Budget 2017: The Politics Of Picking A Fight With The Banks

"If (the levy) is not passed on (to customers), you're stripping capital out of the banks when they have to be unquestionably strong", Murray said.

The Budget imposed a 0.06 per cent annual levy on banks with a debt of more than $100million, including the country's big five banks - Commonwealth Bank, Westpac, ANZ, National Australian Bank and Macquarie.

The tax resembles a charge im-posed on big mining companies in 2010 that was ultimately re-designed after an industry advertising campaign which helped unseat the then Labour prime minister Kevin Rudd.

"The underlying cash balance will improve from a forecast deficit of $29.4 billion in 2017-18 to a projected surplus of $7.4 billion in 2020-21. 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?" "Our banks pool 30 billion Aussie dollars in profits annually and this is 1.5 billion Aussie dollars in tax (per year for four years)", Morrison said.

Wage growth is projected to accelerate to 3.75 per cent by the end of the four- year budget estimates, nearly double the rate now.

The levy that Australians pay for their universal health care system would increase from 2 percent of their income to 2.5 percent to help pay for a newly established disability insurance scheme.

While Mr Morrison is hitting the biggest businesses, he is delivering for smaller ones.

The government will also lift the freeze on the Medicare rebate from July, which is set to cost the government an extra $2.2 billion but will be covered by an increase in the levy.

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

He said pay packets were set to rise by three per cent over the next four years while the national economy would expand by three per cent in the coming two years.

Now in what looks like a significantly more generous Budget than before from the Coalition government, Prime Minister Malcolm Turnbull appears to be trying to reverse that negative reputation and make a comeback from tepid polling and a near miss at the 2016 election which severely weakened his government.

That equates to $6.2 billion of new taxes from the banking sector over the next four years.

Morrison noted that new land would be made available for affordable homes and tax cuts introduced on first home deposit savings. They will be able from July 1 to salary sacrifice into their superannuation account, separate from their compulsory superannuation contributions.

The government will pour an extra $75 billion into infrastructure spending over the next decade with much of it going to big nation building projects.

That's expected to generate 60,000 jobs in the long term.

They also remain in the dark over which commercial activities will be captured by the tax.

The government will also tackle supply issues, unlocking Defence land in Maribyrnong, in Melbourne's west, for 6000 new homes, and crack down on foreign buyers of new developments.

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