2024-25 Federal Budget: Essential Takeaways for Small Business Success

The Federal Budget 2024-25 has introduced several key initiatives aimed at alleviating financial pressures and promoting economic resilience. Here’s a detailed overview tailored for small business owners, highlighting the most relevant budget measures and what they mean for you.

Inflation and Economic Outlook

The Treasurer has projected that inflation will decline by 0.75% due to budget initiatives such as energy relief for households, increased Commonwealth Rent Assistance, and a freeze on Pharmaceutical Benefits Scheme (PBS) co-payments. This optimistic forecast suggests a potential easing of cost-of-living pressures.

Budget Impact Highlights

  1. Surplus and Deficit:
    • The 2023-24 surplus has increased to $9.3 billion.
    • A deficit of $28.3 billion is expected in 2024-25, primarily due to Stage 3 tax cuts.
  2. Targeted Investments:
    • The Government’s Future Made in Australia Framework aims to stimulate private investment in net-zero transformation and domestic economic resilience.

Small Business Initiatives

Energy Relief:

  • $325 Energy Bill Relief: Small businesses will receive a $325 rebate on their energy bills for 2024-25. This will be applied automatically as quarterly credits.

Instant Asset Write-Off:

  • $20,000 Instant Asset Write-Off: Extended until 30 June 2025, allowing small businesses to immediately deduct the full cost of eligible depreciating assets costing less than $20,000.
Key Measure Details
Energy Bill Relief $325 rebate for small businesses
Instant Asset Write-Off $20,000 threshold extended until June 2025

Tax and Financial Measures

Stage 3 Tax Cuts:

  • Tax Relief: Permanent tax cuts from 1 July 2024, particularly benefiting individuals with taxable incomes below $150,000.

HELP Debt Indexation:

  • Reduced Indexation: HELP debts will be indexed at the lower of CPI or Wage Price Index (WPI) from 1 June 2023, easing financial burdens for over 3 million Australians.
Tax Cuts From 1 July 2024
Individuals earning below $150,000 Beneficiaries of the cuts

Business Investments

Future Made in Australia Initiative:

  • Renewable Energy Superpower: $22.7 billion initiative to attract private investment in priority industries such as renewable hydrogen and green metals.
Initiative Investment
Renewable Hydrogen and Green Metals $22.7 billion over ten years

Support for Families and Individuals

Energy Relief:

  • $300 for Households: Energy bill credits of $300 for households.

Rent Assistance:

  • Increased Assistance: Commonwealth rent assistance maximum rates increased by 10% from 20 September 2024.

HELP Debt Relief:

  • Capping Indexation: Reducing HELP debt accumulation through capped indexation rates.
Support Measure Details
Household Energy Relief $300 credit
Rent Assistance 10% increase

Compliance and Regulatory Measures

Funding for ATO:

  • Counter Fraud Strategy: $187 million over four years to strengthen fraud detection and prevention within tax and superannuation systems.

Anti-Money Laundering:

  • Reforms: $168 million over four years to enhance anti-money laundering and counter-terrorism financing laws.
Regulatory Measures Investment
ATO Fraud Prevention $187 million
AML/CTF Reforms $168 million

Superannuation Changes

Superannuation on Paid Parental Leave:

  • Effective from 1 July 2025: Superannuation will be paid on government-funded Paid Parental Leave.
Superannuation Measure Effective Date
Paid Parental Leave Super 1 July 2025


The 2024-25 Federal Budget introduces several measures aimed at reducing cost pressures and fostering investment in priority industries. For small business owners, key highlights include extended instant asset write-offs and energy bill relief. Understanding these changes can help you better navigate the economic landscape and take advantage of the support available.

If you have any questions or need further assistance, the team at Business Edge Advisors is here to help you make the most of these budget measures and ensure your business thrives.

For more detailed insights and personalized advice, feel free to contact us.