From Cost of Living Relief to Renewable Energy Investment:
Can Australia Stay Relevant with a Future Made in Australia?
The 2024-25 Budget is one that matters for business. Framed publicly as addressing Cost-of-Living pressures while managing inflationary risk, the Budget contains a major focus on business investment through its Future Made in Australia policy – which is of critical importance to Australia’s economy and energy transition.
Below, we explain the Future Made in Australia policy in more detail – addressing its strategic aims and key considerations for businesses engaging with it. However, first, some headlines from this year’s budget and the economic context in which it comes:
- $9.3bn surplus
- Spending restrained to mitigate risk of stoking inflation and higher interest rates
- Key initiatives are Cost of Living Relief for families, Future Made in Australia incentives for transition economy and extended instant asset write off for small businesses
- Streamlined investment approvals will aid most foreign investors, but proposed tax changes may impact investor decision-making
- Future budgets will face significant structural challenges, including large ongoing funding commitments for Defence and NDIS programs
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Federal Budget Insights
Insight
Federal Budget May 2024-25: Green Energy & Advanced Manufacturing
The Government has provided some details regarding its recently announced Future Made in Australia package.
14 May 2024
Insight
Federal Budget May 2024-25: Environment & Climate change
To combat climate change and facilitate Australia’s transition to a low-carbon economy, the Government has introduced various measures to the Climate Change, Energy, the Environment, and Water portfolio in the Budget.
14 May 2024
Insight
Federal Budget May 2024-25: The digital economy
The Government has adopted a significant focus in this Budget on its ‘Future Made in Australia’ strategy to champion growth and investment in Australia’s digital capabilities.
14 May 2024
Insight
Federal Budget May 2024-25: Defence
The Albanese Government is making the biggest commitment to increasing Defence funding over the forward estimates in decades. With a record amount spent on the Australian defence industry, the government aims to strengthen Australia’s sovereign defence industry and create jobs.
14 May 2024
Insight
Federal Budget May 2024-25: International
The Government has announced dramatic changes to the capital gains tax (CGT) regime for non-residents. The following amendments are proposed to commence on or after 1 July 2025 (subject to further consultation):
14 May 2024
Insight
Federal Budget May 2024-25: Funds & Superannuation
The Federal Government has announced a significant $1.1 billion in funding over five years to enhance the Paid Parental Leave (PPL) Scheme under which eligible parents will receive the Superannuation Guarantee of 12% on their PPL payments as a contribution to their superannuation fund
14 May 2024
Insight
Federal Budget May 2024-25: Infrastructure
The Government has made a number of announcements relating to infrastructure funding. The key commitments in each jurisdiction are as follows:
14 May 2024
Insight
Federal Budget May 2024-25: Jobs and education
The Budget is heavily focused toward funding initiatives for Jobs and Education. Key initiatives include the ‘Future Made in Australia’ program, enhancement to the government-funded paid parental leave scheme, employment services reform and reforms targeted towards Closing the Gap for Indigenous Australians.
14 May 2024
Insight
Federal Budget May 2024-25: Health & aged care
This Budget prioritises funding for health and aged care, with a focus on ensuring, in the words of the Treasurer, a “stronger Medicare in every community” and a “dignified retirement for older Australians”.
14 May 2024
Insight
Federal Budget May 2024-25: Family
A central focus of the Government’s Budget was on easing cost-of-living pressures for middle Australia.
14 May 2024
Insight
Federal Budget May 2024-25: Small business
The Budget puts forward a number of measures aimed at easing cost pressures, boosting productivity, and enhancing confidence in the small business sector.
14 May 2024
Insight
Federal Budget May 2024-25: Tax compliance
The Government has included measures to strengthen the fairness and sustainability of the tax system, which is expected to improve the budget by $3.1 billion over five years.
14 May 2024
Insight
Federal Budget May 2024-25: Personal tax
Directed at easing cost of living pressures, the 2024-25 Budget has introduced tax cuts for all 13.6 million Australian taxpayers from 1 July 2024. In addition, the Government has also announced an increase to the Medicare levy low-income thresholds for singles, families, seniors and pensioners from 1 July 2023, and extended the ATO Personal Income Tax Compliance Program.
14 May 2024
Insight
Federal Budget May 2024-25: Corporate Tax
The Government’s focus in the corporate taxation sphere in this budget has been on the Future Made in Australia tax incentives (see Green Energy section below and the targeted international tax changes (see International section below). The majority of the changes in this year’s budget relate to minor amendments of existing measures and no new initiatives are announced.
14 May 2024
