The 2024 Federal Budget announcement has brought forth a mix of expectations and confirmations. While it may not have introduced groundbreaking changes, there are still key updates that executives and business owners in the mining and resources sectors should be aware of.
Despite the general lack of major tax alterations, these are the highlights that we believe are most relevant to you:
Investment in Critical Minerals
Australia’s abundance of critical minerals, including rare earth elements like lithium, nickel, cobalt, and silicon, is essential for capitalising on the global clean energy transition. This budget is committed to ensuring Australia can leverage these resources for technologies like solar panels, wind turbines, storage, and electric vehicle batteries.
- Production Tax Credit: A 10% production tax credit totaling $7 billion over the next decade for all 31 critical minerals to drive processing in Australia.
- Pre-feasibility Studies: $10.2 million allocated for developing common-user processing facilities to enhance Australia’s processing capacity.
- Trade Enhancement Initiative: $5.8 million for initiatives to boost critical minerals trade.
- Educational Program: $1 million for a pilot program to strengthen the sector’s capabilities in mitigating foreign interference.
Support for Exploration
Exploration stands as a vital cornerstone to sustain and bolster Australia’s resources sector, nurturing the pathway for A Future Made in Australia.
- Resourcing Australia’s Prosperity Program: $566.1 million over ten years to map Australia’s highly prospective regions and critical minerals.
- Landsat Next Satellite Project: $448.7 million over eleven years to continue a partnership with the US Geological Survey for satellite mapping, supporting mining exploration and environmental management.
Northern Australia Infrastructure
- NAIF Funding: $500 million earmarked for projects supporting the Government’s Critical Minerals Strategy and the Future Made in Australia initiative, including major projects near Gladstone and Alice Springs.
Personal Tax Rates and Superannuation
- New Personal Tax Rates: Reductions in various tax rates effective from 1 July 2024, benefiting millions of taxpayers.
The tax rates for the 2023/24 financial year compared to the 2024/25 financial year are as follows:
| 2023/24 | 2024/25 | ||||
| Taxable income | Tax | % on excess | Taxable income | Tax | % on excess |
| $18,200 | Nil | 19% | $18,200 | Nil | 16% |
| $45,000 | $5,092 | 32.5% | $45,000 | $4,288 | 30% |
| $120,000 | $29,467 | 37% | $135,000 | $31,288 | 37% |
| $180,000 | $51,667 | 45% | $190,000 | $51,638 | 45% |
- Superannuation Concessions: Reduction of tax concessions for superannuation balances exceeding $3 million from 1 July 2025.
- Superannuation Guarantee: Increase in the Superannuation Guarantee rate from 11% to 11.5% from 1 July 2024, and further to 12% from 1 July 2025.
- Payday Superannuation: Measures requiring employers to pay superannuation at the same time as salary and wages, effective from 1 July 2026.
- Contributions Caps: Increase in concessional contributions cap from $27,500 to $30,000 and non-concessional contributions cap from $110,000 to $120,000 from 1 July 2024.
Small Business Energy Rebate
- Energy Bill Relief Fund: $3.5 billion for energy bill relief, providing a $325 rebate for eligible small businesses and a $300 rebate for households from 1 July 2024.
We expect further information to be released over time about how these measures will be implemented.
To learn more about how the Federal Budget may affect you or your business, please contact Craig Barry, Resources Unearthed on +61 (0) 7 3007 2000 or email contact@resourcesunearthed.com.au.
For William Buck’s Full 2024 Federal Budget Analysis download here.
Read more about Craig here
Resources Unearthed is a solutions hub that provides integrated financial, legal, property and accounting and business advisory services for executives, professionals and business owners in the mining and resources sectors.
