Income tax cuts when we can: Morrison

Labor seized on the more than $15 billion, one-year rise, in the cost of the tax cut in Parliament and hammered the government.

They were never going to be passed by the Senate but their existence made the Budget bottom line look better than it actually was.

Under the updated figures, the cost of unlegislated tax cuts for companies with a turnover of more than $50 million for 10 years from 2017-18 is $35.6 billion.

The rise in the cost of the tax cut to $65 billion is because of the addition of a new "10th" year, 2027-28, to the 10-year forecast in which the full company tax cut - from 30 to 25 per cent - would be in place for all companies, if the government can pass the required laws.

"We call on the Labor Party to support it, and we call on Bill Shorten to be consistent. only a few years ago, he said that anyone who did not support an increase in the Medicare levy by half a per cent. during the Gillard Government, to go towards funding the NDIS, was dumb", the Prime Minister said.

A 6.2 billion AU dollar (4.56 billion US dollar) levy on the big banks, new taxes aimed at foreign investors who purchase Australian property and tax breaks for both small businesses and first-home buyers were the highlights of Morrison's address to Parliament overnight, in a package Prime Minister Malcolm Turnbull described as "fair on every level". Work on both projects is to begin in the fiscal year which starts July 1.

Morrison has defended the measure in his post-Budget interviews.

"In requiring big banks to give consumers greater control over their own data, the government has stood up to the banking sector lobbyists and shown it's serious about boosting competition in financial services in Australia".

The new levy will affect Australia's four big pillar banks and investment bank Macquarie.

On banking, the government introduced a major levy of 6 basis points on banks with liabilities above AUD100 billion.

"This new tax is not a well thought-out policy response to a public interest issue, it is a political tax grab to cover a budget black hole".

Morrison said the government will establish a A$1 billion National Housing Infrastructure Facility and allow first time home buyers to save extra funds into their pension accounts to use for a purchase deposit.

According to Bligh, banks are the largest corporate taxpayers in Australia.

Szetho says that Fintech Australia would be working closely with other start-up industry groups to "assess the potential impacts of the government's announced new levies on businesses which employ skilled migrants". Another A$4 billion will come from taxes on multinationals as the government expands its anti-tax avoidance laws to include trusts and foreign partnerships.

Treasury forecasts of budget surpluses - in fact, Treasury forecasts generally - have proven to be speculative at best. That compares with the RBA's estimates of 2.75 to 3.75% by mid-2018 through to June 2019. Unemployment is expected to stay steady at 5.75 percent.

Graduates on low incomes are set to be slugged with an extra $1000 a year in tax as the Turnbull government's changes to the repayment of university fees and an increase in the Medicare levy combine to hit those earning well below the average wage.

  • Leroy Wright