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To offset these goodies, the Medicare levy will be increased in two years to help fund the national disability insurance scheme while the big banks face a new levy to help fix the budget. "Banks will also be held to account if they try and hide misconduct by executives with new mandatory reporting requirements".

It is squarely directed at trying to undo continuing damage from the harsh Abbott government 2014 budget.

"It's a responsible budget", he told the Coalition party room.

A Medicare Guarantee Fund will be established to pay for all expenses of the Medicare Benefits Schedule and the Pharmaceutical Benefits Scheme (PBS).

The extra Medicare levy revenue will be directed into a new fund, which will be used to fund the National Disability Insurance Scheme (NDIS).

The banks have already started to fight back, warning that borrowers and shareholders could be forced to pay the cost of the tax, which could be passed on to customers.

It comes into effect on July 1. This would be on top of people's existing super contributions.

"Measures to offset may be asset or liability price adjustments but an intended review into competition in the banking system will make the task of recovering the cost of this levy incrementally more challenging".

While capital gains tax and negative gearing remains unchanged for Australians, foreign investors will have their capital gains tax withholding rate raised from 10% to 12.5% from July 1 this year, and the CGT withholding threshold will be reduced from $2 million to $750,000.

Mr Morrison insists the government has arrested the growth in debt by more than two-thirds since coming to power in 2013, but will still top half a trillion dollars before June 30.

"There is clearly the potential for better days ahead". This is regarded by many economists as very optimistic.

He would not say whether he would retain last year's target of returning the budget to surplus in 2020-21.

First home buyers, downsizers and renters can expect some help from the 2017 budget.

Budget 2017-18 - Will it lead to more affordable housing? It will provide A$8.4 billion in equity into the planned Melbourne-Brisbane inland rail project.

The government is also planning to impose a 50% on foreign ownership in new property developments, which the government sees as a way of "increasing the housing stock for Australian purchasers".

He's also urged bankers not to pass on the levy to customers.

"Levies like this are common right around the world", Mr Turnbull said.

He argues new measures to get tough on bank behaviour will kick in immediately, which is a bid to blunt the sharpness of Labor's push for a royal commission.

"The banking industry was completely blind-sided by this, which shows how much influence they have in Canberra and how tapped in they are in Canberra", he said.

Welfare recipients have again been in the government's sights.

  • Leroy Wright