Key tax announcements:

• Stage 3 personal tax cuts will come into effect from 1 July 2024, resulting in an average annual tax reduction of $1,888 (equivalent to $36 per week).
• The instant asset write-off for small businesses is extended until 30 June 2025, allowing them to claim deductions for assets up to $20,000.
• Tax incentives will be provided for the production of Critical Minerals and Hydrogen, spanning from 2027-28 to 2040-41, aimed at supporting producers in the renewable hydrogen sector and the downstream refining and processing of Australia’s 31 critical minerals.
• Foreign resident CGT rules will undergo clarification and expansion, with changes to the principal asset test and mandatory notification requirements for transactions exceeding $20 million.
• Low-income thresholds for the Medicare levy will be raised for the fiscal year 2023-24.
• The personal income tax compliance program will be extended for an additional year from 1 July 2027, targeting issues such as overclaiming deductions and incorrect income reporting.
• The previously proposed 2022-23 Budget measure regarding intangible assets and significant global entities (SGEs) is scrapped, with a new provision set to commence from 1 July 2026.

Furthermore:

• Various changes to existing measures include adjustments to anti-avoidance start dates, exemptions for forestry entities from new earnings-based rules, and flexibility for the Commissioner regarding the use of taxpayer refunds to offset old tax debts.
• The reporting period for BAS notifications will be extended from 14 to 30 days.
• Transitional reporting arrangements for charities will be prolonged for an additional 5 years.
• The ATO Shadow Economy Compliance Program will be extended for 2 more years.
• Additional funding will be allocated to the Australian Taxation Office Counter Fraud Strategy to enhance tax and superannuation compliance.
• Social security deeming rates will remain frozen until 30 June 2025.

Superannuation Measures:

• Super contributions on Government Paid Parental Leave (PPL) for births and adoptions occurring on or after 1 July 2025.
• Funding to improve the handling of unpaid superannuation in bankruptcy and liquidations starting from 1 July 2024.
• Funding for the implementation of measures regarding super account balances exceeding $3 million, particularly within public sector schemes.

Additionally, there are provisions for:

• Additional support for the Gateway Network Governance Body.
• Further details required for early retirement incentives to employers.
• Examination of the impact of the Douglas decision on Social Security Means Testing.
• Recalibration of the Fair Entitlements Guarantee Recovery Program to address unpaid superannuation.

Overall, the 2024-2025 Federal Budget aims to alleviate immediate financial pressures on households and businesses in light of anticipated economic challenges ahead.