Navigating the Federal Budget with your tax agent in Geelong

May 24, 2024

As your trusted tax agent in Geelong, CD&G Accountants is here to guide you through the complexities of the federal budget and what it might mean for you. Whether you’re a business owner or an individual, understanding these updates is crucial for your financial planning.

Small business benefits

$20,000 instant tax write-off extension

The federal government has extended the instant asset write-off scheme, a boon for small businesses with an annual turnover below $10m. This initiative allows you to claim a tax deduction on new equipment purchases—be it a new ute, an oven, or a coffee machine—up to the value of $20,000. It’s an excellent opportunity to upgrade your operations while managing costs effectively.

A focus on education and clean energy skills

The federal government is investing an additional $90 million to cover education costs for 20,000 more individuals in housing and construction programs. Additionally, there are incentives like payments up to $10,000 for those pursuing clean energy skills. This ‘New Energy Apprentice Payment’ is designed to encourage a skilled workforce in sustainable energy sectors, presenting a unique opportunity for tradespeople to enhance their qualifications.

Small business energy bill relief

Eligible small businesses can expect a $325 rebate on their electricity bills. To qualify, your business must be registered on a separately metered business tariff and not exceed a total annual electricity consumption of 40MWh. This relief is aimed at reducing overhead costs, although it’s important to note the specific eligibility criteria, especially for businesses operating from home.

Individual tax relief

Tax cuts across the board

From July 1, every taxpayer will enjoy a cut following changes announced earlier this year. This adjustment means that individuals across all tax brackets will see a reduction in the income tax owed, potentially increasing your disposable income. You can determine the exact benefit using the tax cut calculator provided by the government.

Student debt adjustments

or those with student debts, there’s good news. The federal government is modifying how these debts accrue interest—now linked to the lower of the consumer price index or the wage price index. This change, backdated to last June, ensures that your debt burden grows at a slower rate, making your financial future a bit brighter.

Enhancements to rent assistance and parental leave benefits

The government is increasing the maximum rate of Commonwealth Rent Assistance by 10% from September, a move that will directly benefit individuals struggling with rental payments. Furthermore, from July next year, superannuation will be paid on top of Commonwealth-funded paid parental leave, addressing a critical gap in retirement savings, especially for women.

Nationwide electricity bill support

In a bid to ease household expenses, every Australian household will receive a $300 rebate on their power bills. This relief will be automatically applied, easing some of the financial pressure off your monthly budget.

Your preferred tax agent in Geelong

At CD&G Accountants, we’re here to help you navigate these changes and optimise your financial strategies. For a personalised consultation on how the federal budget impacts you or your business, contact us today.