Domingo, 27 May, 2018

Australia budget 2017: Treasurer promises fairness and growth

Treasurer Scott Morrison is planning to impose a tax on interbank transactions according to banking sources The Federal Government Announces Plans To Expand The Snowy Hydro Even Further
Manuel Armenta | 20 May, 2017, 03:09

It is unimaginable that a politician will make a decision to harm their fellows, but the Australian Treasurer has done the next best thing by slapping a new tax on large banks.

The Prime Minister warned the ACCC "would be watching very, very closely" and invited customers to shop around the smaller banks.

Now the nation's top five banks - the Commonwealth, NAB, Wespac, ANZ and Macquarie - will be hit with a 0.06 per cent bank levy on their deposits, starting from July 1 this year.

"They will still be very profitable and the most profitable banks in the world".

The tax will reportedly raise $6 billion over four years.

Banking sector sources say that Treasury Secretary John Fraser would contact banking chiefs at 6.30pm, before Treasurer Scott Morrison's speech.

And in recognition of the pounding on health policy it received at the election previous year, it wants to legislate a Medicare Guarantee Bill with a Medicare Guaranteed Fund to cover all expenses of the scheme.

"The only people paying more tax from July 1 this year are the banks and multi-nationals", Mr Morrison said, in a line that could have come directly from the ALP play book.

The banking sector will also face higher fines should executives breach misconduct laws, ranging from $50 million for small banks to $200 million for larger banks.

"Both Medicare and the NDIS are funded out of consolidated revenue".

The budget will invest $18.6 billion in extra funding to schools over the next 10 years.

A Financial Complaints Authority will be set up as a one stop shop to deal with grievances customers have with banks and other financial institutions.

The Treasurer forecasts a slightly wider deficit than expected for the coming year, but projects that the country's 12th-straight shortfall (in 2019-20) will bring the government's run of red ink to an end.

Challenges in addressing first home buyer issues.

"There are no silver bullets to make housing more affordable", Mr Morrison said.

As for the levy on banks: "We're not going to stand in the way of it".

Contributions and earnings will be taxed at 15 per cent rather than at marginal rates.

Morrison repeated the government's stance that the main problem with housing affordability was that supply had not kept up with demand, and the government will be releasing some government land - starting with 127 hectares of surplus Defence land in Maribyrnong in Victoria (Bill Shorten's electorate), which the government estimates could support up to 6000 new homes.

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.

Construction workers on Sydney's light rail infrastructure project are pictured behind a banner in Australia, May 9, 2017.

Western Sydney airport will get $5.3 billion over the next ten years.

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

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