Federal budget 2017: Scott Morrison makes promise of better days for government

Andrew Cummings
May 19, 2017

He also gave the major banks both barrels at the breakfast.

The Prime Minister said that would be unwise.

A super tax, new regulatory bodies, and big fines for new misconduct rules - it wasn't a great day at the office for the banks.

Marie Diron, associate managing director of Moody's Investors Service, said the agency assessed Australia's fiscal strength as "very high, a key support to the government's triple-A raiting and stable outlook" after the budget.

Treasurer Scott Morrison told the Seven Network the ACCC would be "keeping an eye on them to make sure they don't lie to their customers about this".

This comes at a cost of $2.2 billion over four years.

"The banks are in a position to support budget fix and we're asking them to do so".

Mr Turnbull and Mr Morrison will hope Tuesday night's Budget proves to be a turning point for a government that has struggled in the polls since last year's election.

"The banking levy effectively represents double-taxation of some of Australia's most successful companies, which already pay Aus11 billion in company tax each year, employ about 130,000 Australians and contribute to the superannuation (pensions) of millions more", she said.

He argues new measures to get tough on bank behaviour will kick in immediately, which is a bid to blunt the sharpness of Labor's push for a royal commission.

Mervyn Tang, director of Asia-Pacific sovereigns at Fitch Ratings, said the new revenue measures in the budget implied a faster reduction in the government deficit.

Bank executives will be subject to a new accountability regime in which the Australian Prudential Regulation Authority will have the power to sack or disqualify them, claw back their bonuses and enforce penalties on banks of up to $200 million.

Mr Turnbull the Medicare levy hike would offer comfort to the families of children with disabilities.

"The stock market closed today with $14 billion wiped off the value of Australian banks".

Peter Costello has criticised the second Scott Morrison budget.

Until now investors could claim a tax deduction on travel costs when visiting a property they owned, while there has been no limit to the number of times an owner could visit each year.

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.

He cautioned the so-called Big Five - Commonwealth Bank, Westpac Banking, Australia and New Zealand Banking, National Australia Bank Ltd and Macquarie Group Ltd - against passing the costs on to consumers.

"We're not sure the case is made just to automatically increase the taxes for everyday Australians", he told Channel Seven on Wednesday.

However, he projected a bigger A$29.4 billion shortfall for 2017/18 than the A$28.7 billion forecast at the mid-year review in December as it dropped savings measures, including welfare payment reforms, that had been artificially propping up the finances after opposition parties in the upper house of parliament refused to pass them into law.

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