Key takeaways for brokers from the 2024-25 Federal Budget
Diving into the Budget papers, here are some important measures which are particularly relevant for brokers.
Federal Treasurer Jim Chalmers handed down the 2024-25 Federal Budget last night, which attempts to balance providing cost-of-living relief to Australians while continuing to put downward pressure on inflation.
Diving into the Budget papers, here are some important measures around offering support for small businesses and funding around disaster management preparedness, which are particularly relevant for brokers.
Support for small businesses
The Small Business Statement in the Budget outlines the federal government's commitment to improving small business outcomes, with $641.4 million allocated for targeted support.
As part of this, the government will extend the $20,000 instant asset write-off for 12 months. There's also $25.3 million on the table to help improve small businesses' payment times and $23.3 million to increase e-invoicing adoption, stop payment redirection scams, and boost productivity.
The Budget includes $3.5 billion of energy bill relief, including rebates of $325 to around one million small businesses, to relieve cost-of-living pressures.
Disaster resilience and preparedness
An investment of $138.7 million will improve Australia's response and resilience to natural hazards and disasters. Support includes funding for the National Emergency Management Agency (NEMA) to supply communities with vital goods, equipment, and temporary accommodation during an emergency, aerial firefighting capability, and mental health support. This is in addition to the $11.4 billion previously committed to disaster recovery funding arrangements for states and territories.
The federal government also plans to use around $519 million from its Future Drought Fund to help farmers and rural communities manage the impacts of climate change and prepare for future droughts.
In a media statement, the Minister for Emergency Management, Senator Murray Watt, reaffirmed the government's commitment to continuing to work with the insurance sector through the Hazards Insurance Partnership to identify ways of reducing disaster risk and putting downward pressure on premiums.
Brokers play an integral part in helping communities after natural disasters, and NIBA welcomes the disaster resilience measures outlined in the Budget and the Minister's commitment to working with industry to put downward pressure on premiums.
You can read the full 2024-25 Federal Budget here.