Published: Thu, May 18, 2017
Money | By Armando Alvarado

Federal Budget 2017: Winners and losers

Federal Budget 2017: Winners and losers

Leading global analyst firm Deloitte has delivered its own feedback on the Annual Budget 2017-18 handed down by Treasurer Scott Morrison on 9th May, 2017.

Along with Prime Minister Malcolm Turnbull, Mr Morrison has crafted a Budget created to reframe political conversations in this country between now and the next federal election in 2019.

But it forecast widening deficits in the next three years before a return to surplus, which saw Standard and Poor's warn the rating could be lowered if the government does not improve its budget balances and deliver on the surplus plans.

Former prime minister John Howard has also called it a tax.

His key measures include a new tax on banks, expected to generate at least $1.5 billion annually, and an increase in the Medicare levy to 2.5% from 2% to pay for the National Disability Insurance Scheme.

"The Treasurer has jettisoned decades of conservative fiscal orthodoxy around deficits and, particularly, debt", said business commentator Ian Verrender on the ABC News website.

Mr Morrison is happy to lay the blame for tax rises on the Upper House, calling them a senate tax.

Ms Bligh said it was unacceptable to keep banks and the broader community "in the dark" and has demanded to see the modelling by 5pm on Tuesday, May 16, the day before the ABA expects to see the draft legislation for the new levy.

Spending on hospitals will increase by $2.8 billion over four years.

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The government will also lift the freeze on the Medicare rebate from July, which is set to cost the government an extra $2.2 billion but will be covered by an increase in the levy.

Spending will be A$34.6 billion (S$35.8 billion) in 2017-18, with plans to lift spending to 2 per cent of gross domestic product by 2020-21.

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'.

Revenue raised from the scheme - fees from which could be as high as $5,000 - would be redirected into the broader package of housing affordability, and would be in addition to current FIRB charges for approval of foreign purchases of Australian property which are now set at $5,000 and $10,000 for properties worth less than $1 million and $1 million or greater respectively.

Morrison noted that new land would be made available for affordable homes and tax cuts introduced on first home deposit savings.

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

Older Australians will be encouraged to downsize by being able to make a non-concessional contribution of up to A$300,000 into their superannuation fund from the sale of their home. The flagship project is an A$8.4 billion Melbourne to Brisbane inland railway to begin construction next financial year.

"If in breach, they can be deregistered and disqualified from holding executive positions, and be stripped of their significant bonuses", the Treasurer said.

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