Published: Fri, May 12, 2017
Medicine | By Earnest Bishop

Confusion over cost of company tax cuts

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

But Mr Narev said in a statement Wednesday that the new costs would have to be borne by somebody.

Labor will now have a new, larger figure to use as Mr Shorten prepares to give his budget reply speech on Thursday night.

Mr Turnbull said it was only fair the "most profitable banks in the world" paid a levy to help balance the nation's budget, with similar measures in place around the world.

"The levy will only affect our five largest banks with assessed liabilities of $100 billion or more and does not apply to superannuation funds or insurance companies".

That equates to $6.2 billion of new taxes from the banking sector over the next four years. "Customer deposits of less than $250,000 and additional capital requirements imposed on the banks from regulatory authorities are excluded".

The budget revealed a series of measures meant to establish an accountable and competitive banking system, including the major bank levy, an authority to help Australians get a fairer deal from the banks, and a regime holding the banks' top executives answerable.

London conference aims for stable Somalia under new chief
Somalia has been mired in violent chaos since 1991 when warlords overthrew dictator Siad Barre and then turned against each other. Save the Children chief Keven Watkins said the African country "continues to drift toward an avoidable starvation ".

"Unlike the previous bank deposit tax, this is specifically not a levy on pensioners' and others' ordinary deposit accounts, nor is it on home loans".

Additionally, all senior executives will be required to register with APRA with the introduction of a new Banking Executive Accountability Regime.

"If in breach, they can be deregistered and disqualified from holding executive positions, and be stripped of their significant bonuses", the Treasurer said. "Banks will also be held to account if they try and hide misconduct by executives with new mandatory reporting requirements". "We are not sending lawyers around the country for three years, we are acting now", the Treasurer said, in reference to a royal commission.

The budget paper's forecasts for budget surpluses over the medium term are based on projections that tax collections will reach the 23.9 per cent of GDP "cap" set by Mr Morrison then stay there beyond 2022-23, a prediction which the budget says is based on the "cap" being enforced, rather than any presumption of what will happen to tax collections.

Companies hiring workers from overseas on the new temporary skills shortage visa and certain permanent skilled visas will be slugged with a levy that will go into the government's new 'Skilling Australians Fund'.

Morrison said whether Australia maintains its strong credit rating in light of the budget for the fiscal year beginning July 1 was a question for the rating agencies. While prices in Sydney were unchanged in April from March, they were still up 16 percent from a year earlier, pushing the city's median house price to just under A$1 million ($736,000), according to data from CoreLogic Inc. "There are no silver bullets to make housing more affordable", he said in his budget speech.

Like this: