The 2017 Federal Budget: 5 ways it could affect you

Postado Mai 12, 2017

The new, seemingly minute levy of 0.006 per cent levy will apply to certain key funding sources, which will affect only banks with debts of more than $100 billion.

In broader economic forecasts, the Turnbull government's optimism about returning the budget to surplus by 2020-21 also suffered a blow on Thursday, with Deutsche Bank slashing United States growth forecasts for 2018 by 1 per cent as the government looks to sell its budget on the back of a "better times ahead" mantra.

All up, our commitments equate to a $10 billion re-investment in Australia's health care over four years, including the $2.8 billion increase in hospital funding.

Mr Morrison and PM Malcolm Turnbull will hope that is enough to keep their party room content, and ensure the government's slim majority remains intact.

The rise in the cost of the tax cut to $65 billion is because of the addition of a new "10th" year, 2027-28, to the 10-year forecast in which the full company tax cut - from 30 to 25 per cent - would be in place for all companies, if the government can pass the required laws.

That leaves the Government vulnerable if housing affordability stays high on the list of public complaints.

The government says it's still on track to return to surplus in 2020-21, and is gambling S&P won't penalise its splurge on productivity-enhancing infrastructure.

The government was keen to put the emphasis on a new $6bn tax on Australia's biggest banks as part of underscoring the political message that the 2017 budget was fairer than the Coalition's previous economic statements.

Labor Leader Bill Shorten is about to get all "us versus them" in his budget reply speech arguing the Turnbull Government is favouring "multinationals and millionaires over middle and working class families".

The budget involved a textbook manoeuvre by Mr Morrison - disarm your opponents by grabbing some of their ideas.

In addition, Szetho says it wants work with the government as it establishes the new Australian Financial Complaints Authority to "ensure it provides a fair and low-priced outcome for fintech firms who will be subject to its activities".

The levy will raise $1.2 billion over the next four years.

The package will allow first home buyers to make voluntary contributions into their superannuation savings, which are taxed at a reduced rate, to help them build a deposit faster.

Turnbull's coalition lacks a majority in the Senate and relies on rival lawmakers to pass legislation - a sometimes hard task, as shown by the government's decision in Tuesday's budget to abandon A$13 billion of stalled savings measures.

One day after the big four bank CEOs rounded on the initiative as a stealth tax and bad policy, the focus shifted to how the policy was formed and why global banks with retail functions such as HSBC and Citi escaped the tax slug.

"They've changed their tactics, they've changed their rhetoric, but they'll never change their minds", Mr Bowen said. The flagship project is an A$8.4 billion Melbourne to Brisbane inland railway to begin construction next financial year.

The Commonwealth Government will also try to gain a larger share or outright ownership of the Snowy Hydro scheme.