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Federal Budget 2024-25
INFORMATION FOR
SECTORS
Treasurer Jim Chalmers has presented a cautiously balanced Federal Budget, tasked with boosting growth without exacerbating inflation in a climate of economic uncertainty.
Federal Budget 2024-25
Download your free copy of RSM's Federal Budget 2024-25 report here.
Agribusiness with turnover under $10m per annum will benefit from the certainty of having a $20,000 Instant Asset Write-Off to 30 June 2025.
- Sheep farmers reliant on the live export trade
- Larger agribusiness and farm machinery dealers will be disappointed in a lack of tax incentives to stimulate investment in farm machinery and improvements.
CONTRIBUTOR
The live sheep export industry will be phased out over the next four years, ending on 1 May 2028. The Budget includes $107m over five years to assist in supporting the live sheep export trade through to 2028. Much of this funding will go to sheep producers and the supply chain, particularly in Western Australia, to support transition activities and financial counselling.
With the $20,000 Instant Asset Write-Off extended to 30 June 2025, small business farmers (annual turnover less than $10m) will continue to enjoy immediate deductions for any new or second-hand assets costing less than $20,000 (GST exclusive). This concession had been due to reduce to $1,000.
However, there have been no changes to the generous concessions that allow agribusinesses of all sizes to deduct in full any spending on water infrastructure, fencing and fodder storage assets such as hay sheds.
A key ‘wish-list’ item for the industry was an increase in the thresholds to apply the small business Capital Gains Tax (CGT) concessions. As land prices have risen substantially in recent years, thresholds to access the CGT concessions have remained static, preventing more farming families from accessing them.
CASE STUDY
• Construction of a hay shed - $300,000.
• New water tanks and associated pumps - $50,000.
• Second hand utility vehicle - $12,000.
The ABC Farm Trust will be able to claim the full $370,000 of asset purchases as a deduction in the 2025 financial year.
Had the $20,000 Instant Asset Write-Off not been extended, deductions for the cost of the farm bike and second hand utility vehicle would have been reduced to just of 15% of the purchase price.
To continue reading, download our full Federal Budget report >>
Renters and first home buyers
Aspiring construction workers
CONTRIBUTORS
Housing is a key issue facing many Australians. The system has been unable to keep up with the demand for housing, which now far outweighs supply.
The Government has announced additional measures in the Budget in an attempt to improve housing supply, including the building of 1.2 million new homes by 30 June 2029. 
From a spending perspective, some of the funding will be routed through the states and territories as part of the National Agreement on Social Housing and Homelessness, such as $1bn in funding for “enabling infrastructure” for new housing. Other measures will be provided directly by the Government, including $89m in funding for 20,000 fee-free training places for new construction workers.
Australia’s residential building sector has been unable to construct sufficient new homes to keep up with demand. Labour and material shortages are significant contributors to the supply-side deficiency, whilst high net immigration has caused an increase in demand. This has resulted in decreasing affordability for both renters and buyers alike.
In response to these supply issues, the Government will develop the National Housing and Homelessness Plan, which is a 10-year strategy in which all levels of Government will work together to deliver the short, medium, and long-term actions needed to address these issues. This plan will build on the National Housing Accord announced in the 2023-24 Budget, to deliver 1.2 million new homes in five years commencing 1 July 2024. The Government has announced a reduction in net overseas migration by 110,000 people over the forward estimates from 1 July 2024. This change will no doubt reduce demand for housing.
In addition, the National Cabinet has agreed upon the National Planning Reform Blueprint. This will bring together state and territory planning ministers to progress 17 specific reforms to deliver more homes, including:
- Streamlining development approvals.
- Identifying well-located, development-ready land.
- Identifying how housing can be built faster on sites with development approval, but where development has not commenced.
- Ensuring state, regional and local strategic plans reflect their share of the 1.2 million new homes target.
Housing support is a key aspect of this Budget and builds on the announcements made in the 2023-24 Budget. Whilst some measures will be the direct responsibility of the Government, others are dependent on the states and territories signing the new National Agreement on Social Housing and Homelessness. Measures announced include:
- $1bn for the states and territories to support “enabling infrastructure” for new housing through a new Housing Support Program – Priority Works.
- $423m over five years to support the provision of social housing and homelessness services by the states and territories.
- $89m over three years from 2024-25 to support 20,000 fee-free training places for new construction workers.
The Government has also announced a lower foreign investment fee for foreign investors when purchasing an existing Build-to-Rent property. This is conditional on the property continuing to be operated as a Build-to-Rent development. This measure is in addition to the previously announced Build-to-Rent measure, which halves the managed investment trust withholding rate from 30% to 15% and increases the capital works deduction rate from 2.5% to 4% for newly constructed build-to-rent properties. The Property Council of Australia estimates this could unlock 150,000 apartments over the next 10 years.
The Government also announced $1.9bn in funding for community housing providers to deliver social and affordable housing under the Housing Australia Future Fund and the National Housing Accord.
Whilst these measures are a step in the right direction, there is still considerable work to be done.
The Government has committed to delivering priority road and rail infrastructure projects. Funding measures include:
- $4.1bn over seven years from 2024-25 for 65 new priority infrastructure projects across Australia;
- $10.1bn over 11 years from 2023-24 for existing projects in the Infrastructure Investment Program;
- $1.7bn in 2023-24 to continue existing road maintenance and safety programs
The Government has also announced it will reprofile $2.1bn beyond the forward estimates to better align with construction market conditions and project delivery timeframes.
Health
Generally a win for patients with limited investment in infrastructure to support the future of the health sector. This is not surprising following the significant $137.6bn investment from last year’s Budget.
Patients, pensioners, and the end users of the heath sector.
Investment in the infrastructure to support the future of the health and NDIS sector, and in particular hospitals.
CONTRIBUTOR
The overall spending on health, aged care and sport in 2024-25 will be $10.7bn, following on from last year’s $137.6bn. The health spend has been framed around the key themes of:
- Strengthening Medicare.
- Cheaper medicines.
- A fit and healthy Australia.
Strengthening Medicare
- $2.8bn commitment to strengthen Medicare, with highlights being:
- $900m indexation boost to Medicare rebates.
- $882m in funding to support older Australians in the healthcare system to help them avoid hospital admissions and being discharged early.
- $227m investment into Urgent Care Clinics to add another 29 clinics to the existing 58 clinics.
Whilst it is pleasing to see investment into Urgent Care Clinics, we would have liked to see investment into growing the future GP workforce to address staff shortages in the industry.
Aged Care
The Aged Care sector benefited strongly from an additional $2.2bn in this year’s Budget over the 2023-2024 Federal Budget with an $11.3bn allocation to develop a new regulatory framework, improve workforce conditions including upskilling, and grow the workforce through attracting skilled overseas migrants.
We have seen improved results in terms of workforce conditions, pay improvements and fast-tracked visas attracting workers, and these results are likely to continue with these announcements, including $2.5bn for 24/7 Registered Nurse coverage.
Pharmacy
With negotiations on the 8th Community Pharmacy Agreement (8CPA) yet to be finalised, it comes as no surprise that the Budget night announcement was light on policies that affect Community Pharmacy.
What has been announced today is a good start in providing access to cheaper medicine as well as professional services to the public and those in need. We hope to see further measures such as the above in the $3bn committed to the 8CPA by the Government to aid patients in accessing not only cheaper medicine, but also further health services provided by their local pharmacist.
Getting the NDIS Back on Track
This Budget has seen continued investment in the reform agenda, with an emphasis on scheme sustainability and compliance, quality, and safeguards measures. This has largely remained unchanged with the following notable additions:
- $45.5m over four years from 2024–25 (and $13.3m per year ongoing) to establish an NDIS Evidence Advisory Committee.
- $23.5m over two years from 2024–25 for Services Australia to continue fraud investigation and response activities.
- $20m over two years from 2024–25 for initial design and consultation work on reforms.
A Fit and Healthy Australia
Total package value of $1.3bn (last year $1.1bn), including:
- $71m for cancer prevention, screening and treatment.
- $43.9m towards eliminating HIV transmission.
- Approximately $490m for elite and community sports programs.
The above initiatives are targeted towards health prevention initiatives to reduce risky lifestyle factors and keep people out of the health system.
To continue reading, download our full Federal Budget report >>
Critical Minerals and Clean Energy
Funds from the National Reconstruction Fund (NRF) ($15bn) have been redirected to this initiative with a 51% increase in funding overall towards this new policy ($22.7bn).
- Downstream producers of ‘critical minerals’ (31 specified minerals including lithium, nickel and rare-earth elements) and renewable hydrocarbon.
- Businesses developing, adopting and exploring emerging green technologies.
- Investors in renewable energy.
Producers of ‘strategic minerals’ (i.e., aluminium, copper, phosphorous, tin and zinc) and other minerals who will not qualify for the tax incentives.
The 2024-25 Budget funding under the Future Made in Australia Policy takes key steps towards Australia’s net zero transformation. 
The funding is directed towards incentivising innovation, financing and production of critical minerals, green metals, low carbon liquid fuels and clean energy manufacturing.
The Budget also recognises the importance of the minerals that are essential to our energy transformation, not just locally, but globally. It includes investments to prepare Australia for the anticipated surge in global demand for critical minerals. These steps—along with investment in clean energy technologies—are intended to secure our economic resilience and security.
To continue reading, download our full Federal Budget report >>
