Australian Treasurer Unveils Near Universally Popular Budget Measure
- Author: Zachary Reyes May 18, 2017,
May 18, 2017, 12:15
But there's no serious, and hard, reform in this budget.
The 2017 Budget also seeks to entirely recover from Labor's Mediscare campaign that almost cost the Coalition the election while tackling the Opposition's main arguments on schools' funding, training and a calls for a Royal Commission into the banks.
"The ABA believes releasing the analysis we have requested today is one small step to ensuring we can limit the unintended consequences and economic harm to Australians of what is clearly a hastily designed tax", Ms Bligh, a former Queenlsand Labor premier, said in her letter.
While Morrison has cautioned the banks that their customers "already don't like them", telling them to "prove (the customers) wrong and pony up to help fix the budget", bankers have warned the government that it was likely that the levy will be passed onto customers.
The Treasurer said there were signs of an improving global economy and "there is clearly the potential for better days ahead".
"Our decision to increase the levy reflects the fact that all Australians have a role to play", Mr Morrison said.
He said that it now appeared "no-one now is talking about paying back debt".
"I know this has put real pressure on Australians and on their families".
"This is the fair policy for Australians and this is what we are doing".
"The banking sector here is very profitable".
"There is no rhyme or reason to the bank tax, it is not a deposit guarantee scheme".
Labor said the government's "package of half measures" was no substitute for a royal commission.
The Australian Bankers Association described the new tax as "inherently risky", blaming speculation that the measure might be included the budget for banks losing AU$14 billion ($10 billion) in value on the Australian stock market earlier Tuesday.
Until now, employers have contributed one to two per cent of their payroll to training if they employ foreign workers and these requirements have been hard to police, Morrison said.
This means it will impact only the four major banks, as well as Macquarie Bank, and is expected to raise more than $6 billion. It's a future where the government will drive economic growth, austerity has been replaced by spending, and taxpayers and banks will foot the bill.
There's also $10b for rail projects.
The conservative government of Prime Minister Malcolm Turnbull has blamed a lack of supply for sky-rocketing house prices and on Tuesday announced setting up a A$1 billion National Housing Infrastructure Facility to help develop new homes.
The Federal deficit will fall to a surplus to $7.4 billion in 2020-2021 from $29.4 billion in 2017-18 and $37.6 billion in 2016-17.
The government will impose a 0.5 per cent rise in the Medicare Levy in two years' time to fully fund the $6 billion gap in the NDIS funding. It's a sign of how much damage the Labor campaign on health and Medicare did to the Coalition.
"Over the four years to 2019-20, this is an overall improvement in the figuring from MYEFO of $4.0 billion - all of which comes in 2019-20", the report said. As a protection measure for investors, however, the government will provide direct deduction of rent from welfare payments of tenants in public and community housing providers.