and support suicide prevention, including a free digital mental health service and multidisciplinary services for patients with severe and complex needs.
Disability Support:
$468.7 million over five years to upgrade NDIS IT systems and improve fraud detection and prevention.
$253.6 million over five years to invest in a new disability employment program and enhance employment services for people with disabilities.
Overall, the budget demonstrates a commitment to improving health outcomes, supporting aged care reforms, and enhancing mental health and disability services.
2024 Federal Budget Summary for Small and Medium Businesses
Extension of Instant Asset Write-Off Program:
Small businesses with turnovers under $10 million can immediately deduct eligible assets costing less than $20,000 until June 30, 2025, fostering growth by offering tax deductions for equipment purchases. However, passing legislation is crucial for this measure to take effect.
Energy Rebates for Small Businesses:
Eligible small businesses will receive $325 rebates on electricity bills from July 1, 2024, as part of the Energy Bill Relief Fund. Additionally, regulatory reforms aim to support consumers and ensure better electricity contracts for small businesses.
Free Mental Health Coaching for Small Business Owners:
An additional $10.8 million investment will provide tailored mental and financial support through the NewAccess program. This offers six free coaching sessions, addressing mental health challenges faced by business owners.
Reduction in Import Tariffs:
457 'nuisance tariffs' have been eliminated, simplifying trade and reducing administrative burden for businesses importing goods like toothbrushes, hand tools, and clothing.
Cyber Resilience Funding for Businesses:
$34.5 million will support programs like the Cyber Wardens and Small Business Cyber Resilience Service, educating small businesses on cybersecurity threats. An online tool, Cyber Health Check, will enable self-assessment of cybersecurity maturity.
Assistance for Winning Government Contracts and International Expansion:
Procurement rule updates aim to increase SME participation in government contracts. The Buy Australian Plan will simplify procurement processes. $183.8 million in defence industry grants and $10.9 million for the Go Global Toolkit will aid business expansion abroad.
Grant Funding for Business Innovation:
$392.4 million will be allocated to the Industry Growth Program to support commercialization of innovative ideas and develop Australia's manufacturing capability. The Digital Solutions program will assist small businesses in adopting digital tools.
Support for Education and Training:
$88.8 million will fund 20,000 fee-free TAFE places in construction-related courses. Additional investments will streamline skills assessments for migrants and support social enterprises engaging job seekers.
Improving Franchising Sector Regulations:
$3 million will implement recommendations from the 2023 Schaper Review of the Franchising Code of Conduct, promoting best practices and dispute resolution in the franchising sector to facilitate smoother operations for small businesses.
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