INFORMATION FOR INDIVIDUALS

In a positive move towards attempting to alleviate the superannuation gender gap, the Government will ensure that the superannuation guarantee of 12% will be paid as a contribution to superannuation funds for parents accessing Government-funded Paid Parental Leave. This will commence for births or adoptions after 1 July 2025 and is expected to cost $1.1bnover the first four years and $0.6bn a year ongoing.

In a positive move towards alleviating the superannuation gender gap, the Government will ensure that the superannuation guarantee of 12% will be paid as a contribution to superannuation funds for parents accessing Government-funded Paid Parental Leave.

The proposal comes as no surprise, given the conversation concerning this measure in conjunction with the much less popular Division 296 proposal on superannuation balances over $3m. The Greens made it clear that this change was required to receive support for the Division 296 measure, and the Government did not disappoint.

The progress in reducing the gender gap has been disappointingly slow, with women's average balance amounting to only 71% of men's. This represents a marginal closure of just over 6% over the past decade. Effective from 1 July 2025, this measure marks a crucial initial step in addressing the significant career and superannuation discrepancies experienced by parents.

CASE STUDY

 In August 2026, Lisa gives birth to her first child. To fully embrace this special time, she has decided to take six months off from work and is fortunate to qualify for the Commonwealth government-funded Paid Parental Leave. During this period, the Government will make 12% superannuation guarantee contributions to Lisa’s superannuation fund. This support will help Lisa minimise any potential loss in her superannuation savings that she might have faced in 2024. 

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Visas

The Government announced several changes relating to immigration visas:

• As part of the Australia-India Migration and Mobility Partnership Arrangement (MMOA) 3,000 visas will be issued from 1 November 2024 under the “Mobility Arrangements for Talented Early-professionals Schemes” (MATES). In addition, Business Visitor visas for Indian nationals will be extended from three years to five years, 
• A pre-application process for Work and Holiday Visas will be introduced for people from China, Vietnam, and India. 
• The Permanent Migration Program will allocate 70% of 185,000 places to the Skilled worker stream.

The focus for immigration is clearly aimed at skilled workers, to assist in growing the economy. 

Working for Women: Strategy for Gender Equity 

The Government has prepared a detailed document, Women’s Budget Statement, to address Gender-based violence and economic equality and security for women. It highlights the level of concern raised by the Australian community and the need to take corrective action to change behaviours and attitudes. However, it provides little financial support in the work environment.

• The Government will provide financial assistance for students for the duration of a placement, which forms part of their higher education studies in nursing, midwifery, teaching and social work. 
• The Government is paying employer superannuation on Government-funded Paid Parental leave. 
• Launching the Building Women’s Careers program, to boost female participation in construction, clean energy and advanced manufacturing industries, and technology and digital sectors
  

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The anticipated tax cuts that come into effect on 1 July 2024 attempt to mute bracket creep but could be inflationary. 

Taxpayers earning more than $146,000 will receive reduced tax cuts under the Revised Stage 3 measure compared to the previously legislated Stage 3 measure.

Revised stage 3 tax cut changes announced on 25 January 2024, relative to 2023-24 tax settings, The revised stage 3 tax cuts take effect from July 1, 2024.

These changes are of welcome benefit for most working families, in particular, for those struggling with high mortgage rates. The income tax saving for a family with a single income earner earning $100,000 is $2,179 per annum.

Cost of living subsidies include a freeze on price escalation for PBS medication for two years, but a five-year freeze applies for concession cardholders and pensioners. This may directly reduce measured inflation and help the more vulnerable.

Students will see relief on HELP loan indexation as the lower of CPI or Wage Price Index will now be applied. The change should reduce the annual indexation of a $25,000 student loan by approximately $1,100 and these savings compound over time.

The maximum Commonwealth Rent Assistance payment will increase by 10% from September this year (increase of between $12.50 to $18.80 per fortnight depending on rental circumstance), assisting one million renters with the increased payment.

Age Pensioners gain from several budget measures, but in addition will see deeming rates frozen, reducing the likelihood of interest earnings reducing eligible social security payments. Pensioners should be looking to maximise interest returns on cash and deposits.

An additional 24,100 Home Care Packages will reduce pressure on the aged care system, albeit at the margin.

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