Greatest Good May 2024 Regulatory Update

Federal Government budget highlights

The Federal Government handed down the Federal Budget, delivering a second back-to-back budget surplus (for the first time in nearly 20 years). The theme running through the budget was the easing of cost of living pressures and clean energy. There was a continued focus on extending and strengthening the ATO compliance programs, with a greater focus on multinationals, large public and private businesses, high net worth individuals and greater personal income tax compliance.

Business

• small business $20,000 instant asset tax write off - small businesses with an aggregated turnover of less than $10m will continue to be able to immediately deduct the full cost of each eligible asset costing less than $20,000 until 30 June 2025 (although it is noted that the same measure for the 2024 income year has yet to be passed by Parliament)
• assets costing more than $20,000 can continue to be placed into the small business simplified depreciation pool and appreciated 15% for the first income year and 30% each income year thereafter
• the instant asset write-off threshold is expected to reduce to $1,000 from 1 July 2025 unless extended further
• $325 energy rebate will be provided to eligible small businesses on the 2024 – 25 energy bill, although there was no definition of what constitutes an eligible small business
• Stage 3 tax cuts as advertised
• $1b superannuation to be paid on government funded paid parental leave from 1 July 25
• $22.7b industry package offering tax incentives, subsidies, and grants to bolster the economy as it shifts towards a clean energy future. This includes a $1.7b innovation fund that could benefit small businesses and start-ups
• $10.8b over two years to extend the Small Business Debt Helpline and the New Access for Small Business Owners program
• employers taking on apprentices in priority areas will be eligible for an additional $1,000 ($5,000 in total) to help subsidise costs associated with employing an apprentice
• $111.8m over four years from 2024 – 25 (and $12.4m per year ongoing) to support the progression of the government’s workplace relations agenda. Funding includes $20.5m over four years to boost funding for the Office of the Fair Work Ombudsman to support small business employees to comply with recent changes to workplace laws
• $41.7m over four years to support small businesses, including payment time reporting, small business debt helpline, franchise code of conduct, Australian Small Business and Family Enterprise Ombudsman, invoicing
• $39.9m over five years to support the adoption and use of artificial intelligence technology in a safe and responsible manner
• $288m for the Government’s Digital ID scheme, which will reduce the amount of personal information that businesses will need to store
• $10.8m to support the mental and financial well-being of small business owners
• mandatory superannuation contributions will increase from 11% to 11.5% on 1 July 2024, then increase to 12% by 1 July 2025

Community

• The Federal Government announced a $21.9m employment initiative in the budget, which will find job-focused social enterprises and businesses to provide customised paid job placements for jobseekers facing high barriers to employment
• This is part of a $54 m funding package for paid employment pathways, which also includes $32.1m for the Real Jobs, Real Wages program
• $11.3b towards new homes, including $1 m of roads, sewers, energy, water and community infrastructure, a doubling of Commonwealth homelessness funding to $400 m every year (matched by states and territories) and $9.3 b for a five year National Agreement on Social Housing and Homelessness
• $40m support the rollout of additional community Wi-Fi in remote and regional Australia
• $117.2m in funding over four years and $36.9 m per year ongoing to support the ongoing operations of performing arts organisations including the Australian Film Television and Radio School
• commitments to fund salary increases in age care in early childhood education, with an additional $87m allocated from work this initiative to attract more nurses and aged care workers
• $925m package of additional funding to address domestic violence, women’s health and other chronically underfunded issues that impact women
• paid work placement programs to support vulnerable marginalised Australians by connecting them with opportunities in businesses and social enterprises
• $2.4b to be invested over the next five years to create jobs for First Nations people in remote Australian communities
• the new Remote Jobs and Economic Development program aims to create 3,000 jobs in remote regions
• the Building Women’s Careers program will support women entering traditionally male dominated industries, such as construction, clean energy, advanced manufacturing and digital technology

Disclaimer: This does not purport to be comprehensive or to render legal advice. You should not act based on any information contained in this publication without first obtaining specific professional advice. Consult your legal advisor to determine if this applies to you.