2024 Federal Budget: What it means for Small and Medium Businesses

May 15, 2024

The instant asset write-off, energy relief featured this year plus the big, new Future Made in Australia program, which aims to make us a renewable energy superpower.

Federal Budget: What does it mean for business?

New Policy Measures Since MYEFO

Housing Affordability
Headlining the government’s focus on housing affordability was increasing the maximum rate of Commonwealth Rent Assistance by 10% (worth $1.9bn over 5 years).

The government announced new measures and increased spending worth $1.5 bn over 7 years “increasing investment in infrastructure to build more homes sooner” and to support state and territory governments under a new agreement on social housing.

Energy bill relief for Households and Small Business
An extension and expansion of the Energy Bill Relief Fund to all households ($300 per household, paid on 1 July 2025) and eligible small businesses worth $3.5bn.

Pharmaceutical Benefits Scheme
Funding for the inclusion of new medicines on the PBS worth $3.4bn over 5 years. The government is also freezing the price of medications under the PBS for a year for all individuals and 5 years for pensioners and concession cardholders.
Further funding in response to the Royal Commission into Aged Care Quality and Safety worth around $2.2bn over 5 years.

Medicare
A $1.1bn for early discharge from hospitals and improving access to essential services (clinics) and modernizing digital health infrastructure.

Services Australia Funding
$2.8bn for sustaining and enhancing the MyGov platform and security and enhancements to Services Australia centers and maintenance of frontline staff.

Parental Leave
$1.1bn extra for superannuation payments on government paid parental leave payments over the 5 years.

Small businesses
The $20,000 instant asset write-off for all small businesses with annual turnover below $10 million will be extended for another year, covering around 4 million small businesses and worth around $290m.

Road and Rail Infrastructure
An additional $2.9bn on priority infrastructure including a direct rail connection from Brisbane to the Sunshine Coast, road and transport initiatives for Western Sydney
as well as a range of regional road projects.

Future made in Australia

Delivering the government’s Made in Australia agenda -promoting investment in key priority industries, including Australia’s plan to become a renewable energy superpower (including last year’s around green hydrogen), and investing in new digital capabilities, which is expected to increase payments by $2.6 billion over five years from 2023–24. Tonight’s announcements include additional focus on critical minerals, supply chains and the transition to net zero over the longer term.

Defence
$5.7bn over 4 years additional spending on the Integrated investment program and National defense strategy – expanding capabilities of the armed services and building the critical defense industry infrastructure and workforce
skills ahead of the adoption of new technologies.

Read the full report here 2024-25 Budget What does it mean for Business