Australia plans major spending plus surplus in 3 years

Australia plans major spending plus surplus in 3 years

The Liberal-National coalition has been trailing Labor for months in opinion polls, after scraping back into office a year ago with a razor-thin majority.

While the government has a keen eye on the electorate, with the popularity of Prime Minister Malcolm Turnbull waning, it is also wary of a possible cut to its coveted AAA credit rating.

The Coalition want to increase the Medicare levy by 0.5 percentage points for nearly all Australians, which would equate to an extra $375 a year for those earning $75,000.

"These are principles that are very important to the Liberal Party".

And in recognition of the pounding on health policy it received at the election past year, it wants to legislate a Medicare Guarantee Bill with a Medicare Guaranteed Fund to cover all expenses of the scheme. Contrary to longstanding rejection by the Government, it has altered negative gearing provisions to bar tax refunds for travel to investment properties, and for removable purchases such as dishwashers.

But Ms Sales pointed out a dramatic about-face from his first budget a year ago.

The banks are furious at what they say is a smash-and-grab measure, that caught them by surprise in Tuesday's budget. "Such policies are not a plan for jobs and growth.", she said. "Why such a drastic change?"

"Labor can not support making people on modest incomes give up more of their pay packet, especially when this budget goes out of its way to give taxpayer money to millionaires and multinationals", he said.

The new levy was consistent with similar taxes on banks "all around the world".

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

After The ornate gold choker has disappeared from Chloe Shorten's neck as she congratulates her husband following his Federal Budget Reply speech
After The ornate gold choker has disappeared from Chloe Shorten's neck as she congratulates her husband following his Federal Budget Reply speech

More broadly, Mr Morrison said the government must guarantee "essential services" in order to reduce cost of living pressures on Australians.

Shares in the big banks fell by as much as 3 percent on Wednesday, having also declined on Tuesday.

But Labor supported the tax on the banks. This does not include people's deposit accounts or mortgages. In a clever political move, the Treasurer has exempted customer deposits of less than $250,000, as well as superannuation and insurance funds. This is a smart tax.

Rumours the banks were under attack leaked ahead of the federal budget.

As the Opposition benches howled, Mr Shorten zeroed in on the new figure: "The government has just announced a $65.4 billion hand-out to business, including big business".

But there's no serious, and hard, reform in this budget.

"We have to fund the NDIS", he said. It's a big decision.

But from 1 July this year, tax deductions relating to expenses incurred while visiting properties in Australia will be completely scrapped.

"The incentive for over-65s to downsize and top up their super is welcome, but unless we increase the supply of affordable age-friendly housing, there'll be nowhere for them to downsize to", IRT Group chief executive Nieves Murray said.

All up, the government hopes to save $2.8 billion from its latest plans to overhaul university funding. It takes values. It takes commitment.

Rockets' Patrick Beverley tears up talking about late grandfather
The Interstate 10 rivals will meet again for Game 4 at the Toyota Center late Sunday night at 8pm (Monday 8 am in Manila). Prior to Game 2 , Pau Gasol hadn't started a game since being injured in a freak pre-game incident in mid-January.