14 May, 2024

Federal Budget 2024-25

Treasurer Jim Chalmers delivered Labor's third Federal Budget on Tuesday 14 May 2024, forecasting a surplus of $9.3 billion this financial year. Here, we look at how the budget affects you and your super.

This year's Federal Budget is focused on addressing current economic challenges while laying the foundation for future prosperity. Highlights include:  

  • Cost-of-living relief — addressing current pressures while keeping inflation in check.
  • Earning power — supporting initiatives for Australians to earn and keep more.
  • Economic resilience — investing in a "Future Made in Australia" for long-term strength.
  • Fiscal responsibility — forecasted surpluses, lower debt, and inflation returning to target.
  • The Government also announced several changes to super, some of which are subject to legislation passing. 

For super members and retirees

Super to be paid on Government-funded Paid Parental Leave

Super will be paid on Government funded Paid Parental Leave (PPL) to parents of babies born or adopted on or after 1 July 2025. 

PPL super payments will be made annually to your super fund from 1 July 2026, based on the Superannuation Guarantee rate (12 per cent).

This measure will reduce the impact of taking career breaks to care for young children on your super to help parents achieve a more dignified retirement.

It is expected that this measure will benefit approximately 180,000 Australian families.

Start date: 1 July 2025

Deeming rates will stay the same for another 12 months

The Government will extend a freeze on deeming rates for another 12 months. 

Deeming is a set of rules to determine how much income you earn from financial assets such as shares and super. It is used as part of the income test for Centrelink payments, including the age pension. 

This measure will assist part pensioners with bank deposits, investments and super pension income streams, which are captured under the deeming rules. It will also allow pensioners to benefit from increases in interest rates and returns without reductions in their age pension.  

The deeming rate has been frozen for the last two years with the top rate unchanged at 2.25 per cent.

This measure will benefit around 876,000 income support recipients, including 450,000 Age Pensioners.

Extended to: 30 June 2025

For employers

Support to administer Paid Parental leave

The Government will provide an additional $10 million over two years from 2024–25 to support small business employers in administering Paid Parental Leave.

Payday super and productivity measures

The Government will provide $60 million over four years from 2024–25 to increase the Productivity, Education and Training Fund to support practical activities by employer and worker representatives to boost workplace productivity and engage in tripartite cooperation. This will also support workplaces in implementing policy changes such as introducing payday super.

More details 

For a full breakdown of everything announced in the 2024-25 Federal Budget, visit budget.gov.au