Australia treasurer promises fair budget that reins in debt
May 12 2017 by Joshua Bennett
Outside of infrastructure, the government has promised to greatly lift expenditure on health and education.
There'll be an extra $115 million for mental health and an extra $1.4 billion for health research, including $65.9 million specifically for research into childhood cancers.
"Mr Speaker, tonight I announce a fair and responsible path back to a balanced budget".
"Contrary to the government's claim that the tax will only be levied on banking liabilities, the reality is that it will affect the entire banking system", Bligh said in a statement.
The rise in the Medicare levy is created to raise $7.8 billion over two years from July 2019, and is created to fill a $55.7 billion, 10-year funding shortfall in the National Disability Insurance Scheme.
We're all going to be paying more taxes because from 2019, the Medicare levy is being increased from 2% to 2.5%, to fund the National Disability Insurance Scheme.
Medicare rebates are set to rise through a.5 per cent increase on the Medicare Levy from 2018, in a bid to fund the National Disability Scheme.
Mr Morrison argued the infrastructure spending - so-called good debt - should not be included in calculations. He said that Labor would not have given tax breaks to the upper class and large companies and funded the NDIS off the back of big business tax increases.
Nevertheless, the budget plan to impose a tax levy on the Big Banks is a win for the people's outrage against the sector's overwhelming greed and super-exploitation of the community.
Australia's A$1.7 trillion economy has outperformed many of its rich world peers since the global financial crisis, but it has in more recent years struggled to manage the end of a mining investment boom that underpinned much of its wealth.
He also urged customers to shop around if they felt they were not getting a good deal pointing out that smaller regional banks were not affected by the levy.
"This is the bank's contribution to the budget fix task; it's something that happens in the United Kingdom and Europe and brings Australia in line with other jurisdictions".
A super tax, new regulatory bodies, and big fines for new misconduct rules - it wasn't a great day at the office for the banks.
Bank executives will also face tougher penalities for misconduct under a tough new new Banking Executive Accountability Regime, which will require all executives to be registered with the regulator.
"They key will be how well this is executed", he said.
The extra funding will be paid for by a $2.8 billion hit to universities over the next two years.
Credit Suisse analysts estimated in a note on Wednesday that the levy would cost financial institutions around A$1.6 billion a year, or around 5 percent of the banks' current profits. As expected, the Government failed to act in the areas that will make the most difference to housing affordable housing - negative gearing and capital gains tax.
Housing investors will have to pay more.
"The bill will provide transparency about what it really costs to run Medicare and the PBS and a clear guarantee on how we pay for it", said Mr Morrison.