Former PM John Howard slams Scott Morrison over bank tax

But she said "the banking levy effectively represents double-taxation of some of Australia's most successful companies, which already pay $11 billion in company tax each year".

The Prime Minister has been forced to defend the surprise welfare measures after he warned Australia's financial sector not to pass on the costs of a new tax on banks to customers.

On Thursday night, federal senator Derryn Hinch outlined details of a letter he wrote to the AFP asking for an investigation.

"It's a comprehensive plan, it's not a silver bullet - nor is it meant to be", Morrison said in his budget lockup press conference.

The extra funding will be paid for by a $2.8 billion hit to universities over the next two years.

Bligh said there were three groups of stakeholders who would end up bearing the cost of the levy - borrowers, depositors or shareholders.

"The budget is about making the right choices to secure the better days ahead", Morrison said in sticking to his promise to return a surplus by 2021/22 from a projected 2017/18 deficit of 29.4 billion Australian dollars.

"This budget will be committed to fairness, opportunity and security, ensuring that Australians are given the opportunity to get ahead, the economic growth that enables them to get ahead, to get a better job, a better-paying job, to start a business, grow a business, to realize their dreams", Turnbull told reporters.

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.

"This represents an additional and fair contribution from our major banks, is similar to measures imposed in other advanced countries, and will even up the playing field for smaller banks", Mr Morrison said.

A fee subsidy for New Zealanders is also to be ended.

Labor has not ruled out supporting the increase, although Opposition Leader Bill Shorten said he was not convinced it was the only way for the government to fund the NDIS.

In 2010, under former Prime Minister Kevin Rudd, the Labor government introduced a new mining tax on big mining profits and faced an industry backlash which included anti-government television commercials.

The levy will raise $6.2 billion over four years but has been slammed as a "very bad idea" by David Murray, the head of the Government's financial system inquiry.

The Commonwealth will scrap the National Affordable Housing Agreement but will still provide $1.3 billion to the states and territories under new arrangements to boost the stock of affordable housing. The inland rail line, to receive A$8.4 billion in funding, will run from Melbourne to Brisbane, spanning 1,700km, and will help farmers to move produce and exports. The airport is expected to create 60,000 jobs in the long term and is projected to be complete by 2026.

Western Sydney airport will get $5.3 billion over the next ten years.

"Third, Snowy Hydro would have to remain in public hands".

  • Zachary Reyes