The 2024-2025 Federal Budget has sparked discussions across the nation, with its primary aims being to curb inflation, address the cost of living, and maintain a budget surplus. Here’s a breakdown of key highlights and their implications:
The budget appears to be more catered toward individuals rather than businesses. While this helps address cost-of-living concerns, small businesses, particularly those recovering from the pandemic, face continued pressure. Overdue debts and penalties enforced by the ATO remain a significant challenge for many business owners.
Taxation Updates
Housing Crisis
The government has pledged to build 1.2 million homes over five years under the National Housing Accord. However, experts and industry professionals question the feasibility of this goal due to low approval rates, rising material costs, and unprofitable development conditions. Builders face high taxes and expenses, making large-scale construction challenging.
Cost of Living Measures
Skilled Migration and Workforce Support
The government’s migration program will prioritize skilled labour, allocating 132,000 of the 185,000 spots to address labour shortages in critical industries like construction and accounting.
Support for Women
Permanent funding of up to $5,000 for women fleeing domestic violence reflects a commitment to social welfare and safety.
Conclusion
While the 2024-2025 Federal Budget addresses critical areas like inflation and cost of living, it falls short in providing substantial support for small businesses and the construction industry. Long-term success will depend on effective implementation and a balanced approach to fostering economic growth. What do you think of this year’s federal budget? Share your thoughts below!