March 2024

Last night’s Budget saw the Federal government announce a $9.3 billion surplus for the current financial year ending in June, investment in “a future made in Australia”, including in renewable energy innovation, and a number of cost-of-living measures to tackle inflation and a slowing economy. 

For households, measures include a $300 energy rebate, confirmation that the age pension deeming rate will remain at current rates, providing super on government-paid parental leave, and higher Medicare levy thresholds for lower-income households.



Superannuation will be paid on the 20 weeks of government-funded parental leave from July 2025. Parents of babies born on or after 1 July 2025, will receive 12% superannuation contribution on top of their government-funded parental leave.  

Superannuation Guarantee 

As previously announced, the Superannuation Guarantee (SG) paid by employers to staff will increase from 11% to 11.5%, then to 12% from July 2025. 

Super balances over $3 million 

As previously announced and from July 2025, super fund members with balances of more than $3 million will be subject to a higher tax rate on earnings. The tax rate will be 30% of earnings, double the current tax rate of 15%.  

Payday super 

As previously announced and from July 2026, employers must pay Superannuation Guarantee (SG) contributions on payday rather than quarterly. This aims to make it easier for employees to track their superannuation payments and reduce the risk of unpaid superannuation.

Taxation & Medicare 

The previously announced ‘stage three tax cuts’ will begin on 1 July 2024. Those earning less than $146,000 will receive a bigger cut than already legislated, and those earning more receive a smaller tax cut. 

This includes: 

  • Reduction of the existing tax rates of 19% (to 16%), 32.5% (to 30%)  
  • Increase to the income threshold at which 37% is levied (from $120,000 to $135,0000) 
  • Increase to the income threshold for the highest rate of 45% (from $180,000 to $190,000).

(Please note that these figures exclude the Medicare levy, which will phase in for income over $26,000 for singles from July 2024)

Cost-of-living measures


To help with energy bills, every Australian household will get a $300 rebate on power bills, with eligible small businesses also receiving a $325 rebate. 

Deeming rate 

For those receiving the age pension, the Budget confirmed the deeming rate (used to estimate how much financial investments earn and a key determinant in welfare payments) will remain at current rates (0.25% - 2.25%) for another 12 months. 


To provide housing support, the maximum rate under the Commonwealth Rent Assistance program will increase by 10% to benefit low-income households facing rising rents. Further investment in social and affordable housing will address housing supply issues. 


To keep the cost of medicine down, there’s a one-year freeze on the maximum Pharmaceutical Benefits Scheme (PBS) patient co-payment for anyone with a Medicare card, and a five-year freeze for pensioners and other concession cardholders. The government is also finalising the new Eighth Community Pharmacy Agreement with an additional $3 billion in funding. 


Nursing, teaching, midwifery, and social work students who undertake unpaid, mandatory placements as part of their university and vocational education will be eligible for a $320 weekly payment. This aims to reduce financial stress for students.