Foreign property investors hit hard in Australian budget

The Treasurer has jettisoned decades of conservative fiscal orthodoxy around deficits and, particularly, debt. I welcome the fact that, yesterday, the Commonwealth Bank and the ANZ Bank took a breath, and I think they issued a very measured statement.

MR IAN VERRENDER, business commentator on the ABC News website.

The Federal Government has announced a $2 billion expansion of the Snowy Mountains hydro scheme, increasing the 4,000 megawatt output by 50 per cent - a plan that will power up to 500,000 homes.

He said pay packets were set to rise by three per cent over the next four years while the national economy would expand by three per cent in the coming two years.

"It is honest about our challenges and opportunities".

"While we wait for further information about how this tax is proposed to work, our focus at NAB remains on supporting our customers during what is a critical time in the Australian economy".

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.

For 2017/18 the deficit comes in at $29.4 billion, and $21.4 billion the following year, before making a remarkable step-down to just $2.5 billion in 2019/20 and then posting the first surplus in 13 years at $7.4 billion in 2020/21.

"We must live within our means and this is an honest budget", Morrison said, adding that a new six-basis point levy on big banks' liabilities, to kick in on July 1, would raise A$6.2 billion over the next four years.

The extra Medicare levy revenue will be directed into a new fund, which will be used to fund the National Disability Insurance Scheme (NDIS).

The 2017 Budget also seeks to entirely recover from Labor's Mediscare campaign that almost cost the Coalition the election while tackling the Opposition's main arguments on schools' funding, training and a calls for a Royal Commission into the banks. It will provide A$8.4 billion in equity into the planned Melbourne-Brisbane inland rail project.

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

Australia announced measures on Tuesday to boost the supply of homes and tighten the screws on foreign property investors in a bid to temper the soaring property prices in the country's major cities.

The Treasurer was unrepentant when speaking about the new tax, which he admits will be used for budget fix after he was forced to dump more than $13 billion of "zombie" savings measures from the 2014 federal budget that had failed to pass the parliament.

Commentators predicted that measures such as the banks' tax and extra spending on retirees and infrastructure were likely to prove popular.

Relations between the government and the banks are plummeting with Prime Minister Malcolm Turnbull dismissing as nonsense their claims that the new $6.2 billion tax and tough regulatory measures could destabilise the banking system.


Popular
  • Europol Admits Cyber-attack was Unmatched

    Europol Admits Cyber-attack was Unmatched

    The organisation said it continues to experience IT disruption and urged the public to use other NHS services where possible. The US Treasury Department said it will play a "leading role" in protecting the global financial system's IT infrastructure.
    Three things we learned in the NHL: Fleury stonewalls Capitals

    Three things we learned in the NHL: Fleury stonewalls Capitals

    Jake Guentzel leads Pittsburgh with seven goals, Phil Kessel has seven assists and Sidney Crosby has 21 shots on goal. The first goal came midway through the first period and tied the game at one after an early Rangers goal.

    Korea's Moon to send delegation to China amid frayed ties

    Chinese group tours to South Korea have also been canceled, while anti-Korean sentiment has proliferated online. Both leaders agreed to strengthen the US-South Korea alliance and the "friendship" between the two countries.
  • Running Windows? How to protect against the big ransomware attack

    Running Windows? How to protect against the big ransomware attack

    The other is to disable a type of software that connects computers to printers and faxes, which the virus exploits, O'Leary added. Security companies and law enforcement scour ransomware to find mistakes, which "allows them to crack the code", Woser said.

    ITunes Coming to Windows App Store Ahead of Windows 10 S Launch

    But a year ago , the company conceded that the objective was unreachable under the self-imposed time limit. There is not much of a learning curve to adopt when it comes to using the app itself.

    Senate Delves into ACA Substitute Bill's Medicaid Reform Provisions

    Changes were made and the revised bill, with a push from Trump, received 217-213 approval last week. But it provides the protections for people with pre-existing conditions , as promised.
  • Swanson hits tiebreaking HR, Braves beat Blue Jays 9-5

    Swanson hits tiebreaking HR, Braves beat Blue Jays 9-5

    Freeman made it 5-2 by connecting off Marco Estrada in the fifth, but Pillar replied with his homer in the bottom half. The 26-year-old Ceciliani is now in the midst of his second season north of the border as a member of the Blue Jays .
    How lawmakers get their health care

    How lawmakers get their health care

    Harris also expressed worry about the potential changes to Medicaid, especially when it comes to elderly patients. The poll found the requirement was supported by 86 percent of Republicans and 94 percent of Democrats.

    Oubre gets Game 4 suspension for Olynyk spat

    The surges made Washington the first team to have two games with a run of 20-plus points in one postseason since the 2011 Spurs. Washington defended aggressively on Boston guard Isaiah Thomas , who scored 53 points in Tuesday's 129-119 overtime win.
  • Chelsea's trip to West Brom sparks memories of Bolton in 2005

    Fabregas became the first player in the history of the Premiership who had 10 or more assists in 6 different seasons. Gary Cahill has insisted Chelsea are not getting complacent as they edge ever closer to the Premier League title.

    Tottenham's Son Heung-min is Premier League player of month

    Undoubtedly Kane has made his mark on White Hart Lane, even though the majority of his career looks to be at the new stadium . Spurs will play home games at Wembley next season and return to the new and improved ground in 2018/2019.
    Match Previews: West Bromwich Albion v Chelsea

    Match Previews: West Bromwich Albion v Chelsea

    The Blues are vying to complete the double over West Brom for the first time in six seasons. Here, we look back at five vital games on their road to glory under Antonio Conte.

CONNECT