2024–25 Federal Budget Summary

ECONOMIC OUTLOOK

ECONOMIC GROWTH

Global growth is expected to remain subdued over the next few years, at around 3.25% in 2024, 2025, and 2026. In Australia, real GDP is forecast to grow by 1.25% in 2023–24. Growth is expected to remain subdued over the forecast period. Real GDP is forecast to grow by 2%in 2024–25, 2.25% in 2025–26 and 2.25% in 2026–27. The Budget predicts a surplus of $9.3 billion in the 2024/25 period, however, with strong deficits for the remainder of the forward estimates. These larger deficits are driven by cost-of-living relief and the long tail of previous government announcements, particularly in health. Gross debt is now expected to peak at 35.2% of GDP in 2026–27 before declining to 30.2% by 2034–35.

Labour market and wages

As labour market conditions continue to ease over 2024–25, the unemployment rate is expected to rise slightly but remain below pre-pandemic levels.

Nominal wage growth has picked up and is growing at its fastest rate in nearly 15 years. Real wages are expected to rise further and grow by 0.5% through-the-year to the June quarter 2024.

Investment forecast

There is a solid pipeline of business investment, with annual investment growth expected to continue through to 2025–26.

Cost of Living

There are legislated tax cuts for 13.6 million Australian taxpayers from 1 July 2024 to provide cost-of-living relief, return bracket creep and boost labour supply. From 1 July 2024:

the 19% tax rate will be reduced to 16%
the 32.5% tax rate will be reduced to 30%
the income threshold above which the 37% tax rate applies will be increased from $120,000 to $135,000
the income threshold above which the 45% tax rate applies will be increased from $180,000 to $190,000.

In addition, there is a further $7.8 billion in cost-of-living relief, including energy bill relief, and rent assistance that will take pressure off households and businesses. From 1 July 2024, the Government will deliver rebates of $300 to every household and $325 to around one million small businesses across the country.

INFRASTRUCTURE

The Government is focusing its over $120 billion ten-year infrastructure investment pipeline on nationally significant projects.

Infrastructure spending in the Budget includes:

$4.1 billion over seven years from 2024–25 for 65 new priority infrastructure projects across Australia under the Infrastructure Investment Program, including:
- 1.9 billion for projects in Western Sydney, including $500.0 million for the Mamre Road Stage 2 Upgrade and $400 million for Elizabeth Drive – Priority Sections Upgrade
  o $300 million for the METRONET High-Capacity Signaling Program
  o Automatic Train Control – Stage 1 in Western Australia
  o $72 million for the Port Keats Road – Wadeye to Palumpa (Nganmarriyanga) in the Northern Territory
  o $134.5 million for the Mt Crosby Road Interchange Upgrade and $42.5 million for Bremer River Bridge (Westbound) Strengthening on the Warrego Highway in Queensland
  o $115 million for Zero Emission Buses Tranche 1 Infrastructure – Macquarie Park Depot in New South Wales
  o $80 million for the Lyell Highway – Granton to New Norfolk in Tasmania
  o $64 million for the Berrimah Road Duplication – Stuart Highway to Tiger Brennan Drive in the Northern Territory
  o $120 million for the Mount Barker and Verdun Interchange Upgrades in South Australia
  o $54 million for the Regional Road Safety Program
  o $53.6 million for the Great Northern Highway
  o Brooking Channel Bridge Replacement in Western Australia
  o $50 million to plan for Stage 2B of the Canberra Light Rail in the Australian Capital Territory
  o $17.6 million for projects in Victoria, including $12.0 million for the Bridgewater Road and Portland Ring Road intersection upgrade
$10.1 billion over 11 years from 2023–24 for existing projects in the Infrastructure Investment Program, including:
- $3.3 billion for North East Link in Victoria
  o $1.2 billion for the Direct Sunshine Coast Rail Line in Queensland
  o $1.4 billion for METRONET projects in Western Australia
  o $578.6 million for projects in New South Wales, including $112 million for the M1 Pacific Motorway Extension to Raymond Terrace
  o $431.7 million for the Coomera Connector Stage 1 (Coomera to Nerang) in Queensland
  o $133.6 million for projects in South Australia, including $100 million for the South Eastern Freeway Upgrade
  o $113.1 million for projects in Tasmania, including $50 million for the Mornington Roundabout Upgrade
  o $35.9 million for projects in the Northern Territory, including $25 million for the Carpentaria Highway Upgrade
  o $27.1 million for the William Hovell Drive Duplication in the Australian Capital Territory
$1.7 billion in 2033–34 to continue existing road maintenance and safety programs, including:
- $1 billion for the Roads to Recovery Program
  o $200 million for the Safer Local Roads and Infrastructure Program
  o $150 million for the Black Spot Program
$540 million for the Australian Rail Track Corporation to invest in the interstate rail network, including $150 million for the Maroona to Portland Line Upgrade
- $100 million over four years from 2025–26 for an Active Transport Fund to support the construction and upgrade of bicycle and walking paths across Australia.

ENVIRONMENT & ENERGY

$22.7 billion over 10 years to build a Future Made in Australia: economic transformation plan focused on encouraging and facilitating the private sector investment to help build a stronger, more diversified and more resilient economy powered by clean energy.

Includes:

Attracting and enabling investment
Making Australia a renewable energy superpower
Value adding to our resources and strengthening economic security
Backing Australian ideas: innovation, digital, science
Investing in people and places.

National Interest Framework (two streams):

1. Net zero transformation

Renewable hydrogen
Green metals: iron, steel, alumina and aluminum
Low carbon liquid fuels: aviation and diesel fuels.

2. Economic security and resilience

Critical minerals processing: to achieve net zero by 2050, demand anticipated to rise by ~350% by 2040
Clean energy manufacturing, including battery and solar panel supply chains
Strengthening policy toolkits.

Attracting and enabling investment (implementing the Government’s climate disclosure legislation):

Strengthening and streamlining approvals:
- $134.2 million to prioritise approvals for renewable energy projects of national significance
- $20.7 million to improve engagement with communities involved in energy transition
- $15.7 million to deliver streamlined and transparent approach to foreign investment
Promoting sustainable finance: o $17.3 million to mobilise private investment in sustainable activities
- $1.3 million to develop and release best practice guidance for disclosing net zero transition plans.

Making Australia a renewable superpower:

Innovation:
- $3.2 billion over 10 years through the Australian Renewable Energy Agency to support commercialisation of technologies
- $1.7 billion Future Made in Australia Innovation Fund to fund deployment of future innovative technologies and facilities linked directly to priority industries
Financing: work with investment vehicles including Clean Energy Finance National Corporation and the National Reconstruction Fund to ensure coordinated investment of key priorities.
Production: targeted incentives to scale up priority industries:
- Hydrogen Production Tax Incentive – $2 per kg of renewable hydrogen produced for up to 10 years per project (investment decision must be reached by 2030)
Guarantee of origin: easier to source low-emission products by building better markets and product standards for green products: $32.2 million to fast-track the initial phase of Guarantee of Origin scheme (start with renewable hydrogen, expand to green metals and low carbon liquid fuels).
Cheaper, cleaner energy:
- Unlock over $65 billion of renewable energy capacity through the Capacity Investment Scheme
- $27.7 million to better integrate consumer energy resources (including rooftop solar) into the grid
Securing the net zero transformation:
- development of six sector plans (electricity and energy, transport, industry, resources, agriculture and land, and the built environment) to guide decarbonization efforts and role of each sector in supporting transition to net zero.
Value adding to resources and strengthening economic security:
Critical Minerals Production Tax Incentive – 10% production incentive of relevant processing and refining costs
Priority critical minerals projects, including Critical Minerals Facility and the Northern Australia Infrastructure Facility
Investment in clean energy technology manufacturing capabilities, including $1 billion Solar Sunshot and $532.2 million for Battery Breakthrough initiative
National Renewable Energy Supply Chain Action Plan – support delivery of 82% renewable energy target with states and territories
Trade initiatives

Backing Australian ideas – innovation, digital and science

$466.4 million to build quantum computing capabilities, in partnership with Queensland Government and PsiQuantum
$566 million in open science by supporting Geoscience Australia
Strategic examination of Australia’s R&D system

Investing in people and places

$91 million over five years to accelerate development of clean energy workforce: New Energy Apprenticeship Program and VET clean energy courses
$55.6 million Building Women’s Careers program
$38.2 million support diversity in science, technology, engineering and maths
$68.4 million to attract and retain skilled industrial workforce to support defence industrial priorities
$209.3 million expand the Net Zero Economy Authority
$178.6 million worker transition support, including the Energy Industry Jobs Plan and place-based Regional Workforce Transition Plans

Housing

Focus on Northern Territory

$698.4 million (over four years from 2024 25 and $2 billion over ten years)
- 10-year agreement to fund delivery of housing and property and tenancy management measures in remote communities when the current one year.
- Deliver up to 270 houses a year to reduce the proportion of overcrowded dwellings.

• $20 million in 2023‑24

- Deliver an additional 49 houses under the existing Remote Housing Northern Territory Federation Funding Agreement, in partnership with and jointly funded by the Northern Territory Government, delivering a total of 206 houses under the one‑year agreement
$120 million (over three years from 2024‑25)
- Funding to continue the delivery of urgent repairs and maintenance of existing housing and essential infrastructure through an extension of the Northern Territory Homelands Federation Funding Agreement Restoring funding for Homelands.
- For housing and essential infrastructure in the Northern Territory Homelands, delivered through a new federal financial agreement with the Northern Territory Government
$100 million (over two years from 2022 23) Will enable an increase in housing supply in remote homelands in the Northern Territory.

National Housing Accord

The Government will undertake feasibility studies on a number of surplus Commonwealth owned land holdings to determine their suitability for release as housing to support the 1.2 million new, well-located homes target under the Accord.

- Subject to the findings of the feasibility studies, we will support delivery of new housing to meet the Accord’s housing supply target.
$20.8 million (over five years from 2024‑25)
- Additional support for the Australian Housing and Urban Research Institute and for the Treasury to continue its work supporting development of evidence‑based housing policy.
National Cabinet agreed to a national planning reform blueprint with planning, zoning, land release and other measures to improve housing supply and affordability. The Blueprint brings state and territory planning ministers together to progress 17 reforms to deliver more homes, including:
- - Streamlining development approvals.
  - Identifying well‑located development ready land.
  - Increasing housing density in target areas.
  - Identifying how housing can be built faster on sites with development approval but where development has not commenced (ie activating ‘zombie’ approvals).
  - Ensuring that state, regional and local strategic plans reflect their share of the national 1.2 million new homes target.
Original allocation of $350 million, updated to an initial $72 million a year by 2028–29, indexed from 2029–30.10,000 affordable homes over five years from 2024 – states and territories will support the delivery of up to an additional 10,000 affordable homes.
The cap on the Government guarantee of Housing Australia’s liabilities was increased by $2 billion to $7.5 billion in the 2023‑24 Budget to provide lower cost and longer‑term finance to community housing providers through the Affordable Housing Bond Aggregator.

National Housing and Homelessness Agreement

The 1‑year extension to the National Housing and Homelessness Agreement provides around $1.7 billion to states and territories to 30 June 2024. This includes additional funding of $67.5 million in 2023-24 to support states to meet the homelessness challenges identified in the 2021 Census.
$423.1 million in additional funding offered for the new $9.3 billion five‑year funding agreement to deliver social housing and homelessness services.
$1 billion (in 2023‑24) Housing Support Program – additional funding for enabling infrastructure (linked to later Housing Support Program measure)

Housing Australia Future Fund and Accord

Provide additional concessional financing of up to $1.9 billion for community housing providers and other charities to support the delivery of new homes under the HAFF and Accord. Will support delivery of the 40,000 social and affordable homes the Government committed to under the Housing Australia Future Fund and Accord.

Rent assistance

$1.9 billion to increase the maximum rates of commonwealth rent assistance by a further 10%
$34.3 million (over five years from 2022‑23) in tax incentives to encourage more Build to Rent developments. Includes halving the managed investment trust withholding tax rate from 30%to 15% and increasing the capital works tax deduction (depreciation) rate from 2.5 to 4% a year for newly constructed Build to Rent properties.

WOMEN

Gender-based violence

An additional $1.1 billon bringing total investment in women’s safety to $3.4 billion (since October 2022)
Developing First Nations national plan
$925.2 million over five years to permanently implement the Leaving Violence Program
Commissioning an expert-led rapid review of best practice approaches to prevention

Unpaid and paid care

Greater flexibility to recipients of Carer Payment, to undertake paid work, study or volunteering activities
Superannuation paid on Government-funded Paid Parental Leave for parents and babies born or adopted after 1 July 2025 (estimated $1.1 billion); building on $1.2 billion investment to expand PPL from 22-23 to 26-27.

Economic equality and security

Implement Working for Women: A Strategy for Gender Equality
Address industry gender segregation, tax cuts, the new Commonwealth Prac Payment

Health

$56.1 million over four years to improve access to sexual and reproductive healthcare for women

Leadership, representation and decision-making

Implement new targets for women’s representation on Australian Government Boards

FIRST NATIONS

Partnership with First Nations communities

$2.4 billion over five years to create new opportunities and achieve better outcomes across priority areas: jobs, health, education, justice, housing and other essential infrastructure and services.
$4 billion partnership with NT government to address overcrowding in remote housing in NT
Economic empowerment and self-determination: $777.4 million Community Development Program
$111.1 million invested in 24-25 for essential services in the NT

SUPPORT PEOPLE SEEKING WORK

$54 million investment in 2 new paid work placement programs
Extending eligibility for the existing higher rate of JobSeeker Payment
Higher rate of Energy Supplement to eligible recipients of at least $54.90 per fortnight

PLACE BASED APPROACHES

$100 million Outcomes Fund established from 24-25 for projects that support communities experiencing entrenched disadvantage.

SMALL BUSINESS – Australian Government Small Business statement

The government is investing $641 million in a range of small business initiatives for eligible businesses. This includes:

$290 million in cash flow support by extending the $20,000 instant asset write-off. Small businesses with annual turnover of less than $10 million will be able to immediately deduct eligible assets costing less than $20,000 until 30 June 2025.
a further $10.8 million to support
- the NewAccess for Small Business Owners program, which provides tailored, free and confidential mental health support to small business owners
- extending the Small Business Debt Helpline, a national, free and confidential phone-based financial counselling service for small business owners.
additional energy bill relief of $325 to eligible small businesses.
$25.3 million in this Budget to improve payment times to small businesses
$288.1 million to deliver and expand the Digital ID system which will lower the administrative burden on small businesses by reducing the amount of ID data they need to store and protect for their customers and their employees.
$13.2 million over three years in targeted assistance to increase the number of residential builders accredited under the Work Health and Safety Accreditation Scheme. Additional fee-free TAFE places
$23.3 million will support increased e-invoicing adoption to improve cash flow, disrupt payment redirection scams and boost productivity for small businesses
The Government is also investing $11 million per year for the ongoing delivery of the business.gov.au website and contact centre
$23.4 million for the Cyber Wardens program to provide free, online training for small business owners and their staff to help drive cultural change and a cyber-safe mindset in Australian small businesses
$11.1 million for the Small Business Cyber Resilience Service to help small businesses build their cyber resilience and provide support when affected by a cyber incident
$7.2 million for the Cyber Health Check online interactive tool to enable small and medium businesses to self-assess their cyber security maturity.
$10 million for Services Australia to provide additional support for small business employers administering the Paid Parental Leave scheme.
The Government has updated the Commonwealth Procurement Rules to increase significantly the small and medium business participation target and is improving AusTender to make it easier to identify small and medium businesses on government panels.
The Budget commits $39.9 million to the ‘Safe and Responsible AI’ program. This will maximise the benefits of AI while mitigating risks by progressing guardrails for high-risk AI and priority reviews of existing laws.
This builds upon existing measures including the National AI Centre, access to a free ‘Introduction to AI’ course through TAFE NSW, the establishment of a Temporary Expert Advisory Group, and developing an AI safety standard.

WORKFORCE

Higher education students and the construction workforce. Students and the Government will cap indexation of Higher Education Loan Program (HELP) and other student loan debts to the lower of the Consumer Price Index or Wage Price Index, so growth in debt does not outpace wages growth. The change in indexation will be retroactively applied from 1 June 2023 and will cut debts by $3 billion for 3 million Australians.
The Government will also invest $88.8 million over three years from 2024–25 to deliver 20,000 new fee-free TAFE places, including increased access to pre-apprenticeship programs in courses relevant to the construction sector.
The Government is providing $1.8 million to deliver streamlined skills assessments for around 1,900 migrants from comparable countries to work in Australia’s housing construction industry.

OTHER

Power bill relief
- $3.5 billion in new energy bill relief
- From July 1, Australians will receive an energy rebate of $300