Foreign property investors hit hard in Australian budget

Foreign property investors hit hard in Australian budget

Foreign property investors hit hard in Australian budget

Bligh said there were three groups of stakeholders who would end up bearing the cost of the levy - borrowers, depositors or shareholders.

The government's planned banking levy wasn't likely to meet political opposition in Parliament.

And indeed Morrison's speech was free of the kind of themes which have dominated Coalition budgets of the past - aside from a small swipe at drug-using welfare recipients, there was no "lifters and leaners", attacks on dole bludgers, intergenerational sniping or class warfare.

Uni students will pay more for tertiary education with a 2.5 per cent efficiency dividend introduced. "This is good, common-sense financial management", Mr Morrison said.

The Government will also give $2.3 billion to New South Wales, the Northern Territory and the Australian Capital Territory under its asset recycling initiatives.

Deutsche Bank's team of economic analysts predicted the levy would push down margins and profitability but that "overall the levy has no material impact on the banks' fundamental profile".

Another A$1.2 billion will be raised over the next four years by imposing a levy on foreign workers, another issue that has been heavily debated publicly, with Prime Minister Malcolm Turnbull promising earlier this year "Australian jobs for Australians".

The Treasurer allocated $75 billion to infrastructure, with transport receiving the lion's share of about $70 billion in funding over the next 10 years.

'It is designed in a way to ensure that the banks do not have to pass it on to their customers, it specifically excludes from its base day-to-day bank accounts and day-to-day mortgage accounts, ' he said on Wednesday night.

Tornadoes in Wisconsin, Oklahoma leave 2 dead
As The Amarillo Globe reports, four tornadoes were spotted in the eastern part of the Texas Panhandle Tuesday afternoon. As the tornado continued on it crossed the street and hit a Jennie-O turkey farm, destroying 6 of their barns.

Among other losers were the nation's largest banks, which will face a new tax that will collect A$6.2 billion over the next four years.

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

In a statement, Commonwealth Bank chief executive Ian Narev said he would seek more information from Treasury about the tax, but indicated it could be passed on.

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. "They feel they have had a tax imposed on them uniquely that does not apply to any other part of the business community", she said in a statement overnight.

In March, The Daily Telegraph reported that government ministers were looking at some of the avenues by which such a tax could be applied.

"The only people paying more tax on July 1 are large banks and multinationals", Morrison said, adding that the government expected to raise A$4 billion this financial year in multinational tax from large public companies and corporates.

The government will fully plug the funding hole in the National Disability Insurance Scheme (NDIS) with an increase of 0.5% in the Medicare levy from July 2019, taking it to 2.5%.

First home buyers will be able to salary sacrifice to buy their first home.

Related news