Australia plans major spending plus surplus in 3 years
May 15 2017 by Harriet Stone
The increase will raise A$8.2 billion over the budget period.
The government on Tuesday announced a six basis points levy on bank liabilities in a bid to raise about A$1.5 billion a year from the five biggest banks - Commonwealth Bank of Australia, Westpac Banking Corp, Australia and New Zealand Banking Group, National Australia Bank and Macquarie Group - over the next four years.
There's fairness and opportunity, just not much security. It commits to more and better paying jobs, guaranteeing essential services, putting downward pressure on the cost of living, and Australia living within its means.
Mr Morrison's message to the banks - families have to absorb costs, and so should the banks - will likely resonate with voters. This will cover nearly half of the "zombie" savings measures the Turnbull Government has been unable to get through the senate.
Proceeds from part of the Medicare levy plus the amount of other income tax revenue needed to cover the costs will be paid into the fund. Scott Morrison says he has been listening to voters and reflecting on what he has heard.
Pensioners hit by an assets test change introduced earlier this year will get their concession cards back. $15.3 million will be allocated to Geoscience Australia over two years to create Digital Earth Australia from the existing Australian Geoscience Data Cube.
"Whether you are saving to buy a home, spending a high proportion of your income on your rent, waiting for subsidised housing, or you're homeless, this is an important issue to you", Mr Morrison said.
Downsizers will get special exemptions from superannuation rules to allow them to put lump sums into their retirement savings from selling their family home. For properties bought from now it will limit plant and equipment depreciation deductions.
Housing investors will have to pay more.
Deanna Hutchinson, the CEO of the Spatial Industries Business Association (SIBA) said spatial businesses are set to benefit from the new budget.
The government also expects to gain $4 billion this year alone from taxes on big multinational companies.
"The continued, although more background focus on innovation is also very positive for spatial businesses". Unemployment is expected to stay steady at 5.75 percent.
Treasurer Scott Morrison promised to deliver a small A$7.4 billion ($5.4 billion) surplus in 2020/21, an improvement on the A$1.08 billion it forecast in the mid-year review in December. The budget deficit is expected to narrow to AUD29.4 billion in 2017-18 from AUD37.6 billion in 2016-17.
A number of big ticket infrastructure items were announced to the total tune of $75 billion in total.
Construction workers on Sydney's light rail infrastructure project are pictured behind a banner in Australia, May 9, 2017.
Sales pointed out that there would be 0.5% increase in the Medicare Levy, which would see most taxpayers forking out extra money each year.
"This is a practical budget", Morrison said. This time it proposes a drug testing trial for 5,000 new welfare recipients, and will deny the disability support pension for a disability caused exclusively by a person's own substance abuse. JobSeeker recipients testing positive would be placed on the Cashless Debit Card.
"If in breach, they can be deregistered and disqualified from holding executive positions, and be stripped of their significant bonuses", the Treasurer said.
The disability support pension will be denied for a disability caused exclusively by a person's substance abuse.
It is unimaginable that a politician will make a decision to harm their fellows, but the Australian Treasurer has done the next best thing by slapping a new tax on large banks.