Australia plans major spending plus surplus in 3 years

In his budget speech the treasurer, Scott Morrison, said the bank levy was a "fair contribution from our major banks, similar to measures imposed in other advanced countries" and said it would "even up the playing field for smaller banks". Net debt as a share of GDP is expected to peak in 2018-19 before declining over the remainder of the forward estimates. Just $5 a month. But the economy has been sluggish in recent years, following the end of a decade-long, China-fuelled mining boom.

However, like Japanese Prime Minister Shinzo Abe, the conservative government is pinning its hopes on a surge in wages growth, albeit with forecasts that would make Abe blush.

Spending on hospitals will increase by $2.8 billion over four years. Such policies are not a plan for jobs and growth.

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

There's fairness and opportunity, just not much security.

The levy will only be paid by Australia's five largest banks with assessed liabilities of $100bn or more and excludes superannuation funds and insurers.

However, like any annual federal budget, there was a long list of winners and losers, with numerous latter unable to vote on the measures.

An extra $18.6 billion in funding over 10 years under Turnbull's Gonski 2.0 plan goes some way towards the Coalition restoring its education credentials, but is being complicated and potentially derailed by a fierce debate over Catholic school cuts.

It's all bad news for the nation's banks as the shock $6 billion levy revealed in Tuesday night's budget sinks in with market watchers.

Mr Zimmerman said retailers welcomed some budget measures, such as increased infrastructure spending, but said the government had "missed the mark" by focusing on additional taxation to fix the deficit as opposed to cutting spending.

In foreign policy, defense spending was projected to rise by 5.3 percent a year through to fiscal 2021, reaching almost A$34 billion.

Also on Mr. Turnbull's priority list is an inland rail corridor stretching 1,000 miles. A hostile Senate blocked several key planks of that budget. The strongest measures hit relatively easy targets such as foreigners and the rich, while potentially clawing back support lost in elections a year ago to populist and right-wing parties who wield the balance of power in Parliament.

Australian banks have themselves promised unprecedented reforms, including reviewing sales commissions, supporting whistle-blowers and black-listing individuals for poor conduct.

"This measure is meant to encourage foreign owners of residential property to make their properties available for rent where they are not used as a residence and so increase the number of dwellings available for Australians to live in", Mr Morrison said.

"I can confirm tonight that the budget is projected to return to balance in 2021 and reminds and surplus over the medium term".

Productivity growth has slowed in Australia, like in other high-income economies.

"In requiring big banks to give consumers greater control over their own data, the government has stood up to the banking sector lobbyists and shown it's serious about boosting competition in financial services in Australia".

The government's announcement that it will legislate a mandatory comprehensive credit reporting regime, if credit providers are not reporting at least 40 per cent of their data by the end of 2017 - this initiative should help improve fintech firms' access to positive credit data to provide more choices for consumers. In particular it increases the vulnerability of the government to a negative shock.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Raptors start Powell over Valanciunas in Game 4 vs
The Wizards got 29 points from John Wall, who was 10 of 12 from the field and added seven assists and four rebounds. The last time DeRozan didn't make a field goal in a game was in January of 2015 against the Bucks in Milwaukee.

Bumps ahead for 'Obamacare' repeal as Americans air worries
It would roll back state-by-state expansions of Medicaid , which covered millions of low-income Americans, CNN reported . Had just two additional Republicans voted "no", the measure would have lost because bills need majorities to pass.

Harden, Rockets rout Spurs 125-104 to tie series
The two were very close, and at times like this it nearly seems insensitive to acknowledge that asomebody won a basketball game. Otto Porter scored four of his 18 points in the dominant six-minute span that also included five points from Markieff Morris.

Warren Buffet regrets missing out on Google and Amazon
CEO Denis Abrams explaining his decision to fire him based on "a differing view about distribution channels and brand strategy". Given the price that Geico was paying per click, Buffett said, he should have seen the technology company's promise.

Why beating Marc-Andre Fleury is the key to the series
Evgeny Kuznetsov , 24, would score to give Washington the lead, but it was Alex's goal that put the final nail in the Pens coffin. The Capitals scored three goals in less than five minutes to take the 4-2 lead in game 5 and eventually win.

Conte praises Chelsea's "great will" as Premier League title looms
Hopefully on Friday we can have the title. "We are close and in football nothing is done until it's done. The 24-year-old Gibson added: "We have to put it right and make sure we come back stronger".

Conte: Every English Premiership game is a battle
We have another coach who I know very well, Massimo Carerra, who is winning in Russian Federation [with Spartak Moscow]. This season we lost (Branislav) Ivanovic, we lost (John Obi) Mikel and, next season, we'll have lost John (Terry).

For the Eagles, picking Barnett was safe as well as smart
This is a great fit for both Barnett and the Eagles. "I think we have a tremendous player and a tremendous person". And the other fans don't know what they're getting yet. "I really am thankful". "It was just a great weekend".

Always Dreaming Wins The 143rd Kentucky Derby
Perhaps the horse wasn't used to the rain and muddy conditions that the track presented, but it certainly caught everyone's eye. According to the " Today Show ", Patch the horse has been deemed the "lovable underdog" in this year's Kentucky Derby.

Raptors put up a fight against Cavaliers, but fall for third time
The Raptors were prepared for this but the feeling all day seemed to be that Lowry was at least going to be able to help a little. We need to come out with a mentality and a physicality and a force on both ends that says, 'You're not gonna get anything easy'.

Wilfred Ndidi sets Leicester's sights on top-half finish after beating Watford
Neither Leicester manager Craig Shakespeare nor Watford boss Walter Mazzarri knows if they will be in charge next season. Leicester's win sees them climb into ninth place while Watford stay 15th after their fourth loss in five games.

Wizards' Oubre suspended for Game 4 for knocking over Olynyk
Despite his regular season issues, he was averaging a near triple-double and skillfully defending Isaiah Thomas in the playoffs. Trailing 53-48 before the run, Washington led 74-53 on Porter's layup with 5 minutes left in the third.

Health Care repeal passes US House
Mr Trump has emphasised that the Republican bill is "a great plan", and says that it will get "even better". It threatens to drive up out-of-pocket costs for most Americans and make others virtually uninsurable.

Amazon unveils free calling and messaging with Alexa Calling
The Echo Show hasn't appeared on Amazon UK yet, but according to this morning's leak it'll end up costing £220 when it does. Now, reports have claimed that its successor called Echo Show will be available for purchase very soon.

Conte: Players just needed hugs after win
Man City had to come from behind twice to draw 2-2 at Middlesbrough and United drew 1-1 at home to Swansea. It was one of our hardest games with the form Everton have been in at home.


More News

News
More News