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Published: Fri, May 12, 2017
World | By Lorena Waters

Australia plans major spending plus surplus in 3 years

Australia plans major spending plus surplus in 3 years

The Turnbull government's signature company tax cut will cost an eye-watering $65.4 billion over 10 years from July 1, 2017, the Prime Minister has confirmed, a more than $15 billion rise from the initial near $50 billion cost.

There will be $75 billion of infrastructure spending over the next decade.

It was a great time to be in government.

"There is clearly the potential for better days ahead", Mr Morrison said.

Conservatives across the board have criticised the budget for being "Labor-lite" and "tax and spend". These cuts appear unlikely to pass the Parliament, at least in this term, but the government remains committed to them.

Morrison told CNBC in the budget lock up.

The government will impose a 0.5 per cent rise in the Medicare Levy in two years' time to fully fund the $6 billion gap in the NDIS funding.

In response the Treasurer claimed the principles in the budget were "very important to the Liberal party" and pointed out that the decision to raise the Medicare Levy to fund the National Disability Insurance Scheme was "a shared commitment" of every parliamentarian. "This is good, common-sense financial management", Mr Morrison said. "We could all potentially be recipients of this scheme".

At $1.5 billion each year, that's less than 5% of the major banks combined $30 billion annual profits.

He also urged customers to shop around if they felt they were not getting a good deal pointing out that smaller regional banks were not affected by the levy.

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"This is the first chance for Turnbull to deliver a budget with clear air and put his own stamp on Australia's economic management", said Andrew Hughes, a political analyst at the Australian National University in Canberra.

"This isn't a tax. on pensioner's bank accounts". This includes nationalising the Big Four, plus Macquarie Bank, under community control and place the massive assets they possess under public ownership.

"If in breach, they can be deregistered and disqualified from holding executive positions, and be stripped of their significant bonuses", the Treasurer said. The Australian Bankers Association portrayed the new assessment as "inalienably risky", faulting theory that the measure may be incorporated the financial plan for banks losing AU$14 billion ($10 billion) in incentive on the Australian securities exchange prior Tuesday.

"We've had a fights about funding for several years".

"It is naive and misguided and has already sent the wrong signals to global financial markets about the strength and stability of our banking sector".

Fairfax Media reports Mr Shorten is expected to announce a crackdown on "loopholes for millionaires" as well.

Treasurer Scott Morrison said the country's profitable banks, which have been under fire in recent months amid a series of misconduct scandals, would bear the brunt of a budget "re-set" as he abandoned so-called "zombie savings" worth some A$13 billion.

Szetho says that Fintech Australia would be working closely with other start-up industry groups to "assess the potential impacts of the government's announced new levies on businesses which employ skilled migrants".

Running parallel to the Government's nation-building programs is the concentration on health, with a $10 billion spending increase over four years, in part to counter the risk of Labor again use the policy area to attack the Coalition.

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