By Chris Scriva
Key Budget Highlights and Client Implications Cost of Living Relief:
Electricity Bill Rebate:
A $300 rebate on electricity bills will be provided to all households. This relief can help reduce your monthly expenses. If you’re budgeting, consider adjusting your energy cost projections accordingly.
Commonwealth Rent Assistance:
A 10% increase in Commonwealth Rent Assistance will benefit eligible renters. If you receive this assistance, it might be an excellent time to review your rental agreements and savings plans to make the most of this additional support.
Tax Reforms:
Stage 3 Tax Cuts:
Starting from July 1, 2024, tax cuts will reduce the tax rates for various income brackets.
This could increase your take-home pay.
For incomes up to $45,000, the rate drops from 19% to 16%.
For incomes from $45,001 to $135,000, the rate drops from 32.5% to 30%.
Recommendation:
Adjust your income projections and withholdings to reflect these changes. This could result in increased disposable income or opportunities for additional investments.
Housing and Infrastructure:
Housing Investments: With $6.2 billion allocated for housing initiatives, there will be more opportunities for homeownership and rental improvements. If you are considering buying property or investing in real estate, this might be an advantageous time.
Regional Infrastructure:
Investments in regional infrastructure could increase property values and economic opportunities in those areas. If you own or plan to invest in regional properties, this could enhance their value and potential returns.
Health and Education:
Medicare and Health Services:
An additional $2.8 billion investment in Medicare aims to improve healthcare access. Ensure that your health insurance and medical expense plans are up-to-date to benefit from these improvements.
Education Reforms:
With $1.6 billion allocated to tertiary education reforms, there may be more opportunities for educational growth and funding. If you or your family members are considering higher education, explore potential new funding options and programs.
Support for Vulnerable Groups:
Aboriginal and Torres Strait Islander Initiatives: A $2.4 billion investment over five years supports jobs, health, education, justice, and housing. If you are part of these communities or involved in related support programs, leverage these funds for community and personal growth.
Energy and Environment:
Renewable Energy Investments: The government’s $22.7 billion investment in renewable energy could present new job opportunities and investments in green technologies. Consider diversifying your investment portfolio to include renewable energy stocks or funds.
Actions and Recommendations
Review and Adjust Budget:
With the new cost-of-living measures and tax cuts, revisit your household budget to adjust for lower expenses and higher disposable income.
Plan for Tax Changes: Make sure to update your tax strategy in line with the new tax rates starting from July 2024 to maximize your savings and investment opportunities.
Explore Housing Options:
Take advantage of increased housing investments to explore new home buying or rental opportunities.
Invest in Education and Health:
Utilize the increased funding in health and education sectors to ensure your family’s well-being and educational advancement.
Conclusion
The 2024-25 Federal Budget provides several opportunities to ease cost-of-living pressures, increase disposable income through tax cuts, and invest in housing and renewable energy. As your financial adviser, I recommend reviewing these areas and adjusting your financial plans to make the most of these changes.
If you have specific questions or need further personalizes advice, please feel free to reach out.
Contact Chris Scriva and Mobius Wealth Management
Mobius Wealth Management is an Adelaide-based financial advisory firm led by Chris Scriva. We offer personalized financial advice and also travel to meet clients’ needs. Our office is conveniently located in North Adelaide, South Australia. For any financial advice or inquiries, please feel free to contact us at 08 7089 6196. Chris Scriva and the team at Mobius Wealth Management are here to help you navigate your financial journey with confidence.
If you are looking for expert financial advisers in Adelaide, reach out to Mobius Wealth Management today!
For more detailed information, you can refer to the official Budget 2024-25 website (Budget 2024-25) (PM&C) (KPMG) (CPA Australia) (Budget 2024-25).
