Budget 2017: $75b plan to create more than 60000 jobs

Jay Anderson
May 20, 2017

"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.

To offset these goodies, the Medicare levy will be increased in two years to help fund the national disability insurance scheme while the big banks face a new levy to help fix the budget.

But the budget forecast a A$7.4 billion surplus in 2020-21, an improvement on A$1.08 billion at the mid-year review.

Investors were already wary of the banks and the news, combined with slightly soft trading update from the Commonwealth Bank of Australia, deepened a sell-off that began on May 2 and has now sliced A$30 billion from the capitalisation of the banks. Morrison is expecting further growth in the nation's obligations for some years before it peaks at A$375.1 billion in 2018-19.

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.

"This budget will be committed to fairness, opportunity and security, ensuring that Australians are given the opportunity to get ahead, the economic growth that enables them to get ahead, to get a better job, a better-paying job, to start a business, grow a business, to realize their dreams", Turnbull told reporters.

"The budget is about making the right choices to secure the better days ahead", Morrison said in sticking to his promise to return a surplus by 2021/22 from a projected 2017/18 deficit of 29.4 billion Australian dollars.

Treasurer Scott Morrison said the lenders could afford to pay, and the cash would help with budget fix and a raft of spending on infrastructure, health and schools.

In a surprise move, the Turnbull Government will bring back a trial on drug testing welfare recipients.

Microsoft Releases 'Highly Unusual' Windows XP Patch As Ransomware Attack Spreads
The attacks exploited the computers because they were running outdated versions of Microsoft's Windows operating system. His concerns were echoed by James Clapper, former director of national intelligence under President Barack Obama.

At the same time, schools will face a $22 billion easing in funding and the Medicare GP rebate freeze won't come off in its entirety.

The extra Medicare levy revenue will be directed into a new fund, which will be used to fund the National Disability Insurance Scheme (NDIS).

Employers will pay an annual levy of up to AU$1,800 ($1,322) for every foreign worker they employ on a temporary visa.

Businesses with a turnover of up to $50 million will receive a company tax cut and the $20,000 asset write-off has been extended for a second year.

Morrison has hinted at a package to tackle affordability and help first home buyers, while foreign investors could be slugged with new fees if they leave their investment properties empty.

Older Australians wanting to downsize will be able to put in up to $300,000 from the sale of their homes as a top up on their superannuation. The airport is expected to create 60,000 jobs in the long term and is projected to be complete by 2026.

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.

In March, The Daily Telegraph reported that government ministers were looking at some of the avenues by which such a tax could be applied.

Other reports by BadHub

Discuss This Article