Australian Federal Budget 2024

When is the 2024 Australian Federal Budget?

The Australian Treasurer will deliver his Federal Budget speech on Budget Night, which is on Tuesday 14 May 2024 at 7:30 pm AEST. He will forecast the 2024–25 financial year’s income and expenditure, and outline proposed taxation measures. He will also provide a review of the country’s economy and the actual expenditure and income against the Federal Budget from 2023.

Are tax cuts expected in the 2024 Federal Budget?

The Australian Government has already announced changes to the Stage 3 income tax cuts which will come into effect on 1 July 2024. These tax cuts passed through the Senate in February 2024, and include changes to the income ranges and tax rates in the marginal tax brackets.

Other tax cuts and reforms may feature in the Federal Budget, but these are yet to be announced. This year, it is likely that any such announcements will focus on increasing economic activity and employment, and easing the cost of living.

Will the 2024 Australian Budget help to ease the cost of living impacts on businesses?

The cost of living is a major economic challenge for businesses. As outlined in KPMG’s Australian Retail Outlook 2024, cash flow and working capital continue to be key issues for retailers as they deal with dampened consumer demand, inflationary pressure, and increasing wage and energy costs.

The 2023 Federal Budget included several cost of living assistance measures including JobSeeker payment increases and electricity subsidies for lower-income households. It is expected that cost of living relief will feature again in the 2024 Federal Budget. However, the Treasurer has suggested that relief measures in addition to the already announced tax cuts will likely be conservative and targeted.

What new Defence spending will be announced in the Federal Budget?

There are some indications that Defence spending in the 2024 Federal Budget may include the AUKUS nuclear submarine program and structural changes to defence forces from the Australian Government’s 2023 Defence Strategic Review.

In February 2024, the Australian Government announced it would double its combat-ready naval fleet, increasing Defence spending over the next 10 years by $11.1 billion. This reflects current concerns over defence capabilities amid rising geopolitical tensions and puts Defence spending on track to reach 2.4% of GDP by 2033–34.

Will the 2024 Federal Budget support the green energy industry?

As Australia (and the world) is below its net zero emissions targets under the Paris Agreement, the transition to green energy may be a priority in this year’s Federal Budget, with a focus on critical minerals, battery manufacturing, renewable hydrogen and ammonia, and green metals.

Measures to support these industries in the 2024 Federal Budget may include mobilising more public and private capital, and growing the skills and technology required for the green energy transition.

Will infrastructure projects be affected in the 2024 Federal Budget?

In late 2023, after an independent review into Australia's infrastructure investment pipeline, the Australian Government announced a major overhaul, transferring federal funding for several projects to 'corridor funding', with a focus on productivity, sustainability and liveability through infrastructure.

It is possible that further changes to infrastructure projects will be announced on Federal Budget Night – as the Australian Government tries to balance inflationary pressures, project commitments, and fiscal responsibilities.

Where can I find the latest Federal Budget news?

From early April, KPMG's analysts will be sharing regular pre-Budget 2024 information and insights, giving you information on how to prepare for the announcements on 14 May.

On Federal Budget Night, KPMG's detailed analysis and continuous coverage will be available on this page.

You can now subscribe to KPMG's Federal Budget 2024 newsletter to receive the latest news and analysis.