Deal with both tasks is to start in the financial year which begins July 1.
However, he projected a bigger A$29.4 billion shortfall for 2017/18 than the A$28.7 billion forecast at the mid-year review in December as it dropped savings measures, including welfare payment reforms, that had been artificially propping up the finances after opposition parties in the upper house of parliament refused to pass them into law. That will include a potential buy-out of the Snowy Hydro scheme from Victoria and NSW, and a $20 billion “once in a generation” rail line upgrade.
It was a great time to be in government.
Labor holds a clear poll lead over the Coalition as Mr Morrison prepares to release his second Budget.
And Mr Morrison officially scrapped $13 billion in so-called zombie Budget measures hanging over from the 2014 and 2015 budgets.
Labor’s federal budget reply, released on Thursday, would see people earning more than $180,000 permanently face a 49.5 per cent tax rate, including the 0.5 per cent increase in the Medicare levy announced by the Turnbull government and make permanent a 2 per cent “temporary budget fix levy” that the Coalition is determined to expire on June 30. That would, it says, raise a net additional $4.5 billion in revenue.
As for “good debt” versus “bad debt”, the Budget papers report that about 89% of Australia’s Budget is recurrent spending and only 11% is for capital investment. “We could all potentially be recipients of this scheme”.
“On the Medicare levy we will take our time”.
In April, Shadow Treasurer Chris Bowen announced that Labour would facilitate a process to introduce a uniform vacant property tax across all major cities through the Council of Australian Governments. In a clever political move, the Treasurer has exempted customer deposits of less than $250,000, as well as superannuation and insurance funds.
“Every budget is a combination of policy and politics but this budget really is all about addressing the political challenges of the Turnbull Government – it is as much a political document as an economic document”, Mr Reece says.
Mr Morrison insisted the levy was specifically tailored for the banks and not other big companies.
A Treasury spokesperson said the “finalisation of technical details and the legislation” will be undertaken directly between Treasury and the banks.
Banking expert Claire Matthews recons there won’t be an immediate impact on New Zealand customers, NZ banks are separate subsidiaries of their Australian couterparts.
The government also plans to create the Australian Financial Complaints Authority for dispute resolution.
The Government aims to raise $1.2 billion from this levy over the next four years, in a bid to contribute directly to a new “Commonwealth-State Skilling Australians Fund”.
The extra funding will be paid for by a $2.8 billion hit to universities over the next two years.
But he believes the government had “wimped out” on tackling housing affordability with its new measures unlikely to make a significant difference.
“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.
“Queenslanders are only too aware of the damage done to local health services by the cuts inflicted upon it by the Turnbull Government which seems determined to walk away from its funding responsibilities to Queensland’s health system”.