2023-24 Federal Budget wrap up

Superannuation

Increasing tax on earnings on balances over $3 million

^{1 July 2025}

The Government is reducing super tax concessions for people whose total balance exceeds $3 million, bringing the headline tax rate to 30% (up from 15%). The higher tax rate is only payable on earnings corresponding to the proportion of a person’s super that is greater than $3 million.

Introducing payday super

^{1 July 2026}

Employers will need to make super contributions on the same day as they pay their employees’ salary and wages. Currently they only need to contribute to super once a quarter.

The Government estimates this would increase the retirement savings of a 25-year-old median wage earner by $6,000.

This will particularly benefit lower paid workers and those in casual and insecure work, many of whom are women.

Small Business

$20,000 instant asset write-off

^{1 July 2023}

Tax breaks for small business to write-off assets on multiple assets. 

The Government will improve cash flow for small businesses by temporarily increasing the instant asset write-off threshold to $20,000 for businesses with an aggregated annual turnover of less than $10 million.

Aged care

Reforming aged care

^{2022-23 and over the next 5 years}

The Government is providing extra funding to:

• increase the pay of many aged care workers by 15%;
• provide an extra 9,500 Home Care packages;
  
• continue COVID-19 measures;
  
• strengthen regulation, and;
  
• postpone the new ‘Support at home Program’ and extend grant arrangements for the ‘Commonwealth Home support Programme’ for a further 12 months.
  

Housing affordability

Expanding the Home Guarantee Scheme

^{1 July 2023}

Siblings, friends and other family members will be able to use the Government’s first home buyer programs together to boost participation . The expanded eligibility will allow any 2 eligible people to be joint applicants for a guarantee.

This includes the First Home Guarantee, the Regional First Home Guarantee and the Family Home Guarantee.

The Home Guarantee Scheme will also be extended to people who have not owned a house in the past 10 years.

Further information on the Home Guarantee Scheme is available from the NHFIC.

Tax

Increasing Medicare Levy low-income thresholds

^{1 July 2022}

Low-income taxpayers will generally continue to be exempt.

• Singles will be increased from $23,365 to $24,276
• Families will be increased from $39,402 to $40,939
  
• Single seniors and pensioners will be increased from $36,925 to $38,365, and
  
• Families (seniors and pensioners) will be increased from $51,401 to $53,406.
  

For each dependent child or student, the family income thresholds increase by a further $3,760.

No changes to incoming tax rates

^{1 July 2024}

^{*Excluding 2 per cent Medicare Levy}

Social security and families

Reducing energy bills

^{Starting 2023-24 for two years}

Eligible households will receive a rebate of $500 per year and eligible small businesses $650 per year on their power bills.

Reducing health costs

^{Provided over 5 years from 2022-23}

The Government will invest $3.5 billion over five years to triple the bulk billing incentive for GP consultations for children under 16 and Commonwealth concession card holders. This will support 11.6 million eligible Australians to access a doctor with no out-of-pocket costs.

Increasing income support payments

^{Proposed effective date: 20 September 2023}

The Government will increase working age and student payments by $40 per fortnight. So, a single person (under age 60) receiving a typical total rate of Job Seeker Payment (JSP) of $701.90 per fortnight will start to receive $741.90.

Also, JSP recipients aged 55 and over (currently 60 years) who have been on payment for 9 continuous months will receive the higher maximum rate of $761.30 . This reflects the increased difficulties that people in this age range have in securing re-employment.

Increasing help for renters

^{20 September 2023}

The maximum rate of Rent Assistance (RA) will increase by 15%. This means a single person with no dependent children currently receiving the maximum RA payment of $157.20 per fortnight will start to receive $180.80, as well as their income support payment.

Expanding access to Parenting Payment (single)

^{20 September 2023}

Eligible single parents will now receive the Parenting Payment (single) until their youngest child turns 14, up from 8 years old.

This is expected to benefit 57,000 single principal carers, including 52,000 women.

It will make these single parents $176.90 per fortnight better off rather than transferring to the Job Seeker Payment.