what does implications mean in a research paper

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What are Implications in Research?

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Table of Contents

Manuscripts that do not mention the implications of the study are often desk-rejected by journals. What constitutes the ‘implications’ of research, and why is it important to include research implications in your manuscript?

Research implications: An overview

Once you have laid out the key findings in your paper, you have to discuss how they will likely impact the world. What is the significance of your study to policymakers, the lay person, or other researchers? This speculation, made in good faith, constitutes your study’ implications.

A research paper that does not explain the study’s importance in light of its findings exists in a vacuum. The paper may be relevant to you, the author, and some of your co-workers. But it is unclear how others will benefit from reading it.

How can the findings of your study help create a better world? What can we infer from your conclusion about the current state of research in your field or the quality of methods you employed? These are all important implications of your study.

You cannot predict how your study will influence the world or research in the future. You can only make reasonable speculations. In order to ensure that the implications are reasonable, you have to be mindful of the limitations of your study.

In the research context, only speculations supported by data count as valid implications. If the implications you draw do not logically follow the key findings of your study, they may sound overblown or outright preposterous.

Suppose your study evaluated the effects of a new drug in the adult population. In that case, you could not honestly speculate on how the drug will impact paediatric care. Thus, the implications you draw from your study cannot exceed its scope.

Practical implications

Imagine that your study found a popular type of cognitive therapy to be ineffective in treating insomnia. Your findings imply that psychologists using this type of therapy were not seeing actual results but an expectancy effect. Studies that can potentially impact real-world problems by prompting policy change or change in treatments have practical implications.

It can be helpful to understand the difference between an implication of your study and a recommendation. Suppose your study compares two or more types of therapy, ranks them in the order of effectiveness, and explicitly asks clinicians to follow the most effective type. The suggestion made in the end constitutes a ‘recommendation’ and not an ‘implication’.

Theoretical implications

Are your findings in line with previous research? Did your results validate the methods used in previous research or invalidate them? Has your study discovered a new and helpful way to do experiments? Speculations on how your findings can potentially impact research in your field of study are theoretical implications.

The main difference between practical and theoretical implications is that theoretical implications may not be readily helpful to policymakers or the public.

How to Write Implications in Research

Implications usually form an essential part of the conclusion section of a research paper. As we have mentioned in a previous article, this section starts by summarising your work, but this time emphasises your work’s significance .

While writing the implications, it is helpful to ask, “who will benefit the most from reading my paper?”—policymakers, physicians, the public, or other researchers. Once you know your target population, explain how your findings can help them.

Think about how the findings in your study are similar or dissimilar to the findings of previous studies. Your study may reaffirm or disprove the results of other studies. This is an important implication.

Suggest future directions for research in the subject area in light of your findings or further research to confirm your findings. These are also crucial implications.

Do not try to exaggerate your results, and make sure your tone reflects the strength of your findings. If the implications mentioned in your paper are convincing, it can improve visibility for your work and spur similar studies in your field.

For more information on the importance of implications in research, and guidance on how to include them in your manuscript, visit Elsevier Author Services now!

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Implications in research: A quick guide

Last updated

11 January 2024

Reviewed by

Implications are a bridge between data and action, giving insight into the effects of the research and what it means. It's a chance for researchers to explain the  why  behind the research. 

When writing a research paper , reviewers will want to see you clearly state the implications of your research. If it's missing, they’ll likely reject your article. 

Let's explore what research implications are, why they matter, and how to include them in your next article or research paper. 

• What are implications in research?

Research implications are the consequences of research findings. They go beyond results and explore your research’s ramifications. 

Researchers can connect their research to the real-world impact by identifying the implications. These can inform further research, shape policy, or spark new solutions to old problems. 

Always clearly state your implications so they’re obvious to the reader. Never leave the reader to guess why your research matters. While it might seem obvious to you, it may not be evident to someone who isn't a subject matter expert. 

For example, you may do important sociological research with political implications. If a policymaker can't understand or connect those implications logically with your research, it reduces your impact.

• What are the key features of implications?

When writing your implications, ensure they have these key features: 

Implications should be clear, concise, and easily understood by a broad audience. You'll want to avoid overly technical language or jargon. Clearly stating your implications increases their impact and accessibility. 

Implications should link to specific results within your research to ensure they’re grounded in reality. You want them to demonstrate an impact on a particular field or research topic . 

Evidence-based

Give your implications a solid foundation of evidence. They need to be rational and based on data from your research, not conjecture. An evidence-based approach to implications will lend credibility and validity to your work.

Implications should take a balanced approach, considering the research's potential positive and negative consequences. A balanced perspective acknowledges the challenges and limitations of research and their impact on stakeholders. 

Future-oriented

Don't confine your implications to their immediate outcomes. You can explore the long-term effects of the research, including the impact on future research, policy decisions, and societal changes. Looking beyond the immediate adds more relevance to your research. 

When your implications capture these key characteristics, your research becomes more meaningful, impactful, and engaging. 

• Types of implications in research

The implications of your research will largely depend on what you are researching. 

However, we can broadly categorize the implications of research into two types: 

Practical: These implications focus on real-world applications and could improve policies and practices.

Theoretical: These implications are broader and might suggest changes to existing theories of models of the world. 

You'll first consider your research's implications in these two broad categories. Will your key findings have a real-world impact? Or are they challenging existing theories? 

Once you've established whether the implications are theoretical or practical, you can break your implication into more specific types. This might include: 

Political implications: How findings influence governance, policies, or political decisions

Social implications: Effects on societal norms, behaviors, or cultural practices

Technological implications: Impact on technological advancements or innovation

Clinical implications: Effects on healthcare, treatments, or medical practices

Commercial or business-relevant implications: Possible strategic paths or actions

Implications for future research: Guidance for future research, such as new avenues of study or refining the study methods

When thinking about the implications of your research, keep them clear and relevant. Consider the limitations and context of your research. 

For example, if your study focuses on a specific population in South America, you may not be able to claim the research has the same impact on the global population. The implication may be that we need further research on other population groups. 

• Understanding recommendations vs. implications

While "recommendations" and "implications" may be interchangeable, they have distinct roles within research.

Recommendations suggest action. They are specific, actionable suggestions you could take based on the research. Recommendations may be a part of the larger implication. 

Implications explain consequences. They are broader statements about how the research impacts specific fields, industries, institutions, or societies. 

Within a paper, you should always identify your implications before making recommendations. 

While every good research paper will include implications of research, it's not always necessary to include recommendations. Some research could have an extraordinary impact without real-world recommendations. 

• How to write implications in research

Including implications of research in your article or journal submission is essential. You need to clearly state your implications to tell the reviewer or reader why your research matters. 

Because implications are so important, writing them can feel overwhelming.

Here’s our step-by-step guide to make the process more manageable:

1. Summarize your key findings

Start by summarizing your research and highlighting the key discoveries or emerging patterns. This summary will become the foundation of your implications. 

2. Identify the implications

Think critically about the potential impact of your key findings. Consider how your research could influence practices, policies, theories, or societal norms. 

Address the positive and negative implications, and acknowledge the limitations and challenges of your research. 

If you still need to figure out the implications of your research, reread your introduction. Your introduction should include why you’re researching the subject and who might be interested in the results. This can help you consider the implications of your final research. 

3. Consider the larger impact

Go beyond the immediate impact and explore the implications on stakeholders outside your research group. You might include policymakers, practitioners, or other researchers.

4. Support with evidence

Cite specific findings from your research that support the implications. Connect them to your original thesis statement. 

You may have included why this research matters in your introduction, but now you'll want to support that implication with evidence from your research. 

Your evidence may result in implications that differ from the expected impact you cited in the introduction of your paper or your thesis statement. 

5. Review for clarity

Review your implications to ensure they are clear, concise, and jargon-free. Double-check that your implications link directly to your research findings and original thesis statement. 

Following these steps communicates your research implications effectively, boosting its long-term impact. 

Where do implications go in your research paper?

Implications often appear in the discussion section of a research paper between the presentation of findings and the conclusion. 

Putting them here allows you to naturally transition from the key findings to why the research matters. You'll be able to convey the larger impact of your research and transition to a conclusion.

• Examples of research implications

Thinking about and writing research implications can be tricky. 

To spark your critical thinking skills and articulate implications for your research, here are a few hypothetical examples of research implications: 

Teaching strategies

A study investigating the effectiveness of a new teaching method might have practical implications for educators. 

The research might suggest modifying current teaching strategies or changing the curriculum’s design. 

There may be an implication for further research into effective teaching methods and their impact on student testing scores. 

Social media impact

A research paper examines the impact of social media on teen mental health. 

Researchers find that spending over an hour on social media daily has significantly worse mental health effects than 15 minutes. 

There could be theoretical implications around the relationship between technology and human behavior. There could also be practical implications in writing responsible social media usage guidelines. 

Disease prevalence

A study analyzes the prevalence of a particular disease in a specific population. 

The researchers find this disease occurs in higher numbers in mountain communities. This could have practical implications on policy for healthcare allocation and resource distribution. 

There may be an implication for further research into why the disease appears in higher numbers at higher altitudes.

These examples demonstrate the considerable range of implications that research can generate.

Clearly articulating the implications of research allows you to enhance the impact and visibility of your work as a researcher. It also enables you to contribute to societal advancements by sharing your knowledge.

The implications of your work could make positive changes in the world around us.

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What Are Implications in Research? | Examples & Tips

As a researcher, you know you need to provide a background for your study and a clear rationale and to formulate the statement of the problem in a way that leaves no doubt that your work is relevant and important. You also need to guide the reader carefully through your story from beginning to end without leaving any methodological questions unanswered. 

But many authors, when arriving at the end of their paper, run out of steam or lose the thread a bit and struggle with finding an ending for their work. Something can then appear missing, even if the discussion section summarizes the findings clearly, relates them back to the questions raised in the introduction section , and discusses them in the context of earlier works. A tired author who just made it to the end can often not see these missing elements and may finish off their paper with a conclusion section that is more or less a repetition of what has already been stated. After all, what more is there to be said? 

But as sure as the sun will rise again the day after you finally submitted, you will get your paper back from your supervisor or the reviewers with a comment that says, “implications are missing.” For a reader who is not as invested in every little detail of your design and analyses, the main questions that a paper has to answer are “why was this study necessary?” and “why are the findings of this study significant, and for whom, and what are we supposed to do with them now?” The latter are the implications of your work. 

Didn’t I explain the implications in my introduction section?

You will hopefully have already explained why and for whom your study is important. But you now also need to clearly state how you think your actual findings (which might differ from what you expected to find at the beginning) may be relevant and/or can be used in practical or theoretical ways, for future research, or by policymakers. These implications need to be based on your study’s parameters and results, and potential limitations of your methodology or sample should be taken into account to avoid overgeneralization. 

If you make the reader guess what the significance of your work might be or let them assume you don’t think that your work will be important for anyone except yourself and your colleagues who share your enthusiasm because they are working on the same topic, then an editor or reviewer might easily see that as a reason for a desk-reject. To avoid this, in the following, we will give you an overview of the different types of implications that research findings can have, provide some examples for your inspiration, and clarify where your implications should go in your paper. 

Table of Contents:

• Types of Implications in Research

Recommendations Versus Implications 

• Research Implications Examples 
• Where Do the Implications Go in Your paper?

Types of Implications in Research 

Depending on the type of research you are doing (clinical, philosophical, political…) the implications of your findings can likewise be clinical, philosophical, political, social, ethical—you name it. The most important distinction, however, is the one between practical implications and theoretical implications, and what many reviewers immediately notice and flag as an issue is when there is no mention of any kind of practical contribution of the work described in a paper. 

Of course, if you study a mathematical theory, then your findings might simply lead to the debunking of another theory as false, and you might need to do some mental gymnastics if you really wanted to apply that to a real-world problem. But chances are, in that case, your reviewers and readers won’t ask for a real-world implication. In most other cases, however, if you really want to convince your audience that your work deserves attention, publication, prizes, and whatnot, then you need to link whatever you did in the lab or found in the library to real life and highlight how your findings might have a lasting effect on your field (for example, methodologically), common practices (e.g., patient treatment or teaching standards), society at large (maybe the way we communicate), or ethical standards (e.g., in animal research). 

The question is not whether your findings will change the world, but whether they could if they were publicized and implemented—according to the Merriam-Webster online dictionary , the essential meaning of implication is a “possible future effect or result”. This possible result is what you have to identify and describe. And while being creative is certainly allowed, make sure your assumptions stay within realistic expectations, and don’t forget to take the limitations of your methodology or your sample into account. 

If you studied the genetic basis of a disease in some animal model, then make sure you have good reason to draw conclusions about the treatment of the same disease in humans if you don’t want to put off the editor who decides whether to even send your manuscript out for review. Likewise, if you explored the effects of the Covid-19 pandemic on higher education institutions in your country, then make sure the conclusions you draw hold in the context of other countries’ pandemic situations and restrictions and differences across education systems before you claim that they are relevant in a global context. 

Implications, as we already explored, state the importance of your study and how your findings may be relevant for the fine-tuning of certain practices, theoretical models, policymaking, or future research studies. As stated earlier, that does not necessarily mean that you believe your findings will change the world tomorrow, but that you have reason to believe they could have an impact in a specific way. Recommendations, on the other hand, are specific suggestions regarding the best course of action in a certain situation based on your findings. If, for example, you used three different established methods in your field to tackle the same problem, compared the outcomes, and concluded that one of these methods is, in fact, insufficient and should not be used anymore, then that is a recommendation for future research. 

Or if you analyzed how a monetary “Corona support program” in your country affected the local economy and found that most of the money the government provided went to Amazon and not to local businesses, then you can recommend that your government come up with a better plan next time. Such specific recommendations should usually follow the implications, not the other way around, because you always need to identify the implications of your work, but not every study allows the author to make practical suggestions or real-world recommendations.

Research Implications Examples

Clinical implications  .

Let’s say you discovered a new antibiotic that could eliminate a specific pathogen effectively without generating resistance (the main problem with antibiotics). The clinical implications of your findings would then be that infections with this pathogen could be more rapidly treated than before (without you predicting or suggesting any specific action to happen as a result of your findings). A recommendation would be that doctors should start using this new antibiotic, that it should be included in the official treatment guidelines, that it should be covered by the national health insurance of your country, etc.—but depending on how conclusive your findings are or how much more research or development might be needed to get from your findings to the actual medication, such recommendations might be a big stretch. The implications, however, since they state the potential of your findings, are valid in any case and should not be missing from your discussion section, even if your findings are just one small step along the way.

Social implications 

The social implications of the study are defined as the ability or potential of research to impact society in visible ways. One of the obvious fields of research that strives for a social impact through the implementation of evidence that increases the overall quality of people’s lives is psychology. Whether your research explores the new work-life-balance movement and its effect on mental well-being, psychological interventions at schools to compensate for the stress many children are experiencing since the beginning of the Covid-19 pandemic, or how work from home is changing family dynamics, you can most likely draw conclusions that go beyond just your study sample and describe potential (theoretical or practical) effects of your findings in the real world. Be careful, however, that you don’t overgeneralize from your sample or your data to the general population without having solid reasons to do so (and explain those reasons).

Implications for future research

Even if your findings are not going to lead to societal changes, new educational policies, or an overhaul of the national pension system, they might have important implications for future research studies. Maybe you used a new technique that is more precise or more efficient or way cheaper than existing methods and this could enable more labs around the world to study a specific problem. Or maybe you found that a gene that is known to be involved in one disease might also be involved in another disease, which opens up new avenues for research and treatment options. As stated earlier, make sure you don’t confuse recommendations (which you might not be able to make, based on your findings, and don’t necessarily have to) with implications, which are the potential effect that your findings could have—independently of whether you have any influence on that. 

Where Do the Implications Go in Your Paper? 

The implications are part of your discussion section, where you summarize your findings and then put them into context—this context being earlier research but also the potential effect your findings could have in the real world, in whatever scenario you think might be relevant. There is no “implication section” and no rule as to where in the discussion section you need to include these details because the order of information depends on how you structured your methods and your results section and how your findings turned out to prove or disprove your hypotheses. You simply need to work the potential effects of your findings into your discussion section in a logical way.

But the order of information is relevant when it comes to your conclusion at the very end of your discussion section: Here, you start with a very short summary of your study and results, then provide the (theoretical, practical, ethical, social, technological…) implications of your work, and end with a specific recommendation if (and only if) your findings call for that. If you have not paid attention to the importance of your implications while writing your discussion section, then this is your chance to fix that before you finalize and submit your paper and let an editor and reviewers judge the relevance of your work. 

Make sure you do not suddenly come up with practical ideas that look like they were plucked out of the air because someone reminded you to “add some implications” at the last minute. If you don’t know where to start, then go back to your introduction section, look at your rationale and research questions, look at how your findings answered those questions, and ask yourself who else could benefit from knowing what you know now.

Consider Using English Editing Services 

And before you submit your manuscript to your target journal’s editor, be sure to get professional English editing services from Wordvice, including academic editing and manuscript editing , which are tailored to the needs of your paper’s subject area. If you need instant proofreading or paraphrasing while drafting your work, check out our online AI text editor , Wordvice AI, which is trained on millions of words of academic writing data and tailored for research writers.

For more advice on how to write all the different parts of your research paper , on how to make a research paper outline if you are struggling with putting everything you did together, or on how to write the best cover letter that will convince an editor to send your manuscript out for review, head over to the Wordvice academic resources pages, where we have dozens of helpful articles and videos on research writing and publications.

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• Writing Tips

How to Write an “Implications of Research” Section

4-minute read

• 24th October 2022

When writing research papers , theses, journal articles, or dissertations, one cannot ignore the importance of research. You’re not only the writer of your paper but also the researcher ! Moreover, it’s not just about researching your topic, filling your paper with abundant citations, and topping it off with a reference list. You need to dig deep into your research and provide related literature on your topic. You must also discuss the implications of your research.

Interested in learning more about implications of research? Read on! This post will define these implications, why they’re essential, and most importantly, how to write them. If you’re a visual learner, you might enjoy this video .

What Are Implications of Research?

Implications are potential questions from your research that justify further exploration. They state how your research findings could affect policies, theories, and/or practices.

Implications can either be practical or theoretical. The former is the direct impact of your findings on related practices, whereas the latter is the impact on the theories you have chosen in your study.

Example of a practical implication: If you’re researching a teaching method, the implication would be how teachers can use that method based on your findings.

Example of a theoretical implication: You added a new variable to Theory A so that it could cover a broader perspective.

Finally, implications aren’t the same as recommendations, and it’s important to know the difference between them .

Questions you should consider when developing the implications section:

●  What is the significance of your findings?

●  How do the findings of your study fit with or contradict existing research on this topic?

●  Do your results support or challenge existing theories? If they support them, what new information do they contribute? If they challenge them, why do you think that is?

Why Are Implications Important?

You need implications for the following reasons:

● To reflect on what you set out to accomplish in the first place

● To see if there’s a change to the initial perspective, now that you’ve collected the data

● To inform your audience, who might be curious about the impact of your research

How to Write an Implications Section

Usually, you write your research implications in the discussion section of your paper. This is the section before the conclusion when you discuss all the hard work you did. Additionally, you’ll write the implications section before making recommendations for future research.

Implications should begin with what you discovered in your study, which differs from what previous studies found, and then you can discuss the implications of your findings.

Your implications need to be specific, meaning you should show the exact contributions of your research and why they’re essential. They should also begin with a specific sentence structure.

Examples of starting implication sentences:

●  These results build on existing evidence of…

●  These findings suggest that…

●  These results should be considered when…

●  While previous research has focused on x , these results show that y …

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You should write your implications after you’ve stated the results of your research. In other words, summarize your findings and put them into context.

The result : One study found that young learners enjoy short activities when learning a foreign language.

The implications : This result suggests that foreign language teachers use short activities when teaching young learners, as they positively affect learning.

 Example 2

The result : One study found that people who listen to calming music just before going to bed sleep better than those who watch TV.

The implications : These findings suggest that listening to calming music aids sleep quality, whereas watching TV does not.

To summarize, remember these key pointers:

●  Implications are the impact of your findings on the field of study.

●  They serve as a reflection of the research you’ve conducted.              

●  They show the specific contributions of your findings and why the audience should care.

●  They can be practical or theoretical.

●  They aren’t the same as recommendations.

●  You write them in the discussion section of the paper.

●  State the results first, and then state their implications.

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• A Research Guide
• Research Paper Guide

How to Write Implications in Research

• Implications definition
• Recommendations vs implications
• Types of implications in research
• Step-by-step implications writing guide

Research implications examples

What the implications of the research definition?

• Theoretical implications stand for all the new additions to theories that have already been presented in the past. At the same time, one can use a totally new theory that provides a background and a framework for a study.
• Practical implications are about potential consequences that show the practical side of things.

Recommendations VS Implications

• Implied content versus proposed writing. It means that an implication should provide an outcome from your study. The recommendation is always based on the outcome, along with your words as a personal opinion.
• Potential impact a study may have versus a specific act. When you are composing your research paper, your implications have the purpose of discussing how the findings of the study matter. They should tell how your research has an impact on the subject that you address. Now, unlike the implications section of the research paper, recommendations refer to peculiar actions or steps you must take. They should be based on your opinion precisely and talk about what must be done since your research findings confirm that.

What are the types of implications in research?

• Political implications. These are mostly common for Law and Political Sciences students basing implications on a certain study, a speech, or legislative standards. It is a case when implications and recommendations can also be used to achieve an efficient result.
• Technological implications. When dealing with a technological implication, it serves as special implications for future research manuals where you discuss the study with several examples. Do not use a methodology in this section, as it can only be mentioned briefly.
• Findings related to policies. When you have implemented a special policy or you are dealing with a medical or legal finding, you should add it to your policy. Adding an implications section is necessary when it must be highlighted in your research.
• Topical (subject) implications. These are based on your subject and serve as a way to clarify things or as a method to narrow things down by supporting the finding before it is linked to a thesis statement or your main scientific argument.

Step-by-step implications in research writing guide

Step 1: talk about what has been discovered in your research., step 2: name the differences compared to what previous studies have found., step 3: discuss the implications of your findings., step 4: add specific information to showcase your contributions., step 5: match it with your discussion and thesis statement..

Green energy can benefit from the use of vertical turbines versus horizontal turbines due to construction methods and saving costs. 

The use of AI-based apps that contain repetition and grammar-checking will help ESL students and learners with special needs. 

Most studies provide more research on the social emphasis that influences the problem of bullying in the village area. It points out that most people have different cultural behavior where the problem of bullying is approached differently.

If you encounter challenges in terms of precise replication, you can use a CR genetic code to follow the policies used in 1994. Considering the theoretical limitations, it is necessary to provide exact theories and practical steps. It will help to resolve the challenge and compare what has been available back then. It will help to trace the temporal backline. 

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Implications or Recommendations in Research: What's the Difference?

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High-quality research articles that get many citations contain both implications and recommendations. Implications are the impact your research makes, whereas recommendations are specific actions that can then be taken based on your findings, such as for more research or for policymaking.

Updated on August 23, 2022

That seems clear enough, but the two are commonly confused.

This confusion is especially true if you come from a so-called high-context culture in which information is often implied based on the situation, as in many Asian cultures. High-context cultures are different from low-context cultures where information is more direct and explicit (as in North America and many European cultures).

Let's set these two straight in a low-context way; i.e., we'll be specific and direct! This is the best way to be in English academic writing because you're writing for the world.

Implications and recommendations in a research article

The standard format of STEM research articles is what's called IMRaD:

• Introduction
• Discussion/conclusions

Some journals call for a separate conclusions section, while others have the conclusions as the last part of the discussion. You'll write these four (or five) sections in the same sequence, though, no matter the journal.

The discussion section is typically where you restate your results and how well they confirmed your hypotheses. Give readers the answer to the questions for which they're looking to you for an answer.

At this point, many researchers assume their paper is finished. After all, aren't the results the most important part? As you might have guessed, no, you're not quite done yet.

The discussion/conclusions section is where to say what happened and what should now happen

The discussion/conclusions section of every good scientific article should contain the implications and recommendations.

The implications, first of all, are the impact your results have on your specific field. A high-impact, highly cited article will also broaden the scope here and provide implications to other fields. This is what makes research cross-disciplinary.

Recommendations, however, are suggestions to improve your field based on your results.

These two aspects help the reader understand your broader content: How and why your work is important to the world. They also tell the reader what can be changed in the future based on your results.

These aspects are what editors are looking for when selecting papers for peer review.

Implications and recommendations are, thus, written at the end of the discussion section, and before the concluding paragraph. They help to “wrap up” your paper. Once your reader understands what you found, the next logical step is what those results mean and what should come next.

Then they can take the baton, in the form of your work, and run with it. That gets you cited and extends your impact!

The order of implications and recommendations also matters. Both are written after you've summarized your main findings in the discussion section. Then, those results are interpreted based on ongoing work in the field. After this, the implications are stated, followed by the recommendations.

Writing an academic research paper is a bit like running a race. Finish strong, with your most important conclusion (recommendation) at the end. Leave readers with an understanding of your work's importance. Avoid generic, obvious phrases like "more research is needed to fully address this issue." Be specific.

The main differences between implications and recommendations (table)

Now let's dig a bit deeper into actually how to write these parts.

What are implications?

Research implications tell us how and why your results are important for the field at large. They help answer the question of “what does it mean?” Implications tell us how your work contributes to your field and what it adds to it. They're used when you want to tell your peers why your research is important for ongoing theory, practice, policymaking, and for future research.

Crucially, your implications must be evidence-based. This means they must be derived from the results in the paper.

Implications are written after you've summarized your main findings in the discussion section. They come before the recommendations and before the concluding paragraph. There is no specific section dedicated to implications. They must be integrated into your discussion so that the reader understands why the results are meaningful and what they add to the field.

A good strategy is to separate your implications into types. Implications can be social, political, technological, related to policies, or others, depending on your topic. The most frequently used types are theoretical and practical. Theoretical implications relate to how your findings connect to other theories or ideas in your field, while practical implications are related to what we can do with the results.

Key features of implications

• State the impact your research makes
• Helps us understand why your results are important
• Must be evidence-based
• Written in the discussion, before recommendations
• Can be theoretical, practical, or other (social, political, etc.)

Examples of implications

Let's take a look at some examples of research results below with their implications.

The result : one study found that learning items over time improves memory more than cramming material in a bunch of information at once .

The implications : This result suggests memory is better when studying is spread out over time, which could be due to memory consolidation processes.

The result : an intervention study found that mindfulness helps improve mental health if you have anxiety.

The implications : This result has implications for the role of executive functions on anxiety.

The result : a study found that musical learning helps language learning in children .

The implications : these findings suggest that language and music may work together to aid development.

What are recommendations?

As noted above, explaining how your results contribute to the real world is an important part of a successful article.

Likewise, stating how your findings can be used to improve something in future research is equally important. This brings us to the recommendations.

Research recommendations are suggestions and solutions you give for certain situations based on your results. Once the reader understands what your results mean with the implications, the next question they need to know is "what's next?"

Recommendations are calls to action on ways certain things in the field can be improved in the future based on your results. Recommendations are used when you want to convey that something different should be done based on what your analyses revealed.

Similar to implications, recommendations are also evidence-based. This means that your recommendations to the field must be drawn directly from your results.

The goal of the recommendations is to make clear, specific, and realistic suggestions to future researchers before they conduct a similar experiment. No matter what area your research is in, there will always be further research to do. Try to think about what would be helpful for other researchers to know before starting their work.

Recommendations are also written in the discussion section. They come after the implications and before the concluding paragraphs. Similar to the implications, there is usually no specific section dedicated to the recommendations. However, depending on how many solutions you want to suggest to the field, they may be written as a subsection.

Key features of recommendations

• Statements about what can be done differently in the field based on your findings
• Must be realistic and specific
• Written in the discussion, after implications and before conclusions
• Related to both your field and, preferably, a wider context to the research

Examples of recommendations

Here are some research results and their recommendations.

A meta-analysis found that actively recalling material from your memory is better than simply re-reading it .

• The recommendation: Based on these findings, teachers and other educators should encourage students to practice active recall strategies.

A medical intervention found that daily exercise helps prevent cardiovascular disease .

• The recommendation: Based on these results, physicians are recommended to encourage patients to exercise and walk regularly. Also recommended is to encourage more walking through public health offices in communities.

A study found that many research articles do not contain the sample sizes needed to statistically confirm their findings .

The recommendation: To improve the current state of the field, researchers should consider doing power analysis based on their experiment's design.

What else is important about implications and recommendations?

When writing recommendations and implications, be careful not to overstate the impact of your results. It can be tempting for researchers to inflate the importance of their findings and make grandiose statements about what their work means.

Remember that implications and recommendations must be coming directly from your results. Therefore, they must be straightforward, realistic, and plausible.

Another good thing to remember is to make sure the implications and recommendations are stated clearly and separately. Do not attach them to the endings of other paragraphs just to add them in. Use similar example phrases as those listed in the table when starting your sentences to clearly indicate when it's an implication and when it's a recommendation.

When your peers, or brand-new readers, read your paper, they shouldn't have to hunt through your discussion to find the implications and recommendations. They should be clear, visible, and understandable on their own.

That'll get you cited more, and you'll make a greater contribution to your area of science while extending the life and impact of your work.

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• How to Write Discussions and Conclusions

The discussion section contains the results and outcomes of a study. An effective discussion informs readers what can be learned from your experiment and provides context for the results.

What makes an effective discussion?

When you’re ready to write your discussion, you’ve already introduced the purpose of your study and provided an in-depth description of the methodology. The discussion informs readers about the larger implications of your study based on the results. Highlighting these implications while not overstating the findings can be challenging, especially when you’re submitting to a journal that selects articles based on novelty or potential impact. Regardless of what journal you are submitting to, the discussion section always serves the same purpose: concluding what your study results actually mean.

A successful discussion section puts your findings in context. It should include:

• the results of your research,
• a discussion of related research, and
• a comparison between your results and initial hypothesis.

Tip: Not all journals share the same naming conventions.

You can apply the advice in this article to the conclusion, results or discussion sections of your manuscript.

Our Early Career Researcher community tells us that the conclusion is often considered the most difficult aspect of a manuscript to write. To help, this guide provides questions to ask yourself, a basic structure to model your discussion off of and examples from published manuscripts. 

Questions to ask yourself:

• Was my hypothesis correct?
• If my hypothesis is partially correct or entirely different, what can be learned from the results? 
• How do the conclusions reshape or add onto the existing knowledge in the field? What does previous research say about the topic? 
• Why are the results important or relevant to your audience? Do they add further evidence to a scientific consensus or disprove prior studies? 
• How can future research build on these observations? What are the key experiments that must be done? 
• What is the “take-home” message you want your reader to leave with?

How to structure a discussion

Trying to fit a complete discussion into a single paragraph can add unnecessary stress to the writing process. If possible, you’ll want to give yourself two or three paragraphs to give the reader a comprehensive understanding of your study as a whole. Here’s one way to structure an effective discussion:

Writing Tips

While the above sections can help you brainstorm and structure your discussion, there are many common mistakes that writers revert to when having difficulties with their paper. Writing a discussion can be a delicate balance between summarizing your results, providing proper context for your research and avoiding introducing new information. Remember that your paper should be both confident and honest about the results! 

• Read the journal’s guidelines on the discussion and conclusion sections. If possible, learn about the guidelines before writing the discussion to ensure you’re writing to meet their expectations. 
• Begin with a clear statement of the principal findings. This will reinforce the main take-away for the reader and set up the rest of the discussion. 
• Explain why the outcomes of your study are important to the reader. Discuss the implications of your findings realistically based on previous literature, highlighting both the strengths and limitations of the research. 
• State whether the results prove or disprove your hypothesis. If your hypothesis was disproved, what might be the reasons? 
• Introduce new or expanded ways to think about the research question. Indicate what next steps can be taken to further pursue any unresolved questions. 
• If dealing with a contemporary or ongoing problem, such as climate change, discuss possible consequences if the problem is avoided. 
• Be concise. Adding unnecessary detail can distract from the main findings. 

Don’t

• Rewrite your abstract. Statements with “we investigated” or “we studied” generally do not belong in the discussion. 
• Include new arguments or evidence not previously discussed. Necessary information and evidence should be introduced in the main body of the paper. 
• Apologize. Even if your research contains significant limitations, don’t undermine your authority by including statements that doubt your methodology or execution. 
• Shy away from speaking on limitations or negative results. Including limitations and negative results will give readers a complete understanding of the presented research. Potential limitations include sources of potential bias, threats to internal or external validity, barriers to implementing an intervention and other issues inherent to the study design. 
• Overstate the importance of your findings. Making grand statements about how a study will fully resolve large questions can lead readers to doubt the success of the research. 

Snippets of Effective Discussions:

Consumer-based actions to reduce plastic pollution in rivers: A multi-criteria decision analysis approach

Identifying reliable indicators of fitness in polar bears

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What are the Academic Implications of a Research Study?

Gain knowledge about the distinction between academic limitations and recommendations to successfully incorporate them into your research.

If you intend to write a research paper, you should be aware that you must provide a background story that will lead to the rationale behind the research, providing context and assisting in the formulation of the issue statement, aiming to leave no doubt about your work, demonstrating its relevance and importance, and stating all possible methodological questions.

However, it is not uncommon for researchers to lose momentum at the end and struggle to find the correct conclusion for their research. Despite the fact that the discussion properly explains the findings, connects them to the issues raised in the introduction, and investigates them in the context of past research, something may appear to be lacking. This frequently leads to the conclusion of a research that is similar to one that has already been expressed.

This results in a lack of academic implications when readers or reviewers fail to recognize the significance of your research. To avoid this, continue reading this article to learn more about the academic implications .

What are the academic implications?

Implications are the consequences of your research; you must describe exactly why you assume your actual results are relevant and/or might be employed in future research. Most importantly, your implications must be supported by evidence. 

These implications must be based on the details and outcomes of your research, and any limitations of your approach or sample should be recognized in order to avoid gross generalization.

Depending on the type of research you perform, the implications of your findings can be clinical, philosophical, political, social, or ethical. It is crucial to understand that the most essential distinction is between practical implications, theoretical implications and implications for future research.

Practical Implications

The term “practical” literally means “real outcomes.” The reality that would occur if certain circumstances were met is referred to as practical implication. Determining the practical implications of several solutions can aid in determining which ones deliver the intended results.

For example, when doing clinical research, these outcomes are more likely to be practical. Assume you’re doing a trial for a medicine that treats infection without generating organism resistance; the consequences in this situation are that illnesses can be treated more promptly than in the past.

Theoretical Implications

In contrast, the theoretical implication is a newly discovered addition(s) to current theories or establishing elements for new theories. Theory’s role in research is to propose fascinating and potentially promising subjects to focus on.

The ability or possibility of research to affect society in apparent ways is characterized by theoretical implications. For example, research on human relationships and how COVID affects them can theorize that humans are less likely to interact now they’ve been through COVID. 

However, be cautious not to extrapolate your sampling or data to the broader population unless you have compelling reasons for it.

Implications that require future research

If you discover that your findings do not result in social reforms, innovative pedagogical policies or medical changes, they may have vital implications for future research projects. 

This implies that if you discover anything that may have an impact on other research, you should discuss the implications. Just be careful not to mistake an implication as a recommendation.

Implications vs. Recommendations

In a research paper, an implication is a conclusion that can be deduced from the research findings and the significance of these findings; this does not immediately imply that you think your findings will change everything by tomorrow, but that you have reason to expect they could have an impact in a particular way.

Recommendations, on the other hand, are precise ideas based on your findings about the best way to proceed in a certain scenario. For example, if you discovered a better approach to deal with a certain type of data (that may be utilized in other topics), you would recommend they discard the previous method.

Simply defined, an implication is an implicit conclusion of your research, whereas a recommendation is what you recommend based on the facts. 

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Implications – Definition, Types, and Applications

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Implications

Definition :

Implications refer to the consequences, outcomes, or effects of a particular action, decision, or event. It involves a careful analysis of the potential effects of something before it happens or after it has occurred. In other words, implications are the logical or practical results of something.

Implications Synonym

Following are synonyms used as implications:

• Consequences
• Ramifications
• Repercussions
• Significance
• Interpretations
• Relationship
• Correlation.

Types of Implications

Types of Implications are as follows:

Material Implication

This is the standard form of implication used in propositional logic. It is often denoted by the symbol “→” and can be read as “if-then.” For example, “If it is raining, then the ground is wet” can be written as “p → q,” where “p” represents “it is raining” and “q” represents “the ground is wet.” Material implication is also used in first-order logic.

Logical Implication

This is a more general type of implication that includes material implication as a special case. In logical implication, the truth of the antecedent implies the truth of the consequent, but the converse may not be true. For example, “All cats are mammals” logically implies “Some mammals are cats,” but the converse is not true. Logical implication is used in predicate logic.

Material Equivalence

This is a type of implication that goes in both directions. It is often denoted by the symbol “↔” and can be read as “if and only if.” For example, “Two lines are perpendicular if and only if their slopes are negative reciprocals” can be written as “p ↔ q,” where “p” represents “two lines are perpendicular” and “q” represents “their slopes are negative reciprocals.”

Causal Implication

This is a type of implication used in causal reasoning. It asserts that if one event (the cause) occurs, then another event (the effect) will necessarily follow. For example, “Smoking causes lung cancer” is a causal implication.

Modal Implication

This is a type of implication used in modal logic, which deals with concepts like possibility and necessity. Modal implication asserts that if something is necessarily true, then something else must also be true. For example, “If it is necessarily true that all bachelors are unmarried, then it is necessarily true that some unmarried men are bachelors.”

Implication in set theory

In set theory, an implication can be defined using set notation. For example, if A and B are sets, then the implication “if x is in A, then x is in B” can be written as A ⊆ B, which means “A is a subset of B.”

Material Conditional Implication

This is a type of implication that is similar to material implication, but with some subtle differences. It is often denoted by the symbol “⊢” and is used in proof theory. For example, “p, q ⊢ r” means that if p and q are true, then r must also be true.

Counterfactual Implication

This is a type of implication that deals with hypothetical or imagined situations. It asserts that if something had been true in the past or if something were different in the present, then something else would necessarily be true. For example, “If I had studied harder, I would have passed the test” is a counterfactual implication.

Psychological Implication

This is a type of implication that deals with the psychological effects of one event on another. For example, “If a child is exposed to violence at a young age, they may be more likely to exhibit violent behavior later in life” is a psychological implication.

Applications of Implications

Implications are used in a variety of fields and applications, including:

• Mathematics: In mathematical logic, implications are used to describe the relationship between propositions. An implication is a statement that connects a hypothesis to a conclusion, such as “If p, then q.” Implications are used extensively in proof writing.
• Computer Science : In computer science, implications are used to describe the behavior of algorithms and systems. Implications are used in programming languages to define logical conditions, and in databases to describe relationships between data.
• Philosophy : In philosophy , implications are used to express necessary and sufficient conditions for certain concepts or beliefs. Implications are often used to form arguments, as they can help to demonstrate the logical consistency or inconsistency of a set of beliefs.
• Law : Implications are used in legal reasoning and analysis, especially in interpreting statutes and legal precedents. Lawyers and judges use implications to determine the scope and meaning of legal concepts, and to assess the validity of legal arguments.
• Science : In science, implications are used to make predictions and test hypotheses. Scientists use implications to describe the expected outcomes of experiments and observations, and to determine whether their findings are consistent with existing theories.
• Business : In business, implications are used to make strategic decisions and assess the potential outcomes of different courses of action. Business analysts use implications to evaluate market trends and customer behavior, and to identify opportunities for growth and innovation.
• Education : In education, implications are used to evaluate the effectiveness of teaching methods and educational programs. Educators use implications to assess the impact of different teaching strategies on student learning outcomes, and to design curricula that are tailored to the needs of different learners.
• Psychology : In psychology , implications are used to study human behavior and cognition. Psychologists use implications to explore the relationships between different variables, such as personality traits, emotions, and social behaviors. Implications are also used to develop and test theories about human development and mental health.
• Marketing : In marketing, implications are used to assess the potential impact of advertising and promotional campaigns on consumer behavior. Marketers use implications to determine the most effective ways to reach and engage with target audiences, and to measure the effectiveness of different marketing strategies.
• Communication : In communication, implications are used to understand the meaning and significance of different forms of communication, such as language, nonverbal cues, and media messages. Communication scholars use implications to explore the ways in which communication shapes social relationships, identities, and cultural values.

How to Write Implications

Writing implications involves identifying the potential consequences or outcomes of a particular action, event, or decision. Here are some steps to follow when writing implications:

• Identify the relevant information: Start by analyzing the information you have and identify the key points or issues. This will help you understand the implications of the decision or action being taken.
• Determine the potential consequences: Think about the potential outcomes of the decision or action. Consider the short-term and long-term effects, as well as the positive and negative consequences.
• Consider different scenarios : Try to anticipate different scenarios that may arise as a result of the decision or action. Consider how different stakeholders may be affected and what their reactions might be.
• Evaluate the implications: Evaluate the potential implications of the decision or action based on the information you have gathered. Consider the impact on individuals, organizations, and society as a whole.
• Present your findings: Present your findings clearly and concisely. Use data and evidence to support your conclusions and provide recommendations for next steps.
• Consider potential solutions: If the implications are negative, consider potential solutions that could mitigate the negative consequences. If the implications are positive, consider how to maximize the benefits.
• Review and revise: Review your implications and make revisions as needed. Ensure that your implications are clear, concise, and supported by evidence.

Importance of Implications

Implications are important because they help us to understand the potential consequences or effects of a particular decision, action, or event. They allow us to anticipate and prepare for possible outcomes, both positive and negative, which can inform our choices and decision-making processes.

Here are some specific reasons why implications are important:

• Decision-making : Implications help us to make better decisions by providing us with a clearer understanding of the potential consequences of our choices. By considering the implications of different options, we can choose the one that is most likely to lead to a positive outcome.
• Planning : Implications are also important in the planning process. By identifying the potential consequences of different scenarios, we can develop more effective plans that take into account the risks and opportunities associated with each option.
• Risk management : Understanding the implications of a particular decision or action can help us to manage risk more effectively. By anticipating possible negative outcomes, we can take steps to minimize or mitigate those risks, and be better prepared to handle any issues that arise.
• Communication: Communicating the implications of a particular decision or action can help to ensure that everyone involved is on the same page. By sharing information about potential consequences, we can ensure that everyone understands the risks and opportunities associated with a particular course of action.

When to use Implications

Implications are useful when you want to describe the consequences or results of a particular action, event, or situation. They are commonly used in academic writing, legal documents, and scientific reports to explain the potential impact of findings, policies, or decisions.

Here are some examples of when to use implications:

• In scientific research , implications are used to explain the potential applications or limitations of the study findings.
• In legal documents , implications are used to describe the possible consequences of a court ruling or decision.
• In business reports , implications are used to explain the potential effects of a new product launch, marketing strategy, or financial decision.
• In academic writing , implications are used to discuss the broader significance of research findings and to suggest future research directions.

Advantages of Implications

Some Advantages of Implications are as follows:

• Clarity : Implications provide a clear and concise statement of what follows from a given premise. By defining the relationship between the premise and the conclusion, they eliminate ambiguity and make the argument easier to understand.
• Rigor : Implications provide a rigorous framework for reasoning. They require that the relationship between the premise and the conclusion be logical and consistent, which helps to avoid fallacious reasoning and ensures that the argument is sound.
• Consistency : Implications help to ensure that arguments are consistent. By defining the relationship between the premise and the conclusion, they ensure that the argument is coherent and that there are no contradictions.
• Predictive power: Implications can be used to make predictions. By defining the relationship between the premise and the conclusion, they allow us to make predictions about what will happen in the future if certain conditions are met.
• Applicability : Implications are widely applicable across a range of domains. They can be used in mathematics, science, philosophy, and many other areas to make logical arguments and draw conclusions based on evidence and reasoning.

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• What Does Implications Mean? | Definition & Examples

What Does Implications Mean? | Definition & Examples

Published on 25 October 2022 by Eoghan Ryan . Revised on 23 May 2023.

Implication is a noun that refers to the act of implying (i.e., suggesting something without explicitly stating it) and to something that is implied or suggested. It’s also used to refer to the act of implicating (i.e., proving someone’s involvement in a crime) and to the state of being implicated.

Implications is often used in academic writing to refer to the possible impact and influence of a study or to what conclusions can be drawn from a particular result.

The implications of this study for further research are discussed in the final chapter.

I resent the implication that my comment was facetious !

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Table of contents

Implications vs effects, frequently asked questions.

‘Implications’ is often used interchangeably with ‘ effects ‘. However, they don’t mean the same thing.

• Implications are the possible conclusions that can be drawn as a result of a cause or action.
• Effects are the consequences or results of a cause or action.

This study examines the effects of long-term stress on memory.

The presidential scandal has major political implications .

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There are numerous synonyms for the multiple meanings of implication .

There are numerous antonyms and near antonyms for the multiple meanings of implication .

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• Evaluating Sources
• Primary Sources
• Secondary Sources
• Tiertiary Sources
• Scholarly vs. Popular Publications
• Qualitative Methods
• Quantitative Methods
• Insiderness
• Using Non-Textual Elements
• Limitations of the Study
• Common Grammar Mistakes
• Writing Concisely
• Avoiding Plagiarism
• Footnotes or Endnotes?
• Further Readings
• Generative AI and Writing
• USC Libraries Tutorials and Other Guides
• Bibliography

The purpose of the discussion section is to interpret and describe the significance of your findings in relation to what was already known about the research problem being investigated and to explain any new understanding or insights that emerged as a result of your research. The discussion will always connect to the introduction by way of the research questions or hypotheses you posed and the literature you reviewed, but the discussion does not simply repeat or rearrange the first parts of your paper; the discussion clearly explains how your study advanced the reader's understanding of the research problem from where you left them at the end of your review of prior research.

Annesley, Thomas M. “The Discussion Section: Your Closing Argument.” Clinical Chemistry 56 (November 2010): 1671-1674; Peacock, Matthew. “Communicative Moves in the Discussion Section of Research Articles.” System 30 (December 2002): 479-497.

Importance of a Good Discussion

The discussion section is often considered the most important part of your research paper because it:

• Most effectively demonstrates your ability as a researcher to think critically about an issue, to develop creative solutions to problems based upon a logical synthesis of the findings, and to formulate a deeper, more profound understanding of the research problem under investigation;
• Presents the underlying meaning of your research, notes possible implications in other areas of study, and explores possible improvements that can be made in order to further develop the concerns of your research;
• Highlights the importance of your study and how it can contribute to understanding the research problem within the field of study;
• Presents how the findings from your study revealed and helped fill gaps in the literature that had not been previously exposed or adequately described; and,
• Engages the reader in thinking critically about issues based on an evidence-based interpretation of findings; it is not governed strictly by objective reporting of information.

Annesley Thomas M. “The Discussion Section: Your Closing Argument.” Clinical Chemistry 56 (November 2010): 1671-1674; Bitchener, John and Helen Basturkmen. “Perceptions of the Difficulties of Postgraduate L2 Thesis Students Writing the Discussion Section.” Journal of English for Academic Purposes 5 (January 2006): 4-18; Kretchmer, Paul. Fourteen Steps to Writing an Effective Discussion Section. San Francisco Edit, 2003-2008.

Structure and Writing Style

I.  General Rules

These are the general rules you should adopt when composing your discussion of the results :

• Do not be verbose or repetitive; be concise and make your points clearly
• Avoid the use of jargon or undefined technical language
• Follow a logical stream of thought; in general, interpret and discuss the significance of your findings in the same sequence you described them in your results section [a notable exception is to begin by highlighting an unexpected result or a finding that can grab the reader's attention]
• Use the present verb tense, especially for established facts; however, refer to specific works or prior studies in the past tense
• If needed, use subheadings to help organize your discussion or to categorize your interpretations into themes

II.  The Content

The content of the discussion section of your paper most often includes :

• Explanation of results : Comment on whether or not the results were expected for each set of findings; go into greater depth to explain findings that were unexpected or especially profound. If appropriate, note any unusual or unanticipated patterns or trends that emerged from your results and explain their meaning in relation to the research problem.
• References to previous research : Either compare your results with the findings from other studies or use the studies to support a claim. This can include re-visiting key sources already cited in your literature review section, or, save them to cite later in the discussion section if they are more important to compare with your results instead of being a part of the general literature review of prior research used to provide context and background information. Note that you can make this decision to highlight specific studies after you have begun writing the discussion section.
• Deduction : A claim for how the results can be applied more generally. For example, describing lessons learned, proposing recommendations that can help improve a situation, or highlighting best practices.
• Hypothesis : A more general claim or possible conclusion arising from the results [which may be proved or disproved in subsequent research]. This can be framed as new research questions that emerged as a consequence of your analysis.

III.  Organization and Structure

Keep the following sequential points in mind as you organize and write the discussion section of your paper:

• Think of your discussion as an inverted pyramid. Organize the discussion from the general to the specific, linking your findings to the literature, then to theory, then to practice [if appropriate].
• Use the same key terms, narrative style, and verb tense [present] that you used when describing the research problem in your introduction.
• Begin by briefly re-stating the research problem you were investigating and answer all of the research questions underpinning the problem that you posed in the introduction.
• Describe the patterns, principles, and relationships shown by each major findings and place them in proper perspective. The sequence of this information is important; first state the answer, then the relevant results, then cite the work of others. If appropriate, refer the reader to a figure or table to help enhance the interpretation of the data [either within the text or as an appendix].
• Regardless of where it's mentioned, a good discussion section includes analysis of any unexpected findings. This part of the discussion should begin with a description of the unanticipated finding, followed by a brief interpretation as to why you believe it appeared and, if necessary, its possible significance in relation to the overall study. If more than one unexpected finding emerged during the study, describe each of them in the order they appeared as you gathered or analyzed the data. As noted, the exception to discussing findings in the same order you described them in the results section would be to begin by highlighting the implications of a particularly unexpected or significant finding that emerged from the study, followed by a discussion of the remaining findings.
• Before concluding the discussion, identify potential limitations and weaknesses if you do not plan to do so in the conclusion of the paper. Comment on their relative importance in relation to your overall interpretation of the results and, if necessary, note how they may affect the validity of your findings. Avoid using an apologetic tone; however, be honest and self-critical [e.g., in retrospect, had you included a particular question in a survey instrument, additional data could have been revealed].
• The discussion section should end with a concise summary of the principal implications of the findings regardless of their significance. Give a brief explanation about why you believe the findings and conclusions of your study are important and how they support broader knowledge or understanding of the research problem. This can be followed by any recommendations for further research. However, do not offer recommendations which could have been easily addressed within the study. This would demonstrate to the reader that you have inadequately examined and interpreted the data.

IV.  Overall Objectives

The objectives of your discussion section should include the following: I.  Reiterate the Research Problem/State the Major Findings

Briefly reiterate the research problem or problems you are investigating and the methods you used to investigate them, then move quickly to describe the major findings of the study. You should write a direct, declarative, and succinct proclamation of the study results, usually in one paragraph.

II.  Explain the Meaning of the Findings and Why They are Important

No one has thought as long and hard about your study as you have. Systematically explain the underlying meaning of your findings and state why you believe they are significant. After reading the discussion section, you want the reader to think critically about the results and why they are important. You don’t want to force the reader to go through the paper multiple times to figure out what it all means. If applicable, begin this part of the section by repeating what you consider to be your most significant or unanticipated finding first, then systematically review each finding. Otherwise, follow the general order you reported the findings presented in the results section.

III.  Relate the Findings to Similar Studies

No study in the social sciences is so novel or possesses such a restricted focus that it has absolutely no relation to previously published research. The discussion section should relate your results to those found in other studies, particularly if questions raised from prior studies served as the motivation for your research. This is important because comparing and contrasting the findings of other studies helps to support the overall importance of your results and it highlights how and in what ways your study differs from other research about the topic. Note that any significant or unanticipated finding is often because there was no prior research to indicate the finding could occur. If there is prior research to indicate this, you need to explain why it was significant or unanticipated. IV.  Consider Alternative Explanations of the Findings

It is important to remember that the purpose of research in the social sciences is to discover and not to prove . When writing the discussion section, you should carefully consider all possible explanations for the study results, rather than just those that fit your hypothesis or prior assumptions and biases. This is especially important when describing the discovery of significant or unanticipated findings.

V.  Acknowledge the Study’s Limitations

It is far better for you to identify and acknowledge your study’s limitations than to have them pointed out by your professor! Note any unanswered questions or issues your study could not address and describe the generalizability of your results to other situations. If a limitation is applicable to the method chosen to gather information, then describe in detail the problems you encountered and why. VI.  Make Suggestions for Further Research

You may choose to conclude the discussion section by making suggestions for further research [as opposed to offering suggestions in the conclusion of your paper]. Although your study can offer important insights about the research problem, this is where you can address other questions related to the problem that remain unanswered or highlight hidden issues that were revealed as a result of conducting your research. You should frame your suggestions by linking the need for further research to the limitations of your study [e.g., in future studies, the survey instrument should include more questions that ask..."] or linking to critical issues revealed from the data that were not considered initially in your research.

NOTE: Besides the literature review section, the preponderance of references to sources is usually found in the discussion section . A few historical references may be helpful for perspective, but most of the references should be relatively recent and included to aid in the interpretation of your results, to support the significance of a finding, and/or to place a finding within a particular context. If a study that you cited does not support your findings, don't ignore it--clearly explain why your research findings differ from theirs.

V.  Problems to Avoid

• Do not waste time restating your results . Should you need to remind the reader of a finding to be discussed, use "bridge sentences" that relate the result to the interpretation. An example would be: “In the case of determining available housing to single women with children in rural areas of Texas, the findings suggest that access to good schools is important...," then move on to further explaining this finding and its implications.
• As noted, recommendations for further research can be included in either the discussion or conclusion of your paper, but do not repeat your recommendations in the both sections. Think about the overall narrative flow of your paper to determine where best to locate this information. However, if your findings raise a lot of new questions or issues, consider including suggestions for further research in the discussion section.
• Do not introduce new results in the discussion section. Be wary of mistaking the reiteration of a specific finding for an interpretation because it may confuse the reader. The description of findings [results section] and the interpretation of their significance [discussion section] should be distinct parts of your paper. If you choose to combine the results section and the discussion section into a single narrative, you must be clear in how you report the information discovered and your own interpretation of each finding. This approach is not recommended if you lack experience writing college-level research papers.
• Use of the first person pronoun is generally acceptable. Using first person singular pronouns can help emphasize a point or illustrate a contrasting finding. However, keep in mind that too much use of the first person can actually distract the reader from the main points [i.e., I know you're telling me this--just tell me!].

Analyzing vs. Summarizing. Department of English Writing Guide. George Mason University; Discussion. The Structure, Format, Content, and Style of a Journal-Style Scientific Paper. Department of Biology. Bates College; Hess, Dean R. "How to Write an Effective Discussion." Respiratory Care 49 (October 2004); Kretchmer, Paul. Fourteen Steps to Writing to Writing an Effective Discussion Section. San Francisco Edit, 2003-2008; The Lab Report. University College Writing Centre. University of Toronto; Sauaia, A. et al. "The Anatomy of an Article: The Discussion Section: "How Does the Article I Read Today Change What I Will Recommend to my Patients Tomorrow?” The Journal of Trauma and Acute Care Surgery 74 (June 2013): 1599-1602; Research Limitations & Future Research . Lund Research Ltd., 2012; Summary: Using it Wisely. The Writing Center. University of North Carolina; Schafer, Mickey S. Writing the Discussion. Writing in Psychology course syllabus. University of Florida; Yellin, Linda L. A Sociology Writer's Guide . Boston, MA: Allyn and Bacon, 2009.

Writing Tip

Don’t Over-Interpret the Results!

Interpretation is a subjective exercise. As such, you should always approach the selection and interpretation of your findings introspectively and to think critically about the possibility of judgmental biases unintentionally entering into discussions about the significance of your work. With this in mind, be careful that you do not read more into the findings than can be supported by the evidence you have gathered. Remember that the data are the data: nothing more, nothing less.

MacCoun, Robert J. "Biases in the Interpretation and Use of Research Results." Annual Review of Psychology 49 (February 1998): 259-287; Ward, Paulet al, editors. The Oxford Handbook of Expertise . Oxford, UK: Oxford University Press, 2018.

Another Writing Tip

Don't Write Two Results Sections!

One of the most common mistakes that you can make when discussing the results of your study is to present a superficial interpretation of the findings that more or less re-states the results section of your paper. Obviously, you must refer to your results when discussing them, but focus on the interpretation of those results and their significance in relation to the research problem, not the data itself.

Azar, Beth. "Discussing Your Findings."  American Psychological Association gradPSYCH Magazine (January 2006).

Yet Another Writing Tip

Avoid Unwarranted Speculation!

The discussion section should remain focused on the findings of your study. For example, if the purpose of your research was to measure the impact of foreign aid on increasing access to education among disadvantaged children in Bangladesh, it would not be appropriate to speculate about how your findings might apply to populations in other countries without drawing from existing studies to support your claim or if analysis of other countries was not a part of your original research design. If you feel compelled to speculate, do so in the form of describing possible implications or explaining possible impacts. Be certain that you clearly identify your comments as speculation or as a suggestion for where further research is needed. Sometimes your professor will encourage you to expand your discussion of the results in this way, while others don’t care what your opinion is beyond your effort to interpret the data in relation to the research problem.

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• Last Updated: May 15, 2024 9:53 AM
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• Published May 15, 2024
• 20 Minute Read

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Australian Federal Budget 2024: news as it happens

On Tuesday 14 May 2024, Treasurer Jim Chalmers handed down the 2024-25 Australian Federal Budget with updates to key economic forecasts.

From personal and business tax to banking, superannuation, infrastructure, health, defence, climate change, and more, the Federal Budget has implications for every corner of the Australian economy and impacts our status on the global stage.

KPMG’s team of experts provides full analysis following the Federal Budget announcement outlining insights and implications for various sectors and businesses. Our analysis is aimed at helping you prepare for any implications that may affect your business.

What does the Federal Budget mean for your business?

Get in touch and we'll help you prepare for any implications that may affect your business..

The Budget shows an expected surplus in the underlying cash balance for 2023-24 of $9.3 billion, a $10.4 billion positive turnaround from the 2023-24 mid-year forecast. Higher commodity prices and personal income tax receipts contributed heavily to the outcome.

Federal Government net debt is expected to remain reasonably stable as a percentage of GDP at between 20 and 22 percent over the forward estimates.

Inflation is forecast by Treasury to moderate to below 3 percent per annum for 2024-25 and the remainder of the forward estimates period. Contributing to this outcome is the extension of the Energy Bill Relief Fund, providing $3.5 billion in support through to 2025-26.

The Future Made in Australia initiative emphasises clean energy and critical minerals and includes more than $13 billion over the period to 2034 (weighted towards the years beyond the current inflation challenge) to fund tax incentives for their production.

The Budget contains additional funding for social and affordable housing infrastructure over the next decade. This should support productivity, including where it enables workers to live closer to their workplace and to other facilities. The increase to Commonwealth Rent Assistance is a sensible complement to these measures.

We also welcome the introduction of superannuation contributions on government-paid parental leave from 1 July 2025, promoting improved gender equality in retirement.

The funding for the development of policies and capabilities to support safe and responsible adoption of Artificial Intelligence technology is also a welcome announcement.

Overall, the Budget measures on energy and housing affordability, combined with the already legislated personal income tax cuts from 1 July 2024, may give households more confidence that cost-of-living pressures will abate.

As regards to the productivity challenge, the success of the Future Made in Australia initiative requires education, training, migration, industrial and fiscal policy to all combine constructively. If Australia can achieve this, then the prize may be significant.

Key contacts

The Budget is not a cash-splash budget. Equally, it is not a budget designed to consolidate the nation's fiscal position and commence the task of gradually returning the budget to a sustainable position.

The budget contains a range of explicit measures aligned with the philosophy of the Albanese Government, which pivots the economy towards one where government plays a greater role, places greater emphasis on manufacturing in Australia and relies less on overseas supply chains.

New government spending is not just targeted at the poorest and most vulnerable in society; significant expenditure is targeted at the business sector to provide energy cost relief, and investment to support the Future Made in Australia program.

The Budget contains a whole raft of measures that fit neatly into these three themes:

• tax relief for everyone, but additional tax relief for low-and-middle income earners who also received tax cuts in the earlier Stages 1 and 2.
• cost of living support in the form of energy bill relief of a $300 rebate received by every household; and an additional 10 percent increase in Commonwealth Rental Assistance for nearly 1 million households renting.
• the introduction of the nearly $23 billion Future Made in Australia program aimed at encouraging domestic private sector investment in the transformation required for the country to achieve net zero emissions.

The Treasurer has been at pains to explain that the Australian Bureau of Statistics has confirmed that energy bill relief cuts inflation too. This is technically correct – the rebate is provided to energy companies to reduce the revenue they need to recover from customers, and therefore energy bills are lower than they otherwise would be. However, the production costs associated with supplying energy are unchanged; it is just the price paid by customers through their energy bill is lower because of the rebate. Once the rebate is withdrawn the prices paid by households will rebound (assuming there has been no change in the production cost of electricity), and inflation will increase again.

In the Budget the Treasurer has been able to tell the public the story of two surpluses in 2 years. Unfortunately, the Treasurer's narrative is now expected to permanently change, with surpluses unlikely for the foreseeable future.

However, the Treasurer does not seem to be overly concerned about future surpluses given that there is nothing in the Budget addressing revenue or expenditure reforms. Either the philosophy revealed in this Budget incorporates the view that long-term structural budget deficits are not a problem (which goes against economic fundamentals), or the government is 'kicking the can' down the road. Alternatively, they may be hoping for productivity to re-emerge and help solve part of the problem.

Economic assumptions

We summarise the assumptions underlying the Budget in the tables below:

The Treasury forecasts suggest the Australian economy will remain weak over the forecast period and only start to return to rates of economic growth similar to long term averages in 2027-28. Real GDP is forecast to grow by 1.75 percent during the current 2023-24 financial year and then increase by 0.25 percent per annum over the following 3 years to achieve growth of 2.00 percent (2024-25), 2.25 percent (2025-26) and 2.50 percent (2026-27). The current weakness in the domestic economy is largely due to flat household consumption and falling dwelling investment, offset to some extent by strong public sector spending and solid private sector investment activity (although this is expected to weaken in the next few years). Net exports add positively to economic growth during 2023-24, although with the usual assumptions that the spot price of iron ore and metallurgical coal reverting to a long-term price target significantly below current levels, net exports are expected to detract from economic growth by 2025-26.

The inflation forecasts contained within the Budget show a pathway to a return to the target inflation band that is significantly different to the most recent forecasts presented by the RBA in their May 2024 Edition of the Statement of Monetary Policy. The government is suggesting that the Energy Price Relief Plan and the extension of the Commonwealth Rental Assistance payments will together directly reduce headline inflation by 0.50 percent in 2024-25. Further, the strong fall in inflation over the coming year is also due to the continued reduction in services inflation which has lagged the decline in goods inflation.

The labour market is forecast to weaken slightly over the forecast period with the unemployment rate pushing up to 4 percent by June 2024 and then stabilising at 4.5 percent for the following 2 years. This stabilisation in the labour market pushes down expected wages growth to low-to-mid 3 percent range over the forecast period. While weaker than nominal wage growth currently being achieved the concurrent fall in inflation means real wages growth strengthens from around 0.5 percent in the early years to 1.0 percent in the outer years.

What does it mean for you?

• The Albanese Government is taking a much more interventionist approach to economic development and government support for low, and stretching into middle, income households.
• Inflation forecasts are materially different to the latest RBA forecasts. If the government is wrong, then the implication is for the cash rate to stay higher for longer; which will in effect could result in higher mortgage payments that would more than offset any cost of living relief provided in the budget.

Key contact

What the Budget means for different demographics

Demographic group, 2024-2025 outlook.

What's in the budget?

• 1 July 2024 is the commencement date of the Stage 3 tax cuts and when individuals will start to see an increase in their take-home pay.
• $3.5 billion in energy bill relief from 1 July 2024, including a $300 rebate to all Australian households.
• $3 billion wiped from existing HECS-HELP debts via a capped rate increase each year, backdated to 1 June 2023.
• Increases of $180.3 million in ATO receipts and $44.3 million in ATO payments due to targeted tax compliance activities in areas of non-compliance by individuals, with key focus areas including short-term rental deductions.

Personal income tax rates

The Budget has confirmed the revisions to the Stage 3 tax cuts, noting that legislation enacting the changes received Royal Assent on 5 March 2024.

Notably, the new tax rates confirmed in March differ from the previous announcements reflecting the government's desire to target the tax cuts at low and middle income earners. Comparing to the previous announcements, the new tax rates retain the 5 marginal thresholds with the 19 percent tax rate reduced to 16 percent and the 32.5 percent tax rate reduced to 30 percent.

The government has sought to further address bracket creep by increasing the taxable income thresholds for the 37 percent and 45 percent rates.

The following table shows the tax savings arising for taxpayers following implementation of the revisions to the Stage 3 tax cuts.

Medicare levy and surcharge changes

The government has increased the Medicare levy surcharge low-income thresholds, effective from 1 July 2023, to reflect the increase in inflation. Individuals will see the impact of these changes when they lodge their 2024 income tax returns.

These legislative changes received Royal Assent on 5 March 2024 along with the revisions to the Stage 3 tax cuts.

Cost of living measures

A number of targeted cost of living measures were included in the Budget, including energy bill relief for all households via a $300 rebate on 2024-25 bills.

Changes to HECS/HELP indexation

Following last year's unprecedented increase of unpaid HECS-HELP debts by 7.1 percent on 1 June 2023, the Budget has confirmed that annual indexation will now be limited to the lower of either the Consumer Price Index (CPI) or the Wage Price Index (WPI).

This will be effective on a retrospective basis from 1 June 2023, resulting in an immediate impact on the current amount of debt that would be repayable.

Extension of the Personal Income Tax Compliance Program

The government's focus on addressing non-compliance by individual taxpayers was apparent in last year's Budget and features in this Budget as well. The ATO Personal Income Tax Compliance Program has been extended for 1 year, from 1 July 2027.

This will enable the ATO to deliver targeted proactive, preventative and corrective activities in key areas of non-compliance for individuals, including improper influence by tax agents. Additionally, the ATO will continue to focus on emerging areas of non-compliance, such as deductions relating to short-term rental properties to ensure they are genuinely available to rent.

• Increase in take home pay from July 2024 due to revisions to Stage 3 tax cuts.
• Cost of living relief via a $300 energy bill rebate for all households.
• HECS-HELP indexation on 1 June each year will be capped at the lower of CPI or WPI.

• Expansion of the foreign resident capital gains tax regime.
• Discontinuation of intangibles integrity measure.
• Penalties for mischaracterised or undervalued royalty payments.
• Amended start date of previously announced measure to expand the general anti-avoidance rule.
• New tax incentives including the Critical Minerals Production Tax Incentive and Hydrogen Production Tax Incentive.
• Extensions of the ATO Tax Avoidance Taskforce and the Shadow Economy Compliance Program.
• Amended start dates of previously announced measures to streamline excise and customs licensing.

Expansion of foreign resident capital gains tax regime

The government announced amendments to the foreign resident capital gains tax (CGT) regime for events on or after 1 July 2025 to:

• clarify and broaden the types of assets that foreign residents are subject to CGT on;
• amend the point-in-time principal asset test to a 365-day testing period; and
• require foreign residents disposing of shares and other membership interests exceeding $20 million in value to notify the ATO, prior to the transaction being executed.

The new notification seeks to improve oversight and compliance, where a vendor self-assesses their sale is not taxable real property.

It is worth noting that the government previously announced an increase to the foreign resident capital gains withholding tax rate from 12.5 percent to 15 percent, and a reduction to the withholding threshold from $750,000 to $0 for real property disposal contracts entered into from 1 January 2025. This measure is not yet legislated.

Discontinuation of intangibles integrity measure

The measure announced in the 2022-23 October Budget aimed at denying deductions for payments relating to intangibles held in low or no-tax jurisdictions will be discontinued, as the perceived integrity issue will now be addressed through the Pillar Two global and domestic minimum tax measures.

Mischaracterised or undervalued royalty payments

A new measure will be introduced from 1 July 2026 that applies a penalty to taxpayers who are part of a group with more than $1 billion in annual global turnover, that are found to have mischaracterised or undervalued royalty payments, to which royalty withholding tax would otherwise apply.

Deferral of expansion of general anti-avoidance rule

The government will amend the start date of the measure to expand the general anti-avoidance rule for income tax (Part IVA of the Income Tax Assessment Act 1936 ) to income years commencing on or after the day the amending legislation receives Royal Assent, regardless of whether the scheme was entered into before that date (this will effectively be a deferral from the original start date of 1 July 2024).

Businesses should seek advice and review any transactions they have entered into, or propose to enter into, to ensure that they have evidence that commercially supports the tax positions adopted.

Tax incentives

The government announced funding for priority industries. Two new tax incentives include:

• Critical Minerals Production Tax Incentive to support refining and processing of Australia's 31 critical minerals to improve supply chain resilience; and
• Hydrogen Production Tax Incentive to support the growth of a competitive renewable hydrogen industry.

Extending the Tax Avoidance Taskforce

The government will extend the ATO Tax Avoidance Taskforce for 2 years from 1 July 2026 to pursue key tax avoidance risks, with a focus on multinationals, large public and private businesses, and high-wealth individuals.

This measure is estimated to increase receipts by $2.4 billion over 5 years from 2023-24.

Extending the Shadow Economy Compliance Program

The government will extend the ATO Shadow Economy Compliance Program for 2 years from 1 July 2026, enabling the ATO to continue to reduce shadow economy activity, thereby protecting revenue and preventing non-compliant businesses from undercutting competition.

This measure is estimated to increase receipts by $1.9 billion over 5 years from 2023–24.

Streamlining of customs and excise

The commencement date of certain previously announced measures to streamline excise and customs licensing have been amended. Customs and excise licensing reforms are set to start the later of 1 July 2024 (original start date) or the day following Royal Assent.

Duty free treatment for commercial shipping bunker fuel will now commence from 1 January 2025 (instead of 1 July 2024), removing the need to pay duty and claiming a refund.

The exemption from general customs duty on goods produced in Ukraine has been extended to 3 July 2026, while the elimination of nuisance tariffs on imports of 457 products will commence from 1 July 2024.

• There continues to be a focus on multinational tax integrity, with a number of previously announced tax measures being adjusted, deferred or discontinued.
• The expansion of the foreign resident capital gains tax regime, and the requirement to notify the ATO of certain transactions prior to execution, is significant and may impact a number of cross border transactions.
• Funding for priority industries (critical minerals and renewable hydrogen) provided through tax incentives is a welcome, albeit very targeted, form of support for the energy transition sector.

• $2 billion new spending on strengthening tax compliance: the ATO will receive additional funding extensions for key compliance programs focusing on personal tax, the shadow economy, fraud and large business and high wealth individuals.
• The instant asset write-off for small business (turnover below $10 million) on eligible assets costing less than $20,000 will be extended to 30 June 2025.
• Mischaracterised or undervalued royalty payments: from 1 July 2026, a penalty regime will target taxpayer groups with annual turnover greater than $1 billion.
• Foreign resident capital gains tax (CGT) rules will be expanded for events on or after 1 July 2025, including to apply to a wider range of assets and to require pre-transaction ATO notification.

The extension of the instant asset write-off for small businesses (turnover less than $10 million) aims to boost cash flow and reduce tax compliance. This measure was previously extended in last year's Budget to 30 June 2024, with the implementing legislation currently before parliament.

The penalty measure for mischaracterised or undervalued royalties coincides with recent ATO activity in connection with the taxation of intangibles and royalties, including the release of public guidance.

The government announced it will discontinue the intangibles integrity measure, given the Australian implementation of BEPS 2.0 which is expected to address the integrity issues.

The strengthening of the foreign resident CGT regime is intended to ensure foreign residents pay their fair share of tax and to provide greater certainty about the operation of the rules

• Businesses should continue to focus on developing their tax governance frameworks in light of the additional tax compliance funding for the ATO and international groups should review transfer pricing arrangements.
• Foreign residents should be aware of the proposed CGT measures and monitor the impact on their investments.
• Small business should take advantage of the extended instant asset write off.

• $7 billion over eleven years Critical Minerals Production Tax Incentive (CMPTI) to support downstream refining and processing and improve supply chain resilience.
• $6.7 billion over ten years for a Hydrogen Production Tax Incentive (HPTI) to support the growth of a competitive hydrogen industry and Australia's decarbonisation.
• $1.7 billion over ten years for the Future Made in Australia (FMiA) Innovation Fund administered by ARENA to support innovation, commercialisation, pilot and demonstration projects in priority clean technology sectors.
• $1.4 billion over eleven years for solar and battery manufacturing and supply chain resilience, administered by ARENA as part of FMiA.
• $1.4 billion over thirteen years for medical research and translation through the Medical Research Future Fund.
• $519.1 million over 8 years for the Future Drought Fund for initiatives that provide improved support to farmers and communities to manage drought and adapt to climate change.
• $107 million over 5 years support package for sheep producers ahead of the phasing out of live sheep exports.

The Budget seeks to refocus government spending to enhance manufacturing capability in renewables and its supply chain to maximise the economic and industrial benefits of the net zero transformation.

The headline announcement, the Future Made in Australia (FMiA) package, includes significant investment in the private sector through the FMiA Innovation Fund, complemented by further funding to enable the manufacturing of clean energy technology.

A National Interest Framework will be used to identify sectors that can contribute to net zero or are critical to Australia's economic security and resilience.

After consultation, the FMiA package will include the CMPTI and HPTI; in addition to extra funding for the Hydrogen Headstart Program. Currently, the HPTI is proposed to provide a $2 per kilogram incentive; while the CMPTI is proposed at 10% of processing and refining costs 1 ; both of which are proposed across 2027-28 to 2040-41.

The Budget has outlined the Government's position on building the resilience of regional Australia and its agricultural industries. Notable measures include support for farmers and regional communities to continue to build drought resilience through a refocussing and prioritisation of the Future Drought Fund's climate change, resilience, and adaptation activities. In addition, funding is available to support the live export sheep industry with transition funding, market scoping, animal welfare activities and industry engagement - the industry will be closed down on 1 May 2028.

There is also a commitment to extend the Roads to Recovery program, with an additional $1 billion of funding to ensure the ongoing efficiency and competitiveness of Australia's regional industries in getting products to market.

1 “Investing in the Future Made in Australia", Prime Minister of Australia, https://www.pm.gov.au/media/investing-future-made-australia.

• Additional funding and tax incentives to support critical minerals and clean technology.
• Regional Australia will benefit from investment in regional infrastructure and large-scale capital projects.
• No changes to existing tax incentives (i.e. R&D Tax Incentive) will be a relief for many.

• $1.1 billion over 4 years, as previously announced on 7 March 2024, the government will pay superannuation on Commonwealth government-funded paid parental leave for births and adoptions on or after 1 July 2025.
• $167.8 million will go towards implementing reforms to strengthen Australia's Anti-Money Laundering and Counter-Terrorism Financing legislation.
• $17.3 million over 4 years to promote the development of sustainable finance.
• $7.5 million over 4 years to modernise regulatory frameworks for financial services to improve competition and consumer protections for services enabled by new technology.

Paying superannuation on Commonwealth paid parental leave is a welcome initiative that KPMG has long advocated for and is an important step towards closing the super gender equity gap. This ensures that people on parental leave don't miss the opportunity to have super contributions made which is otherwise a contributor to the gender equity gap that we see in superannuation balance entitlements.

The government has also announced funding to strengthen and modernise certain aspects of Australia's financial system. This includes implementing reforms to strengthen Australia's Anti-Money Laundering and Counter-Terrorism Financing legislation in order to enhance Australia's ability to detect and disrupt illicit financing.

The government will also provide funding to promote the development of sustainable finance. The majority of this funding will go toward the following measures:

• $10 million over 4 years towards targeting greenwashing and other sustainability-related financial misconduct;
• $5.3 million over 4 years for additional funding to Treasury, the Australian Securities and Investments Commission (ASIC) and the Australia Prudential Regulation Authority (APRA) to deliver a sustainable finance framework (including issuing green bonds, improving data and engaging in the development of international regulatory regimes related to sustainable finance).

The government will also modernise regulatory frameworks for financial services to improve competition and consumer protections for services enabled by new technology. This will involve:

• the development of new legislation to licence and regulate platforms that hold digital assets (and progress related reforms); and
• introducing a new regulatory framework for payment service providers.

Although not announced in the Budget, the following key superannuation threshold changes take effect from 1 July 2024.

• Greater regulation designed to ensure appropriate customer protections exist for emerging technologies and an appropriate framework exists for sustainable investing.
• Individuals will be able to contribute more to their super, either by way of deductible personal contributions (concessional contributions) or from after-tax savings or inheritances (non-concessional contributions).

• Net overseas migration is forecast to decrease from 528,000 in 2022–23 to 260,000 in 2024–25 .
• $3 billion to reduce student debt, including HELP, VET Student Loan, Australian Apprenticeship Support loans.
• $9.9 billion over 4 years to fund the National Skills Agreement.
• $218.4 million over 8 years to develop workforce and trade partnerships as part of Future Made in Australia.
• $1.4 billion through to 2028-29 for new fee-free Uni Ready Courses from 1 January 2025.
• Permanent Migration Program planning levels to be set at 185,000 places with 132,200 (70%) places allocated to the Skilled stream.

Tertiary Education

Linked to changes in net migration, the government is introducing caps on international student numbers, with new requirements on tertiary providers to ensure sufficient student housing. Little detail is available in the budget papers as to how these changes will work in practice.

Linked to the Commonwealth's response to the Universities Accord, cost of living measures will be applied to both Higher Education and VET students, changing the indexation arrangements for student loans, with significant retrospective ($3 billion) and forward measures ($1.3 billion to 2028-29).

Both Higher Education and VET students will also benefit from new means tested Commonwealth Prac Payments from 1 July 2025 for mandatory placements as part of their nursing (including midwifery), teaching or social work studies, costed at approximately $1.6 billion through to 2028-29.

The total Commonwealth Universities Accord response is costed at $3.8 billion to 2028-29. The reforms are intended to 'boost equity and access to higher education, progress tertiary harmonisation and will support a target of 80 percent of the working age population holding a tertiary qualification by 2050.' Additionally, there is also $350.3 million over 4 years from 2024–25 for fee-free Uni Ready Courses.

Further important measures that attract nominal funding include:

• A medical school for Charles Darwin University
• The creation of a National Student Ombudsman
• Mechanisms to introduce a National Higher Education Code to Prevent and Respond to Gender-based Violence
• The establishment of the Australian Tertiary Education Commission, by 1 July 2025
• Managed growth and new approaches to needs-based funding from 1 January 2026
• A strategic review of Australia's research and development system to drive innovation in priority areas.

This budget also includes funding for the National Skills Agreement, with most of the funding supporting free TAFE places.

There is an additional $265.1 million over 4 years for apprentices in priority occupations to tide the sector over until the Strategic Review into the Australian Apprenticeship Incentive Program is completed.

Early Childhood

The government has committed to provide funding towards a wage increase for early childhood educators, with details to be released following the finalisation of the Fair Work Commission's review.

The government has also identified significant ($410 million) savings through strengthening the payment and accuracy of the Child Care Subsidy program.

Key migration announcements include:

• 33,000 places in the Permanent Migration Program planning levels will be allocated for permanent Regional visas reflecting the Government's commitment to supporting regional development and growth
• The work experience requirement for the Temporary Skill Shortage (Subclass 482) visa will be reduced from 2 years to 1 year, effective November 2024.
• The Government will provide $100 million in 2024–25 to the Department of Home Affairs to support Australian Border Force operations and immigration compliance activities. A further $1.9 million will be invested in a data matching pilot between the Australian Taxation Office and the Department of Home Affairs focussing on income and employment data.
• National Innovation visa (to replace current Global Talent visa (subclass 858) from late 2024. This visa will target exceptionally talented migrants who will drive growth in sectors of national importance; and
• Mobility Arrangement for Talented Early-professionals Scheme (MATES) program for Indian nationals from 1 November 2024.
• The Business Innovation and Investment visa program (BIIP) will end. Visa application charges will be refunded from September 2024 to those who wish to withdraw their BIIP application.
• This Budget directly links the policy settings for tertiary education and migration to Australia's future economic and social prosperity in ways we have not seen before.
• There is significant skills funding to enable Australia's sovereign capability and growth ambitions as part of the 'Future Made in Australia' initiative.
• A new cap on international students with associated housing requirements lacks detail and is likely to have significant impacts on the tertiary education sector.
• The Government's commitment to provide funding towards a wage increase for early childhood educators is a step towards addressing the significant current and projected workforce challenges within the sector. However, for the early childhood sector, this appears to largely be a holding budget pending recommendations from the Productivity Commission's Early Childhood Education and Care Inquiry.
• Changes to the migration program reflect the government's intention to target a mix of skills in high priority areas to drive productivity and growth.
• The Government has identified investments that reinforce integrity in Australia's migration program and will reduce net overseas migration.

• Hydrogen Production Tax Incentive of $6.7 billion over ten years and additional funding for the Hydrogen Headstart program of $1.3 billion over ten years.
• Critical Minerals Production Tax Incentive of $7.1 billion from 2027-28 to 2040-41 to support refining and processing of Australia's critical minerals.
• Clean energy and manufacturing innovation funding of $3.2 billion over 7 years and support for manufacturing solar, batteries and other technologies of $1.4 billion over eleven years.
• Strengthening approvals processes for clean energy investments, and improved community engagement with funding of $182.7 million over 8 years.
• Support to ensure communities and workforces benefit from energy transformation and the clean energy economy with $399.1 million provided over 5 years for the Net Zero Economy Authority and other agencies, while clean workforce training support of $91 million is provided over 5 years.
• The Australian Carbon Credit Unit (ACCU) scheme is being strengthened with $48 million provided over 4 years.
• Energy Bill Relief is being extended in the Budget with $3.5 billion over 2 years to provide rebates to all Australian households and to eligible small businesses.

The Future Made in Australia – Making Australia a Renewable Energy Superpower package includes $19.7 billion over ten years from 2024-25 to support investment in renewable hydrogen, green metals, low carbon fuels, critical minerals and supporting clean energy manufacturing.

The Budget includes two major tax credits that provide long term production support. The Hydrogen Production Tax Incentive will provide a $2 incentive per kilogram of renewable hydrogen produced for up to ten years per project, between 2027-28 and 2039-40, and will operate alongside the expanded Hydrogen Headstart program (which is also extended by $1.3 billion over the next ten years). The Critical Minerals Production Tax Incentive will provide a production incentive at 10 percent of relevant processing and refining costs for Australia's 31 critical minerals for up to ten years per project between 2027–28 and 2039–40.

The Future Made in Australia initiative also includes significant new funding for the Australian Renewable Energy Agency, including:

• $1.5 billion over 7 years from 2027–28 to support investments in clean energy technologies.
• $1.7 billion over 7 years from 2024-25 for the Future Made in Australia Innovation Fund to support innovation in green metals and low emissions fuels.
• $1.4 billion over eleven years from 2023-24 to support manufacturing of clean energy technologies, including $835.6 million to establish the Solar Sunshot program and $523.2 million to establish the Battery Breakthrough Initiative.

Further support for green hydrogen includes $17.1 million for the yet-to-be-released 2024 National Hydrogen Strategy and an additional $11.4 million over 4 years to fast-track the initial phase of the Guarantee of Origin Scheme for green hydrogen and bring forward work on green metals.

The Budget seeks to strengthen environmental approvals for renewable energy, transmission, and critical minerals projects with $96.6 million over 4 years from 2023–24. An additional $20.7 million over 7 years seeks to improve community engagement and social licence outcomes through the Australian Energy Infrastructure Commissioner and the development of voluntary national standards and reforms.

The ACCU Scheme is being strengthened, with $48 million in funding over 4 years aimed at progressing new methods, strengthening integrity, providing transparency and supporting new market arrangements. This will assist in the supply of high-quality units into the market including to Safeguard Mechanism facilities.

The Net Zero Economy Authority, the Department of Employment and Workplace Relations and the Fair Work Commission will receive $399.1 million over 5 years from 2023-24 (and ongoing) in additional resourcing to ensure Australia, its regions and workers realise the benefits of the net zero economy.

Clean energy workforce support of $91.0 million over 5 years from 2023–24 will be provided to address vocational education and training sector trainer workforce shortages, and fund training facility upgrades for clean energy occupations.

Funding to combat greenwashing and support the development of a sustainable finance sector including green bonds has been provided ($17.3 million over 4 years).

The Nature Positive agenda will be advanced with an additional $40.9 million over 2 years starting with aims to improve environmental outcomes while benefiting business. Funding for circular economy policy of $23.0 million has been provided for 2024–25, maintaining ongoing initiatives while a national circular economy framework is developed.

• Projects producing Green Hydrogen and processing critical minerals will attract grants, concessional finance and long term rebates, and funding for innovation in renewable energy, green metals and clean technology will be significantly increased.
• Approval processes for green projects will be streamlined, and markets for sustainable finance deepened.
• Resources will be invested in improving community engagement and outcomes.
• Households and small businesses will have energy bill relief from 1 July 2024.

New priority transport infrastructure investments worth $4.1 billion over 7 years, including:

• $1.9 billion for projects in Western Sydney, including $500 million for the Mamre Road Stage 2 upgrade and $400 million for Elizabeth Drive.
• $300 million for the METRONET High-Capacity Signalling Program in Western Australia.
• $134.5 million for the Mt Crosby Road Interchange Upgrade in Queensland.
• $120 million for the Mount Barker and Verdun Interchange upgrades in South Australia.
• $115 million for Zero Emission Buses Tranche 1 Infrastructure – Macquarie Park Depot in New South Wales.
• $540 million for the Australian Rail Track Corporation to invest in the interstate rail network, including $150 million for the Maroona to Portland Line upgrade.

The Budget maintains the discipline following the government's independent review in 2023, of the $120 billion road and rail investment program.

The Budget also includes $10.1 billion for existing projects over the next eleven years, including selected projects highlighted in the following table. The Budget notes that $2.1 billion of infrastructure has been reprofiled to beyond the forward estimates given market conditions.

Spending by key existing infrastructure

• Direct Sunshine Coast Rail Line $1,200.0M
• Coomera Connector Stage 1 $431.7M
• Victoria (North East Link $3,300.0M)
• Western Australia (METRONET $1,400.0M)
• New South Wales $578.6M  (including M1 Pacific Motorway (Raymond Tce) $112.0M)
• South Australia $133.6M  (including South Eastern Freeway upgrade $100.0M)
• Tasmania $113.1M  (including Mornington Roundabout Upgrade $50.0M)
• Northern Territory $35.9M  (including Carpentaria Highway upgrade $25.0M)
• Australian Capital Territory  (William Hovell Drive Duplication $27.1M)
• The Australian Government has reconfirmed the $120 billion pipeline of investment to improve road and rail infrastructure. This pipeline of projects will improve transport and freight efficiency outcomes across Australia.
• Rail freight will be improved by a $540 million investment into the Australian Rail Track (ARTC) interstate rail network.

• $1 billion provided through a new Housing Support Program to fund essential infrastructure with states and territories to support delivery of new housing.
• $423.1 million in new funding (subject to states and territory signing) for a new 5-year National Agreement on Social Housing and Homelessness – to combat homelessness, provide crisis support and build and repair social housing.
• $1.9 billion over 5 years to fund a 10% uplift in Commonwealth Rent Assistance rates to help address rental affordability.
• $1.9 billion in concessional finance to community housing providers for new affordable and social housing (as part of the Housing Australia Future Fund).
• $88.8 million over 3 years for 20,000 new fee-free training programs to boost the number of construction workers.
• $120 million over 3 years to support additional remote housing and deliver urgent repairs to social housing in the Northern Territory.

This Budget continues the government's renewed focus on partnering with states and territories and the community housing sector to deliver more housing for Australians.

The community housing sector will welcome the commitments to increase concessional finance, alongside the current Housing Australia Future Fund, to support the delivery of new affordable and social housing.

The 10% increase in the Commonwealth Rent Assistance also adds breadth to the policy measures being implemented to address rental affordability for low-income households. This also supports the capacity of the community housing sector to invest in new housing.

The Budget confirms that Commonwealth and state and territory governments have now reached agreement in principle on a new National Agreement on Social Housing and Homelessness, which includes additional funding of $423.1 million over 5 years, matched by states and territories.

Additional specific funding has been allocated for the Northern Territory Government to deliver urgent repairs to existing housing and support investment to reduce overcrowding in remote communities.

• Enhancements to Housing Australia's borrowing capacity plus a commitment to provide concessional loans to Community Housing Providers as part of the Housing Australia Future Fund.
• State and territory governments will be able to access additional funding and concessional finance helping accelerate the delivery of infrastructure to support new, and the renewal of existing, housing estates.

• $1.2 billion over 5 years towards strengthening Medicare measures, in addition to a commitment of $227.0 million over 3 years to expand Medicare Urgent Care Clinics.
• $1.4 billion over thirteen years towards the Medical Research Future Fund to support medical research in Australia.
• $888.1 million over 8 years to strengthen Australia's mental health and suicide prevention system.
• $3.4 billion over 5 years for new and amended listings on the Pharmaceutical Benefits Scheme (PBS) and Repatriation PBS.
• $480.2 million over 5 years to reduce patient costs and improve access to medicines.
• $110.9 million to strengthen regulation of aged care.
• $531.4 million to release 24,100 additional home care packages.

The Budget is focused on delivering against the government's reform agenda in health and aged care. This includes continued initiatives to strengthen Medicare.

System sustainability is a priority, with $1.4 billion over thirteen years focused on translating research to clinical practice and reducing health inequities.

The government has allocated $361.0 million over the next 4 years to expand free mental health services available under Medicare, including the establishment of a nationwide early intervention digital mental health service.

In line with broader cost of living measures, $318.0 million has been committed over 5 years to freeze the cost of medicines, along with $3.4 billion over 5 years for new and amended listings on the PBS.

The role of the Aged Care Quality and Safety Commission in ensuring the safety and quality of older Australians is recognised, with a commitment of $110.9 million over 4 years to strengthen regulation in aged care.

The government has committed $531.4 million to release an additional 24,100 home care packages to address the 51,044 people in the National Priority System waiting for a home care package. Unspent funds from the Commonwealth Home Support Programme will be directed to other aged care programs.

The government has announced the new Aged Care Act effective from 1 July 2025.

• The Australian community will see improved access to multi-disciplinary primary healthcare services and enhanced quality of care through sustained investment in Medicare, Urgent Care Clinics and public hospitals.
• Older Australians will be supported to remain at home, whilst aged care quality and safety will be strengthened.

• $925.2 million over 5 years to permanently implement the Leaving Violence Program, which will provide victim-survivors access to up to $5,000 in financial support, as well as up to 12 weeks of safety planning and referral supports.
• $2.8 billion over 5 years for Services Australia, including $1.8 billion for additional staff to address the backlog of claims and improve service standards.
• $468.7 million over 5 years to support people with disability and “get the NDIS back on track”, following the NDIS Review.
• $227.6 million over 5 years to implement a new specialist disability employment program.
• $59.8 million over 5 years for improvements to the application of income support payments, including jobseekers and carers.

The vast majority of the significant investment to address gender-based violence is focused on responding to violence and supporting women in crisis. However, substantive funding is not provided in the Budget against the other National Plan domains of 'prevention', 'early intervention' and 'recovery and healing' which could be seen as gaps in a systemic response.

In addition to the funding commitment to the Leaving Violence Program, $1 billion has also been directed towards crisis and transitional accommodation for women and children fleeing domestic violence, and youth under the National Housing Infrastructure Facility.

While we await the government's formal response to the NDIS Review and Disability Royal Commission's recommendations, there are some initial measures in the Budget, including continuing the crackdown on fraud and improving participant safety.

There are new measures provided in response to some of the pre-budget recommendations of the Economic Inclusion Advisory Committee. These will increase payments for some jobseekers and carers, however broader reforms to income support payment rates have not featured in the Budget, other than increases to Commonwealth Rent Assistance.

Services Australia has also received significant funding to address its claims backlog, and improved service standards for individuals who have touch points with the agency.

• State and territory governments will need to consider how their funded programs will align to or benefit from the extension to the Leaving Violence program.
• There is still a 'watch and wait' brief for people with disability and service providers for the government's substantive response to key recommendations from the NDIS Review and Disability Royal Commission.

• $11.1 billion over ten years to deliver the government's response to accelerate the delivery of the Royal Australian Navy's surface combatant fleet and expand Australia's shipbuilding industry.
• $1 billion in additional funding over the next 3 years to accelerate priority investments in long-range strike capabilities, theatre logistics, fuel resilience and robotic and autonomous systems.
• $38.2 billion over 7 years from 2027-28 in supplementary funding to support the new capabilities within the 2024 Integrated Investment Program .
• $72.8 billion of existing funding has been reprioritised to support accelerated delivery of critical capability for the ADF.
• $17.5 million over ten years to establish a new Parliamentary Joint Committee on Defence.

In an historic funding boost, the government is investing an additional $5.7 billion over the next 4 years to uplift Defence's capabilities and to deliver the 2024 National Defence Strategy (NDS) and 2024 Integrated Investment Program (IIP).

The government will strengthen defence industry capability with a $101.8 million investment over 7 years to support the creation of the workforce needed to deliver and sustain the nuclear-powered submarines.

The government has allocated $165.7 million over 5 years to help industry scale up to support and deliver on the sovereign industrial priorities in line with the Defence Industry Development Strategy .

Veterans and their families will benefit from additional resources for frontline support to prioritise processing of claims; and the government will also provide $222 million to create simpler systems so veterans and their families can more easily get the support they are entitled to.

Defence will look to initiate a pilot program (Australian Defence Consulting) to provide internal consultancy support across Defence.

• Speed to capability continues to be the priority focus for Defence capability acquisition and defence industries will benefit from additional funding to strengthen the sovereign defence industrial base.
• Workforce is also one of the six immediate priorities for Defence, improving the growth and retention of the highly skilled workforce needed.

• $505.9 million to deepen Australia's engagement with Southeast Asia.
• $206.4 million on Cyber Security of Regulators and Improving Registers.
• $168 million for the Australian Transaction Reports and Analysis Centre (AUSTRAC) to expand capabilities and provide guidance to new regulated entities.
• $161.3 million over 4 years to deliver the National Firearms Register and support extensive reform of the national firearms management system.
• $43.1 million over 4 years, 2024–25 (and $3.6 million per year ongoing) to improve justice outcomes for First Nations individuals and families.

The Budget strengthens the foundations of Australia's security with investment in regulatory and data information sharing amongst law enforcement agencies domestically, positioning Australia as partner of choice for Southeast Asian countries.

This announcement creates opportunities for business, realising recommendations from the Federal Government's response to Invested: Australia's Southeast Asia Economic Strategy to 2040.

The funding to AUSTRAC supports the implementation of the next tranche of anti-money laundering and counter terrorism financing reforms, enhancing Australia's ability to detect and disrupt illicit financing.

Cooperation between the Commonwealth and States and Territories is central to the commitment of $161.3 million for a National Firearms Register, delivering improvements to community and police officer safety.

Funding for the cyber wardens program, small business cyber resilience service, cyber health check programs and a ransomware playbook will be welcomed by business while waiting for follow on measures from the 2023-2030 Australian Cyber Security Strategy.

• Increased efforts to fight scams and protect your identity online.
• More opportunities for infrastructure partnerships, technology exports and startups in Southeast Asia.
• More connected and data-led law enforcement and regulatory community.

Download: Federal Budget 2024 analysis

A review of the Budget’s major business implications

Video: KPMG 2024 Federal Budget virtual event

Listen: tax now 2024 federal budget podcast.

KPMG partners Gabby Burcul and Clive Bird explore the various measures announced in the Australian Government’s 2024 Budget, particularly the tax implications for business.

Federal Budget FAQs

The government has previously said that they have no intention of changing negative gearing, therefore making it unlikely in this term of parliament. A future parliament may consider changes to negative gearing, though previous efforts to change it have been unsuccessful.

The Treasurer has referred to the Australian Bureau of Statistics’ confirmation that energy bill relief cuts inflation. This is technically correct – the rebate is provided to energy companies to reduce the revenue they need to recover from customers, and therefore energy bills are lower than they otherwise would be. This puts downward pressure on the Consumer Price Index.

The introduction of the nearly $23 billion Future Made in Australia program is aimed at encouraging domestic private sector investment to boost our manufacturing and clean energy capabilities. This represents a change in economic strategy from previous governments. The government maintains that it is necessary for the country to achieve net zero emissions, safeguard our supply chains and create the jobs of the future.

Treasury forecasts show inflation dropping to 2.75 percent by the end of the year, with a further drop to 2.5 percent by the end of 2025. This would place inflation in the target band below 3 percent almost one year earlier than forecast by the Reserve Bank of Australia. The RBA has previously flagged that they would be looking closely at the Budget and its impact on their inflation forecasts. RBA Governor Michele Bullock has said that the RBA cannot rule out another interest hike.

The Budget does not include cost of living relief by way of a reduction in the fuel excise. It does include, however, $8.4 billion in cost of living relief across increased rent assistance, power bill relief and cheaper medicines. This is alongside a number of other measures, including tax cuts for all Australians.

The extension of the instant asset write-off for small businesses (turnover less than $10 million) aims to encourage businesses to invest in more capital resources, as well as boost cash flow and reduce tax compliance. This measure was previously extended in last year’s Budget to 30 June 2024, with the implementing legislation currently before parliament.

As previously announced on 7 March 2024, the government will pay superannuation on Commonwealth government-funded paid parental leave for births and adoptions on or after 1 July 2025. This comes at a cost of $1.1 billion over 4 years.

Meet KPMG’s Federal Budget 2024 team

Pre-budget analysis for the mid-market.

KPMG's survey of 100 leaders of mid-tier Australian businesses has revealed a mood of cautious optimism.

Prior to the 2024 Australian Federal budget, KPMG surveyed private, mid-market and family businesses to gauge economic sentiment and budget concerns.

2024 Federal Budget: Pre-budget survey of private, mid-market and family businesses.