Australian Budget 2024-2025: Key Insights and Impact

Running a successful business has its challenges and with the current financially unstable climate that many businesses are facing it is wise to also be aware of any government support that is available to you. Since the release of the 2024-2025 budget, the government has made some financial provisions to support businesses.

Some of them are minor, while others can provide substantial financial relief. Here are three key ones that you should consider

Instant Asset Write-Off

Have you invested in additional assets for your business?

• equipment purchases, acquisition of a vehicle or upgraded office technology, since the end of the financial year 30 June 2024?

• The $20,000 instant asset write-off for small businesses with an annual turnover of less than $10 million has been extended.
• This allows small businesses to immediately deduct eligible assets costing less than $20,000 until 30 June 2025. Talk to your accountant if you qualify.

Energy Bill Relief Fund 2024

The Energy Bill Relief Fund is providing energy rebates to businesses on small customer electricity plans to help cover their electricity bills. Eligible small businesses will receive $325 to help pay their energy bill.

• The Australian Government is providing $3.5 billion to extend and expand the Energy Bill Relief Fund and provide electricity bill rebates to Australian households and eligible small business electricity customers in 2024-25 to ease cost of living pressures.
• This builds on the $1.5 billion available for energy rebates provided by the Commonwealth in 2023-24 under the existing fund.

In most cases, the rebate will be paid in quarterly instalments on your electricity bill throughout 2024-25. If you receive your bill for the first quarter and it doesn’t have a credit on it, you should receive your first quarter credit along with the next quarter’s credit automatically on your next bill.

Skills and Training

• In support of business growth and productivity, do you believe that formal skills level training for your staff would be of value to you and your business?

The National Skills Agreement (the Agreement) is a 5-year joint agreement between the Commonwealth, states and territories to strengthen the vocational education and training (VET) sector that commenced on 1 January 2024.

The Agreement will

• deliver a national VET system that provides high-quality, responsive and accessible education and training to boost productivity
• support Australians to obtain the skills and capabilities they need to obtain well-paid, secure jobs
• ensure Australia has the skilled workforce it needs now and into the future, with TAFE at the heart of the VET sector.

The Agreement provides states and territories with access to additional Commonwealth funds of up to $3.7 billion over 5 years. This takes total Commonwealth investment in state and territory training systems to up to $12.6 billion over 5 years.

• The Agreement also represents a fundamental shift in the way that governments work together with businesses to address shared challenges and capitalise on shared opportunities with the Vocational Education and Training (VET) system.

• A new stewardship model will support governments to work collaboratively and purposefully towards national priorities while preserving flexibility to align local skills supply with demand.

Please review these options and if you require further assistance please access the information below

For further information contact:

The Federal Relations Secretariat
Commonwealth-State Relations Division
The Treasury
Langton Crescent
PARKES ACT 2600

state.payments@treasury.gov.au