Taxation Updates

Medicare Levy Low-Income Thresholds

Starting from 1 July 2023, the Medicare levy low-income thresholds will be increased to provide more relief to low-income earners:

  • Singles: The threshold will rise from $24,276 to $26,000.
  • Families: The threshold will increase from $40,939 to $43,846.
  • Single Seniors and Pensioners: The threshold will be raised from $38,365 to $41,089.
  • Family Threshold for Seniors and Pensioners: The threshold will increase from $53,406 to $57,198.
  • Dependent Child/Student: The family income threshold will increase by $4,027 for each dependent child, up from $3,760.

Personal Income Tax Cuts

As previously legislated, from 1 July 2024, the following personal tax rates will apply:

  • The 19% tax rate will be reduced to 16%.
  • The 32.5% tax rate will be reduced to 30%.
  • The income threshold for the 37% tax rate will increase from $120,000 to $135,000.
  • The income threshold for the 45% tax rate will increase from $180,000 to $190,000.

Strengthening the Foreign Resident Capital Gains Tax Regime

From 1 July 2025, amendments will be made to the foreign resident capital gains tax (CGT) regime to:

  • Clarify and broaden the types of assets subject to CGT for foreign residents.
  • Amend the principal asset test to a 365-day testing period.
  • Require foreign residents disposing of shares and other membership interests exceeding $20 million to notify the ATO before executing the transaction.

The government will consult on the implementation details of these measures.

Piggy Bank with cash

Social Security Enhancements

Improving Aged Care Support

Additional support for the aged care sector includes:

  • Release of an additional 24,100 home care packages in 2024-25.
  • Measures to attract and retain aged care workers.

JobSeeker Payment – Partial Capacity to Work

From 20 September 2024, eligibility for the higher rate of JobSeeker payment will be extended to single recipients with a partial capacity to work of zero to 14 hours per week. Currently, this higher rate is available to single recipients with dependent children and those aged 55 and over who have been on payment for nine continuous months or more.

Carer Payment – Increased Flexibility

From 20 March 2025, changes to the Carer Payment include:

  • The 25-hour weekly participation limit will change to 100 hours over four weeks.
  • Participation limit will exclude study, volunteering activities, and travel time.
  • Payments will be suspended for up to six months instead of being canceled if the participation limit or allowable temporary cessation of care days are exceeded.

Commonwealth Government-Funded Paid Parental Leave (PPL)

From 1 July 2025, the government will pay superannuation on Commonwealth government-funded PPL. Eligible parents will receive an additional payment based on the Superannuation Guarantee (12% of their PPL payments) as a contribution to their superannuation fund.

Commonwealth Rent Assistance

The maximum rates for Commonwealth Rent Assistance will increase by 10% from 20 September 2024.

Freeze on Social Security Deeming Rates

The government will freeze social security deeming rates for age pensioners and others on income support payments at their current levels for a further 12 months until 30 June 2025.

Elderly person receiving extra government payments

Job Creation, Support, and Other Initiatives

Commonwealth Prac Payment

From 1 July 2025, a new Commonwealth Prac Payment of $319.5 per week will be established for tertiary students undertaking supervised mandatory placements in nursing, teaching, or social work studies.

Energy Bill Relief Fund

The Energy Bill Relief Fund will be extended and expanded to provide:

  • A $300 rebate to all Australian households on their 2024-25 energy bills.
  • A $325 rebate to eligible small businesses on their 2024-25 energy bills.

Higher Education Loan Program (HELP)

Effective from 1 June 2023, the indexation of HELP and other student loans will be limited to the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI), subject to the passage of legislation.


The 2024-25 Federal Budget introduces a range of measures designed to support low-income earners, enhance social security, and promote job creation and support. These changes reflect the government’s commitment to providing financial relief and supporting the economic well-being of Australians.

Contruction work of new buildings for work

Find the Federal Budget 2024-25 here.

If you have any questions or need further assistance, please contact us today. You can also browse our other blog posts for topics that may be of interest to you.

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