Morrison targets banks, multi-nationals in dash for cash
An increase in the Medicare levy for all Australians, a new tax on the country's five biggest banks, and new measures to crack down on multi-national tax evasion were the centrepiece of Tuesday night's federal budget.
The measures will raise almost $21 billion of new tax revenue over the next four years, and help give the Turnbull government a modest surplus by 2021.
In a budget that targets the Turnbull government's future election prospects as well as much-needed fiscal repair - finally putting to rest the ghosts of Joe Hockey's politically toxic "lifters and leaners" budget of 2014 - Treasurer Scott Morrison described the 2017 budget as a "reset", and emphasised this was a budget for "right choices" and "fairness". Read more
Budget slugs banks with new levy, further measures
For Australia's five biggest banks, this year's federal budget will go down as another Black Tuesday.
By the time the federal Treasurer's speech was over, the banks faced a super tax, two powerful new regulatory bodies, fines of up to $200 million for breaching tough new misconduct rules and a beefed-up competition watchdog. Read more
First-home buyers get 'super' saver scheme
Saving a deposit is the toughest challenge for first-home buyers and the federal government has promised to provide a helping hand with a new savings initiative worth $250 million.
The First Home Super Saver Scheme will allow entry-level buyers to save funds at a discounted tax rate by making additional contributions to their superannuation.
These additional contributions, and earnings made on them, would then be able to be withdrawn to be used as a home deposit. Read more
Retirees given $300,000 incentive to downsize
Retirees holding onto their family homes have been given a $300,000 incentive to sell under a federal budget plan to encourage older property owners to downsize.
Home owners aged 65 and over selling a home they have lived in for 10 or more years will be able to make a non-concessional contribution of up to $300,000 into their superannuation from the proceeds of the sale.
Both members of a couple are allowed to take advantage of this measure for the same home. Read more
Foreign home buyers hit by vacancy tax and restrictions
Foreign ownership of new developments will be restricted, there will be steeper charges applied to purchases, less favourable tax treatment and charges on those with empty properties, in a raft of measures in the federal budget aimed at taking the sting out of the housing market.
One measure to be introduced from Tuesday is for foreign buyers to be slugged a fee for having a property that sits empty for six months or more in a year.
Those who don't have a tenant in their property, or live in it themselves for a lengthy period of time, will be expected to pay an annual charge equal to their foreign investment application fee. Read more
$75b infrastructure spending spree to include Snowy Hydro buy-back
A $75 billion infrastructure spending spree, to last 10 years and including a potential buy-out of the Snowy Hydro scheme from the states as well as a $20 billion "once in a generation" rail line upgrade, is the centrepiece of the Turnbull government's economic growth plan.
The 2017-18 federal budget on Tuesday outlined the government's seven-year funding plan, which includes the expensive commitment to uprade Australia's passenger and freight rail lines to "provide better connections for our cities and regions and create new opportunities". Read more
A budget of ticking boxes, says former Liberal leader John Hewson
“This is strangely a pre-election budget just after an election.”
This is the opinion of former Liberal Party leader Dr John Hewson in the lead up to the reveal of the 2017 Federal Budget.
There have been many leaks of what the budget will contain in the lead up to the annoucement, including for education, infrastructure and housing.
Dr Hewson said he thought it would be a very political document, addressing pressure points the Turnbull government currently faced. Read more
Scott Morrison makes promise of better days for government
The Coalition won the 2016 election, but a year later has delivered a Labor budget.
Labor will describe it as "Labor lite".
But the document delivered by Treasurer Scott Morrison on Tuesday night will go a long way towards addressing the key concerns that provided a near-death experience for the Liberal-Nationals Coalition. Read more
Treasurer reacts to Budget cartoon
Pauline Hanson streams budget reaction
One Nation leader Pauline Hanson will take to Facebook this evening to host her own live stream of budget reaction with her other One Nation senators.
What’s in store? Well, let’s find out…
Check out the budget for yourself
Did you know you can read all the Budget papers online, right now? Check out http://www.budget.gov.au/
Budget in five minutes
- Deficit of $29.4 billion in 2017/18 but projected surplus of $7.4 billion in 2020-21
- Increased Medicare levy adding $8.2 billion to the bottom line for three years
- Wage growth expected to increase from 2 per cent to more than 3 per cent over the next four years
- Up to $13 billion of "zombie" 2014-era cuts to education and welfare will be dumped to shore up AAA credit rating
The ecomonic outlook does looks brighter and projections for the deficit are encouraging but significant risks remain
- Extra funding for the Tax Office's taskforce charged with clawing back $15b from the black economy
- "Google tax" expected to raise more than $4b from big business and multinationals
- Banks subject to bigger fines of $50m-$200m for serious misconduct
- Six-basis-point levy on the five largest banks, raising $6.2b over the budget and forward estimates
The Treasurer was quick to point out that the banks and multinationals are the only ones who will be paying more tax on July 1
- Small business $20,000 instant asset write-off extended for second year
- Businesses with a turnover of up to $50m will receive a company tax cut
- Annual temporary work visa levy of $1200 or $1800 per worker a year, and one-off permanent skilled visa levy of $3000 or $5000
The lifeblood of the economy receives a welcome boost which should spur job creation
- First-home buyers can salary sacrifice for deposit from pre-tax pay
- Retirees who sell family home can add non-concessional $300k into super
- "Ghost tax" of up to $5000 for foreign buyers who leave homes empty
- Community housing associations can borrow money at lower rates of interest
- Increase captial gains discount by 60 per cent for investments in affordable housing
- $1b to fund deals within cities to develop urban areas
To fix housing you need a lot more houses, but in the long term these measures are likely to see prices continue to rise
- Gambling ads banned during live sports broadcasts before 8.30pm, and for five minutes before and after start of play
- $130 million annual licence fee for broadcasters will be scrapped in favour of a $40 million spectrum fee
- Repealing the 75 per cent reach and cross-media ownership laws
Changes will allow traditional media companies to compete with new companies. Previous laws were outdated
- Australian Federal Police get $321m to recruit anti-terrorism/trafficking specialists
- $350m for mental health services for veterans
- Defence spending is expected to rise from $32.4b in 2016-17 to $58.7b in 2025-26
Extra funding will help security agencies protect Australians at home and abroad
- Melbourne-Brisbane inland rail link gets $8.4b with construction to begin this financial year
- Second airport for Sydney at Badgerys Creek to get $5.3b over 10 years
- $844m to upgrade Bruce Highway
- $1b for Victorian projects including $550m regional rail fund, $30m for airport link business case
Big-ticket items to boost economic growth, jobs and the national psyche
- Medicare rebate to be lifted, costing $2.2b over four years
- Medicare levy to be raised by 0.5 percentage points in two years' time
- Extra $2.8b for hospitals
- $1.4b over four years for medical research
- Price cuts for taxpayer-subsidised medicines, which will save $1.8b over five years
- $115m for mental health
Better funding of Medicare and the NDIS provides security and insurance for all of us. A fair outcome
- One-off energy payments for pensioners ($75 for singles, $125 couples)
- Almost $430m to support universal access to pre-school for all four-year-olds
- $5.5m vaccination campaign. Family Tax Benefit A payments reduced by $28 a fortnight if children aren't fully immunised
- Expanding ParentsNext program to help young parents get jobs
- $3.4m over two years to expand Specialist Domestic Violence Units
Little extra funding for families hurt by Medicare levy increase
- Demerit point system means payments deducted if job interviews skipped
- $375m to extend homelessness service funding to the states
- Drug-testing trial will have 5000 welfare recipients put on voucher system if they test positive
Some of the more controversial measures announced but little actual change
- Government in talks to buy back share of Snowy Hydro from Victorian and NSW governments
- $90m to secure access to Australian gas for domestic use
- $37m for new energy infrastructure and gas pipeline in South Australia
The Snowy Hydro initiative had already been announced and there is little more here to get excited about
- Extra $2.2b over four years for schools
- Reintroduction of Gonski-style needs-based funding formula
- HECS debt threshold lowered to $42,000
- University students face 7.5 per cent tuition hike
- Universities hit with 2.5 per cent - or $2.9bn - efficiency dividend over two years
A welcome injection of cash for schools, but university students are worse off with higher fees and faster payments