2024 Budget winners and losers

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Treasurer Jim Chalmers has officially handed down his third budget since the Labor government came into power and the second which has delivered a surplus - this time forecast to be in the region of $9.3 billion.

In his budget speech, Chalmers was keen to emphasise the need to strike a balance between addressing the cost of living pressures currently being felt by households, while also investing money in areas like housing, healthcare and local manufacturing.

"This is a Budget for the here-and-now and it's a Budget for the decades to come.

federal budget winners 2024

"It's a responsible Budget that helps people under pressure today - and invests in the promise and potential of the more prosperous future we can make together."

So which Australians are likely to benefit from measures in this year's budget and who will miss out? Here are some of the 2024 budget winners and losers.

Winners

Australians with student loan debt

A change to the way that HECS-HELP and other student loans are indexed will see $3 billion worth of student debt removed for around three million Australians, and the likelihood of lower indexation increases in years ahead.

Household energy bills

From July, more than ten million households will begin to receive rebates on their energy bills of up to $300 over the year. The government has also allocated $1.8 million over the next four years to support reforms aimed at making switching energy providers easier and helping consumers avoid being automatically rolled on to more expensive plans.

Low and middle income earners

While all taxpayers will start paying less tax from the 2024-25 financial year, the government's reforms to the stage three tax cuts ensure that those on lower and middle incomes will benefit more than they otherwise would have.

New working parents

Parents of babies that are born or adopted after July 1, 2025, will receive superannuation payments on government-funded paid parental leave. The payments will be made to parents' super funds on an annual basis, starting from July 1, 2026.

Pensioners

Hundreds of thousands of pensioners and income support recipients will see the deeming rate applied to any financial investments they hold frozen until June 30, 2025. Concession card holders will also benefit from a five-year freeze on the maximum Pharmaceutical Benefits Scheme patient co-payment.

Rental support recipients

The government says that around one million renting households will benefit from greater support as a result of a 10% increase to the maximum rate available through Commonwealth Rent Assistance.

Small businesses

Eligible small businesses will receive rebates of $325 on their energy bills over the next year. The government has also announced that it will extent the $20,000 small business instant asset write-off for another 12 months until June 30, 2025.

Student nurses, social workers and teachers

From July 2025, student nurses, midwives, social workers and teachers who undertake mandatory placements as part of their studies will be eligible to receive up to $319.50 per week in government support under a new Commonwealth Prac Payments initiative.

Losers

Future foreign students

The government has committed $1.6 billion over five years to reforming the tertiary education sector and has vowed to work with institutions to increase the supply of student accommodation, but universities have warned that a recent proposal related to international student caps will leave some prospective students in jeopardy and a question mark over funding.

High-income earners

While high income earners will receive tax cuts from next financial year, they won't be as generous as they would have been under the original stage three tax cuts.

Scammers

Though scam losses decline in 2023, scammers remain in the government crosshairs. $67.5 million has been allocated over the next four years to combat scams and online fraud. As part of this, the ACCC will receive $6.3 million next year to continue to promote public awareness around scams.

Student physios and psychologists

Not all students who undertake mandatory placements during their studies will benefit from the government's Commonwealth Prac Payments initiative. Physiotherapy, psychology, medicine, radiography and veterinary science students are among the cohorts who currently miss out.

Tax dodgers

The government says that it will introduce a new penalty for multinational companies who attempt to avoid paying their fair share of tax on royalty payments, while it will also strengthen rules related to capital gains tax for foreign residents to increase compliance.

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Tom Watson is a senior journalist at Money magazine, and one of the hosts of the Friends With Money podcast. He's previously worked as a journalist covering everything from property and consumer banking to financial technology. Tom has a Bachelor of Communication (Journalism) from the University of Technology, Sydney.
Comments
DALE BUCKLAND
May 15, 2024 5.04pm

Tried stay off gov help all my life......looks like self funded retirees are anathema.