2024-25 Budget: Individuals & Families
This article is part of our 2024-25 Federal Budget series. To view all articles, see The Price is Right: 2024-25 Budget or the bottom of this page.
Personal income tax cuts confirmed
Beginning 1 July 2024
As previously announced, the Government has legislated permanent tax cuts for all Australian taxpayers from 1 July 2024.
Relative to the previous Stage 3 plan, the redesigned cuts broaden the benefits of the tax cut by focussing on individuals with taxable income below $150,000.
New personal income tax rates
Resident individuals
| Tax rate | 2023-2024 | 2024-2025 |
|---|---|---|
| 0% | $0 - $18,200 | $0 - $18,200 |
| 16% | $18,201 - $45,000 | |
| 19% | $18,201 - $45,000 | |
| 30% | $45,001 - $135,000 | |
| 32.5% | $45,001 - $120,000 | |
| 37% | $120,001 - $180,000 | $135,001 - $190,000 |
| 45% | > $180,000 | > $190,000 |
Non-resident individuals
| Tax rate | 2023-2024 | 2024-2025 |
|---|---|---|
| 30% | $0 - $135,000 | |
| 32.5% | $0 - $120,000 | |
| 37% | $120,001 - $180,000 | $135,001 - $190,000 |
| 45% | > $180,000 | > $190,000 |
Working holiday-makers
| Tax rate | 2023-24 | 2024-25 |
|---|---|---|
| 15% | $0 - $45,000 | $0 - $45,000 |
| 30% | $45,001 - $135,000 | |
| 32.5% | $45,001 - $120,000 | |
| 37% | $120,001 - $180,000 | $135,001 - $190,000 |
| 45% | > $180,000 | > $190,000 |
Medicare levy low income thresholds increase
From 1 July 2023
The Medicare levy low-income thresholds will be increased for singles, families, and seniors and pensioners from 1 July 2023.
The increases to the thresholds take account of recent movements in the CPI so that low-income taxpayers generally continue to be exempt from paying the Medicare levy.
| Medicare low-income threshold | Threshold as at 30 June 2023 | Threshold from 1 July 2023 |
|---|---|---|
| Singles | $24,276 | $26,000 |
| Families | $40,939 | $43,846 |
| Single - seniors and pensioners | $38,365 | $41,089 |
| Family - seniors and pensioners | $53,406 | $57,198 |
| Family - for each dependent child or student* | $3,760 | $4,027 |
*For each dependent child or student, the family income threshold increases by the stated amount.
$300 energy relief for households
From 1 July 2024
Households will receive a credit of $300 on their energy bills credited as automatic quarterly instalments across 2024-25.
Energy relief will also be provided to eligible small businesses in the form of a $325 rebate.
Costing $3.5bn over three years from 2023-24, the measure extends and expands the
Energy Bill Relief Fund.
Capping indexation of HELP debts
From loan accounts that existed on 1 June 2023
As previously announced, the Government will cap the HELP indexation rate to be the lower of either the CPI or the Wage Price Index (WPI) with effect from 1 June 2023. The change will apply to all HELP, VET Student Loans, Australian Apprenticeship Support Loans and other student support loan accounts that existed on 1 June 2023.
By changing the calculation of HELP indexation from 1 June 2023, the indexation rate is reduced from:
- 7.1% to 3.2% in 2023, and
- 4.7% to around 4% in 2024.
The change resolves an issue for more than 3 million Australians with a HELP debt when the CPI indexation rate spiked to 7.1% last year.
An individual with an average HELP debt of $26,500 will see around $1,200 wiped from their outstanding HELP loans this year, pending the passage of legislation.
Estimated indexation for HELP debts
| HELP debt at 30 June 2023 | Total estimated credit for 2023 and 2024* |
|---|---|
| $15,000 | $670 |
| $25,000 | $1,120 |
| $30,000 | $1,345 |
| $35,000 | $1,570 |
| $40,000 | $1,795 |
| $45,000 | $2,020 |
| $50,000 | $2,245 |
| $60,000 | $2,690 |
| $100,000 | $4,485 |
| $130,000 | $5,835 |
*Actual credit amount will vary depending on individual circumstances including repayments made during the year. All HELP debts that were indexed in 2023 and are subject to indexation on 1 June 2024 will receive an indexation credit.

Superannuation on paid parental leave
From 1 July 2025
As previously announced, from 1 July 2025 superannuation will be paid on Paid Parental Leave payments.
Eligible parents will receive an additional payment based on the superannuation guarantee (i.e. 12% of their PPL payments), as a contribution to their superannuation fund.
This payment is in addition to the changes that saw families provided with an extra two weeks of leave (22 weeks total), which will increase to 24 weeks from July 2025 and 26 weeks from July 2026.
Improving aged care support
Over the next 5 years
The Government will provide funding of $2.2 billion over the next five years to deliver key aged care reforms and to continue to implement recommendations from the Royal Commission into Aged Care Quality and Safety.
This funding includes the release of an additional 24,100 home care packages in 2024-25.
The Government has also agreed to defer the commencement date of the new Aged Care Act to 1 July 2025.
The Government is currently in the middle of considering and implementing changes to the way aged care is funded on the back of the Royal Commission into Aged Care Quality and Safety report released in 2021.
This will likely impact home care and residential care fees in the future. Generally, with past reform we have seen existing residents and home care recipients ‘grandfathered’ under the rules at the time they entered.
Pharmaceutical benefits scheme (PBS) co-payments
From 1 January 2024
The Government will ensure that the cost of medicines remains low by freezing indexation:
- PBS general co-payments to not be indexed between 1 January 2025 and 31 December 2025 (inclusive), with indexation resuming on 1 January 2026
- PBS concessional co-payments to not be indexed between 1 January 2025 and 31 December 2029 (inclusive), with indexation resuming on 1 January 2030
The $1 optional discount available on patient co-payments for subsidised prescriptions will be reduced each year by the relevant notional indexation amount until the $1 discount has been reduced from $1 to zero.
From 1 January 2024, you may pay up to $31.60 for most PBS medicines, or $7.70 if you have a concession card. The Australian Government pays the remaining cost (with the exception of brand premiums and certain other allowable charges).
Domestic violence support program
From mid-2025
As previously announced, the Government has committed almost $1bn over 5 years to permanently establish the Leaving Violence Program – so those escaping violence can receive financial support, safety assessments and referrals to support pathways. Those eligible will be able to access up to $5,000 in financial support along with referral services, risk assessments and safety planning.
This makes permanent the Escaping Violence Program trial. More than 45,000 Australians have accessed the EVP payment since 2021. A total of 80 per cent of those accessing the support were self-referrals meaning without this program they may have fallen through the cracks of the support system.
If you have any questions about any of these initiatives, please refer to the links above, email us or phone our team on 02 9899 3044.
