Australia plans major spending plus surplus in 3 years

Australia plans major spending plus surplus in 3 years

Australia plans major spending plus surplus in 3 years

Among revenue boosting measures was a six-basis point levy on the liabilities of banks with liabilities of more than A$100 billion from July 1, a move that will help the government raise A$6.2 billion through 2020/21 to aid budget fix.

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

The $100 billion threshold will be indexed to grow in line with nominal Gross Domestic Product. The $1.5 billion the levy raises each year would come out of corporate profits of $30 billion this year, Mr Morrison said.

It is expected that the new levy will raise up to $6.2 billion.

Unsurprisingly, the head of the Australian bankers' Association dubbed the new tax to be: "a direct attack on jobs and growth", but he will garner little sympathy outside of banking circles.

"This isn't a tax. on pensioner's bank accounts".

Moving on, $300 worth of extra dental care for children every two years is included, with a commitment of $80 million for Australians living with mental illness.

The housing package is an assortment of targeted measures, including a tax break for young savers, help for older downsizers, and initiatives on rental and low-priced housing.

He emphasised: "A tax can not be absorbed". Throw in assumptions for global growth, the progress (or otherwise) of Australia's major trading partners, geopolitical uncertainties (trade war mongering by Trump), commodity prices, exchange rates.and we have a minefield of one, or several, or all going wrong. "We are a practical government".

Numerous commentators described it as a "Labor Budget" because it had shown a surprising willingness to increase taxes and to boost spending on areas such as schools and support for the disabled.

Already, the banks are facing a review by the Productivity Commission which will be taking a very close look at the state of competition in the financial sector.

Mr Morrison said the government was being "upfront" about the 10 year cost, arguing the tax cut is needed to ensure the Australian economy remains competitive.

"There is no "magic pudding" [like in the children's book]". Westpac Banking declined 0.2% and investment bank and asset manager Macquarie dropped 1%, while National Australia Bank edged up nearly 0.1%.

"[Do] the banks want to send a message to their customers about how much they value them?" the treasurer of the centre-right government said. A tax of $5000 per annum will now be imposed on foreign investors with vacant properties. But if there's anything good about it, he said, it's that you're disabled in Australia. "We will see. What I will say is we desperately need broad tax reform in this country, but is a super tax on just the banks the answer?"

The bank added: "At this stage, it is too early to provide a definitive estimate of the financial impact on ANZ and an update will be provided to the market when ANZ's analysis is complete".

"This new tax is not a well thought out policy response to a public interest issue, it is a political tax grab to cover a budget black hole".

"This government will not rest until we have successfully fought to implement a company tax framework that sets Australia up to have more and better-paid jobs in the future and for future generations".

"Barriers to investment are not productive for the building industry or the economy more broadly; investment needs to be encouraged".

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