‘Ace in the Hole’ Budget 2023-24
The ‘ace in the hole’ of the 2023-24 Federal Budget was the $4.2bn surplus, the first in 15 years.
The surplus was driven by a surge in the corporate and individual tax take. High commodity prices, inflation, and high employment have all pushed up corporate and individual tax receipts. But the gains can’t be relied on long term. The Budget is expected to deliver a deficit of $13.9 billion in 2023-24 and a $35.1bn deficit in 2024-25.
Social initiatives dominated the Budget:
- Energy bill relief for some households and small businesses
- Encouraging doctors to offer bulk billing by tripling the incentive for children under 16, pensioners and Commonwealth cardholders
- Increases to commonwealth rent assistance
- Increases to JobKeeper and other income support payments
- Expanding access to the single parenting payment
The legislated stage 3 tax cuts legislated to take effect on 1 July 2024 remain in place. Stage 3 radically simplifies the tax brackets by collapsing the 32.5% and 37% rates into a single 30% rate for those earning between $45,001 and $200,000.
If we can assist you to take advantage of any of the Budget measures, or assist with any other queries, please reach out to the HCG Team here.
As always, we’re here if you need us!