Federal Budget 2024-25

Two colleages reviewing work

What you need to know

The Labor Government delivered its second full-year budget on Tuesday 14 May 2024. Key spending measures proposed include a $7.8 billion cost of living package, a focus on building more homes for Australians and investment in a Future Made in Australia - a plan to encourage new industries in the net zero transformation.

Two key announcements affecting super include the Government’s plan to pay super on paid parental leave and further help for people attempting to recover unpaid super owed by employers in liquidation or bankruptcy.

Read on for a snapshot of the proposed changes, including:

  • $1.1 billion payment of super on Government-paid parental leave from 1 July 2025
  • New measures to assist recovery of unpaid super from 1 July 2024
  • Building 1.2 million more homes for Australians over 5 years
  • $216 million over four years from 2024–25 for Australia’s arts, entertainment and cultural sector
  • Cost of living relief, including tax cuts, a $300 non-means tested energy bill discount for households and $325 for small businesses, and
  • Freezing social security deeming rates until 30 June 2025.

Keep in mind that all changes announced in the Federal Budget are what the Government plans to do. No changes are law (unless otherwise indicated) until passed by Parliament.

The full budget breakdown

If you’re working

  • Super on Government-paid parental leave (PPL)

    In March this year the Government committed to pay super on its PPL from 1 July 2025. The Government plans to spend $1.1 billion on the super payments, benefitting 180,000 families per year.

    While taking time out of paid work to care for children is a normal part of working life for parents, women are more likely to take a break from paid work and as a result their future retirement income is impacted. Women retire, on average, with about 25% less super than men.*

    Media Super welcomes the Government's plan. CEO Kristian Fok says it will assist in closing the super pay gap and help members achieve a more dignified retirement.

    “We support action in addressing policy challenges where the system still must be strengthened to address women retiring with substantially less super than men and too often retiring with low or non-existent balances.”

    The Government estimates:

    • If a woman earning $70,000 per year takes 22 weeks of Government PPL in July 2026
    • She'll receive a $2,500 super contribution as a result of the proposed changes, and
    • She'll retire with a super balance that’s around $4,250 higher.

    If the proposal becomes law, the 12% super payments will be made annually from
    1 July 2026 to eligible parents of babies born or adopted on or after 1 July 2025.

  • Support for members with unpaid super

    The Government plans to extend the Fair Entitlements Guarantee Recovery Program to pursue unpaid super owed by employers in liquidation or bankruptcy from 1 July 2024.

    Unpaid super is a big issue for our members, and we’re always advocating for stronger policies to protect you and your super. About one-in-four workers across Australia currently miss out on about $5 billion in super each year. This averages out at $1,700 for each worker whose super isn’t paid. For those affected, this can mean more than $60,000 less in super savings by retirement.

    If your super isn’t paid, this doesn’t just impact your account balance, it also impacts your investment returns over time. It could even mean your insurance cover is cancelled, leaving you in a vulnerable position.

    We’re here to help you. With the support of our sponsoring organisations, we recovered $126.4 million of members’ unpaid super during the 2022-23 financial year.

    If you believe your super hasn’t been paid, contact your local Coordinator.

  • Cost of living measures

    Beyond super, the Budget included proposals to help people with the rising cost of living.

    The Government has legislated tax cuts for all 13.6 million Australian taxpayers from
    1 July 2024. On average, taxpayers will receive a tax cut of $1,888 or $36 per week in 2024–25.§

    The Government has proposed a further $7.8 billion for cost of living relief. If these changes go ahead, members may benefit from:

    • Energy bill relief: from 1 July 2024 more than ten million households will receive a $300 discount on their energy bills
    • Support for renters: from 20 September 2024 all Commonwealth Rent Assistance maximum rates will increase by 10%
    • Cheaper medicines: the cost of Pharmaceutical Benefits Scheme-listed medications will be frozen until 2026 for everyone with a Medicare card. For concession card holders, prices will be frozen for five years
    • Debt relief for students: backdated to 1 June 2023, the indexation rate for HELP and other student loans will be capped to be the lower of either the Consumer Price Index or the Wage Price Index. This will wipe $3 billion of student debt for 3 million Australians.
  • Building more homes for Australians

    To address housing shortages and housing affordability, the Government aims to build more homes in every state and territory - 1.2 million new homes over 5 years from July 2024.

    Funding more social and affordable housing:

    • The first $500 million minimum annual disbursement from the $10 billion Housing Australia Future Fund (HAFF) will be made in 2024–25
    • Additional concessional financing of up to $1.9 billion to community housing providers to support delivery of dwellings under the HAFF and the National Housing Accord
    • Expand the Affordable Housing Bond Aggregator program by increasing Housing Australia’s liability cap by $2.5 billion to $10 billion and lend an additional $3 billion to Housing Australia to support ongoing delivery of the program.

    Supporting more homes:

    • The Government proposes a further $1 billion to states and territories to deliver new housing – connecting essential services such as water, power, sewerage and roads
    • This investment expands on the $500 million already committed through the Housing Support Program, enabling infrastructure to unlock more home construction.
  • Asset write-off scheme

    The Government plans to extend the instant asset write-off scheme for another year. If you have a small business with an annual turnover below $10 million, the scheme allows you to claim a tax deduction on new equipment (such as a new car, software, tools, or even a coffee machine) up to the value of $20,000.

    You could potentially claim for multiple assets, but any asset/s need to be used/installed and ready for use by 30 June 2025.

If you’re nearing or are in retirement

  • Freezing social security deeming rates

    Deeming rates are percentages set by the Australian Government and used by Centrelink to assume how much you’ll earn over the next twelve months from things like super and other financial assets.

    The Government plans to freeze social security deeming rates at their current levels for a further 12 months until 30 June 2025, to support 450,000 Age Pensioners and other income support recipients who rely on income from deemed financial assets. This will allow retirees to benefit from increases in interest rates and returns without reductions in their age pension.

  • Improving aged care

    The Government plans to set aside $2.2 billion to address the recommendations of the royal commission into the aged care sector, including:

    • Home care packages: if you’re older and want to stay in your own home longer, the Budget plans to fund an additional 24,100 home care packages in 2024–25 and cut average wait times
    • Improving aged care quality: the Budget proposes $110 million to support increased supervision of aged care quality and $1.2 billion to roll out improved digital systems
    • Higher wages for aged care workers: a proposed increase in award wages to attract staff and ensure high quality care.
  • Cost of living measures

    Beyond super, the Budget included proposals to help people with the rising cost of living:

    • Energy bill relief: from 1 July 2024 more than ten million households will receive a $300 discount on their energy bills
    • Support for renters: from 20 September 2024 all Commonwealth Rent Assistance maximum rates will increase by 10%
    • Cheaper medicines: the cost of Pharmaceutical Benefits Scheme-listed medications will be frozen for everyone with a Medicare card for two years. For concession card holders and pensioners, prices will be frozen for five years.

If you’re an employer

  • Investing in creative industries

    The Government plans to provide $216 million over four years from 2024–25 (and $59 million per year ongoing) to further support Australia’s arts, entertainment and cultural sector under the National Cultural Policy – Revive. This includes:

    • $115.2 million to Australia’s eight national arts training organisations to ensure their continued operation
    • $14.5 million to support the production of Australian children’s screen content
    • $9.3 million to expand and enhance the National Film and Sound Archive’s capacity to store highly flammable nitrate-based cultural heritage material belonging to our national collecting institutions. These historically significant films and photographic negatives are currently at risk of being lost
    • $8.6 million for the Revive Live program to provide essential support to live music venues and festivals showcasing Australian bands and artists
    • $5.2 million to expand and develop the Canberra and Darwin symphony orchestras.
  • Support for employers - payday super

    The Government previously announced that from 1 July 2026, employers will be required to pay their employees’ super on the same day that they pay wages. The Budget has included additional funding to support workplaces to implement policy changes, including payday super.

  • SuperStream Gateway Network Governance Body

    The Government is planning additional resourcing to support the SuperStream Gateway Network Governance Body, an industry-owned not for profit organisation, to manage the integrity of the Superannuation Transaction Network, which allows Gateway Members to transmit contribution data between employers and superannuation funds, with funding provided through the Australian Taxation Office.

  • Extending the instant asset write-off scheme

    The Government plans to support small business cash flow by extending the instant asset write-off scheme for 12 months. If you have a small business with an annual turnover below $10 million, the scheme allows you to claim a tax deduction on new equipment (such as a new car, software, tools or even a coffee machine) up to the value of $20,000.

    You could potentially claim for multiple assets, but any asset/s need to be used/installed and ready for use by 30 June 2025.

  • Easing cost pressures and reducing the administrative burden

    The Government plans to provide around one million eligible small businesses with energy relief. This means you may receive a $325 discount on your energy bills.

    The Government plans to reduce the administrative burden for small business by abolishing 457 nuisance tariffs and delivering $10 million to provide additional support for small business employers administering the government paid parental leave scheme.

  • Supporting confidence and resilience in the small business sector

    The Budget outlines a proposed investment of $10.8 million to deliver tailored, free and confidential financial and mental wellbeing supports for small business owners. To help small businesses understand and comply with recent workplace relations changes, the Government plans to provide $20.5 million to the Fair Work Ombudsman.

Reminder of other changes to member’s super starting 1 July 2024

  • The super contributions made by your employer will increase from the current rate of 11% to 11.5%
  • Increase in concessional contribution cap to $30,000 a year (up from $27,500) and an increase in the non-concessional contribution cap to $120,000 a year (up from $110,000).

Join a webinar

Join us for a 30-minute webinar where we’ll cover the 2024 Federal Budget and other changes to super from 1 July 2024.

* Paying super on Government Paid Parental Leave to enhance economic security and gender equality, Australian Government.
Budget 2024-25: Broadening opportunity and advancing equality, Australian Government.
Budget 2024-25: Cost of living help & a future made in Australia, Australian Government.
§ Addressing unpaid super will give economic security for all, Super Members Council.
# Budget 2024-25: Easing cost-of-living pressures, Australian Government.

This update is intended to keep readers informed about current developments in superannuation and is not intended to be used as a substitute for professional advice. It doesn’t account for your specific needs. Please consider your financial position, objectives and requirements before making financial decisions. Read the relevant Product Disclosure Statement (PDS) and Target Market Determination to decide what’s right for you. Contact us or visit mediasuper.com.au for a copy.

While all care has been taken to ensure that the information in this update is correct, Media Super expressly disclaims all liability and responsibility to any person who relies, or partially relies, on the content, any error or misprint, or for any person who acts on this information. This article is based on information that is current as at 15 May 2024.

More information

For full details head to the 2024–25 Federal Budget website.