The Australian Federal Budget for the fiscal year 2024–25 was announced on 14 May 2024. This budget outlines the government’s economic forecast indicators and key tax and economic measures. Here are some key facts and figures from the budget that you should know.
Economic Forecast Indicators
Interestingly, the budget projects a surplus of $9.3 billion in 2023-24. However, it anticipates deficits of $28.3 billion in 2024-25 and $42.8 billion in 2025-26. This represents a significant turnaround from a deficit of $13.9 billion in 2023-24.
The budget also forecasts a Real GDP Growth of 1.75% and an Employment Growth of 0.75%. Furthermore, it predicts an Unemployment rate of 4.5% and an Inflation rate of 3.6%.
Key Measures
Easing Cost-of-Living Pressures
To ease cost-of-living pressures and help Australians keep more of what they earn, the government has committed $1.9 billion over five years to increase maximum rates of Commonwealth Rent Assistance by a further 10 per cent.
Building More Homes for Australians
In an effort to build more homes for Australians, the budget allocates an additional $6.2 billion to specific housing initiatives. This takes the government’s total new investment since 2022 to $32 billion, including $101 million to upgrade regional airports, remote airstrips and other connecting infrastructure.
Investing in a Future Made in Australia
The government has launched the $22.7 billion Future Made in Australia package to stimulate private sector investment and create new jobs and opportunities. This includes unlocking more than $65 billion of investment in renewable capacity and investing $27.7 million to integrate batteries and solar into the grid.
Moreover, the budget commits $1.5 billion to manufacturing clean energy technologies, including the Solar Sunshot and Battery Breakthrough Initiative. It also includes $466.4 million to build the world’s first commercial-scale quantum computer.
Supporting Small Businesses
Reaffirming its commitment to small businesses, the government has earmarked $641.4 million in targeted support.
What are the implications of these measures for everyday Australians?
The measures outlined in the 2024–25 Australian Federal Budget have several implications for everyday Australians:
- Easing Cost-of-Living Pressures: The increase in Commonwealth Rent Assistance can help lower-income Australians afford housing. This measure could potentially reduce financial stress for those struggling with rent payments.
- Building More Homes for Australians: The investment in housing initiatives aims to increase the supply of homes, which could help to moderate house prices and make housing more affordable for Australians.
- Investing in a Future Made in Australia: The Future Made in Australia package is expected to stimulate job creation and economic growth. This could lead to more job opportunities for Australians and boost the economy.
- Supporting Small Businesses: The targeted support for small businesses could help them grow and create more jobs. This could benefit Australians who are small business owners or those who are employed by small businesses.
- Investing in Clean Energy Technologies: The investment in clean energy technologies could lead to a reduction in energy costs for Australians in the long run. It could also create jobs in the renewable energy sector.
- Building the World’s First Commercial-Scale Quantum Computer: This could put Australia at the forefront of the global technology industry, potentially creating high-tech jobs and boosting the economy.
Overall, these measures are designed to support economic growth, create jobs, and ease cost-of-living pressures, which could improve the standard of living for everyday Australians.
In conclusion, the 2024–25 Australian Federal Budget focuses on easing cost-of-living pressures, building more homes, investing in a future made in Australia, and supporting small businesses. It provides a comprehensive plan for the nation’s economic recovery and growth.
If you have any questions about the 2024–25 Australian Federal Budget and how it might affect your personal financial situation, don’t hesitate to reach out. Our team of professional financial advisers are here to help. Contact us today to schedule a consultation and let us guide you through the complexities of the financial landscape. Your financial future starts here.