May 2024 Federal Budget recap

Treasurer Jim Chalmers’ 2024 Federal Budget produced few surprises for super. It was delivered with cost-of-living challenges front of mind.

There were announcements relating to super on government-funded paid parental leave, as well as cost-of-living and tax relief.

Breaking down the key announcements

Super on government-funded paid parental leave

Following advocacy from UniSuper and industry, the Government has confirmed that parents accessing Commonwealth funded paid parental leave will receive superannuation on top of their payments from 1 July 2025. An additional six weeks of government-funded parental leave will be made available to families by 1 July 2026, taking the total number of available weeks to 26.

Superannuation Guarantee (SG) continues to 12%

The Government confirmed no changes to the legislated increase to the Superannuation Guarantee.

Financial years Minimum SG contribution rate (%)
1 July 2023 to 30 June 2024 11
1 July 2024 to 30 June 2025 11.5
1 July 2025 to 30 June 2026 12

Tax relief for workers

The Government has confirmed the implementation of its tax relief package for taxpayers. The individual income tax rates and thresholds from 1 July 2024 are as follows:

New personal tax rates and thresholds for 2024–25 onwards

2023-24 2024-25
Thresholds ($) Rates (%) Thresholds ($) Rates (%)
0 – 18,200 Tax free 0 – 18,200 Tax free
18,201 – 45,000 19 18,201 – 45,000 16
45,001 – 120,000 32.5 45,001 – 135,000 30
120,001 – 180,000 37 135,001 – 190,000 37
Over 180,000 45 Over 190,000 45

Cost of living relief

The Government will freeze Services Australia deeming rates (assumed rates of income from financial investments) until 30 June 2025, which will see those on the Commonwealth Age Pension and other support payments potentially receiving higher payments. $300 energy bill rebates will be available to Australian households.

Changes to HELP debt repayments will reduce the impact of indexation, and funding will be made available to students undertaking practical placements in certain sectors.

At the time of writing, any Budget announcements are proposals only and shouldn’t be considered final until legislation passes. We’ll continue to keep you updated as developments occur.

We’re here to help

If you have questions about the Federal Budget announcements and their impact on your personal financial situation, you can make an appointment with a financial adviser from UniSuper Advice. You can also check out the official Budget website.

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