Mr Morrison said it was "fair" to ask the banks to do their part to fix the budget. Just $5 a month. That compares with the RBA's estimates of 2.75-3.75 percent by mid-2018 through to June 2019.

The Turnbull Government is starting afresh from Tony Abbott's horror 2014 budget, vowing to make the "right choices" for Australia.

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.

She said the measure could "threaten the stability" of the financial system. Revenue from the Medicare levy will be put into this fund plus the amount from general income tax that's needed to cover the total cost.

Budget 2017-18 - Local governments picking up the pieces.

Morrison cast the budget as based on the principles of "fairness, security, and opportunity".

"We are taking practical action to arrest the deficit and the growth in our debt, and doing all we can to preserve our AAA credit rating", he said.

The 0.06-percentage-point levy on money the big banks borrow to fund their lending excludes deposits of less than $250,000.

This is generally shit because the gist is that university fees will go up, and students will have to start repaying tuition fees sooner - as soon as you start earning an income of $42,000, when previously it was $51,957.

There will also be additional taxes on foreigners who own properties.

More news: Xi, Moon agree denuclearizing North Korea is 'common goal'

The $1.5 billion the levy raises each year would come out of corporate profits of $30 billion this year, Mr Morrison said.

The plan to cut to company taxes was the centrepiece of the 2016 budget but had to be split in two after the Senate rejected the full package.

"In a climate where there has been a gradual decline over the last decade in the number of universities offering surveying and spatial science related courses, this budget outcome will only further exacerbate the problem".

The treasurer said fresh spending would partly be financed by slugging the country's five most profitable banks with 6.2 billion Australian dollars in extra fees on their liabilities over four years.

"The banks want to send a message to their customers about how much they value them?"

Yet market analysts were not so forgiving, with Royal Bank of Canada's Su-Lin Ong describing the wage forecasts as "probably on the optimistic side". He said: "As with the many recent new regulatory imposts, we need to take some time to work through the implications".

Labor seized on the more than $15 billion, one-year rise, in the cost of the tax cut in Parliament and hammered the government.

All because numerous assumptions contained in the Budget Papers 2012-13 turned out overly optimistic (in hindsight) and some just plainly off the mark - such as: "Growth is expected to be driven by surging resources sector investment and growth in non-rural commodity exports" and "there is expected to be little contribution from.dwelling investment".

Among revenue boosting measures was a six-basis point levy on the liabilities of banks with liabilities of more than A$100 billion from July 1, a move that will help the government raise A$6.2 billion through 2020/21 to aid budget fix. In particular it increases the vulnerability of the government to a negative shock. Keeping up the pressure on the government, the industry's lobby group on Friday called on the Treasury to release details of the levy and its economic impact.


COMMENTS