The government has enjoyed a windfall gain, contributed to by high resource prices and increased taxes due to inflation and higher than expected employment. Most of the extra income has not been spent and has resulted in a forecast surplus in the budget. Some of the measures that may impact you are summarised below:

Government payments increase

Jobseeker, Youth Allowance & Austudy payments are set to increase by $40 a fortnight from September. Jobseekers over 60 are currently entitled to a higher payment than those under 60. This is now being expanded to Jobseekers over 55.

More single parents will become eligible for the single parenting payment with the eligibility age for the youngest child increasing to 14.

Rent assistance is increasing by $31 per fortnight.

Low and Middle Income Offset

The low and middle income offset which was due to expire on 30 June 2022 has not been extended. The offset provided a tax reduction of up to $1,500 for people earning less than $126,000. This will not be available for the 2023 Financial Year so when you lodge your 2023 Tax Return, your refund will no longer include this offset.

Business Measures

The main measure affecting businesses was a change to how much can be depreciated on new asset purchases. For more information see our article Budget 2023/24 – What does it mean for my Business?

Increase in minimum pension payments

In recent years the minimum amount you were required to withdraw from your Super Fund when you are in pension phase was reduced by 50%. This will no longer apply for the 2024 Financial Year. Minimum payments will return to the old scale which starts at 4% for people aged under 65 and increases depending on your age.