Australia's Budget in Charts Shows Revenue Key

Treasurer Scott Morrison is planning to impose a tax on interbank transactions according to banking sources

Treasurer Scott Morrison is planning to impose a tax on interbank transactions according to banking sources. Michael Mucci

Australia's treasurer Scott Morrison said the banks were profitable and would be watched closely for any misrepresentation as they sought to offset the cost.

In 2010, under former Prime Minister Kevin Rudd, the Labor government introduced a new mining tax on big mining profits and faced an industry backlash which included anti-government television commercials.

Despite boosted outlays, the Treasurer promised a $7.4 billion surplus in 2020-21 with no borrowing for recurrent spending, which cover the day-to-day bills from running the government.

Investors were already wary of the banks and the news, combined with slightly soft trading update from the Commonwealth Bank of Australia, deepened a sell-off that began on May 2 and has now sliced A$30 billion from the capitalisation of the banks.

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.

Morrison said any increased government stake would be dependent on the project remaining in public hands and the New South Wales and Victoria state governments returning reinvesting the funds in priority infrastructure projects. "Banks will also be held to account if they try and hide misconduct by executives with new mandatory reporting requirements".

A 0.5 percentage point rise in the Medicare levy from mid-2019 will cost a worker on $80,000 about $400 extra a year to fund the national disability insurance scheme.

The Turnbull Government announced the end of the troublesome Medicare rebate freeze which has been forcing up the cost of GP visits and threatening the spread of bulk billing.

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.

In Deloitte's economic overview, it says Mr Turnbull is looking to "add some substance to his cities agenda through substantial investments in transport and other infrastructure projects" announced in this Budget.

Defence spending will hit two per cent of GDP by 2020/21.

University fees are expected to hike by up to $3000 and students will be forced to pay back loans earlier.

He was expected to scrap the four-year Medicare freeze for Global Positioning System and fully fund the NDIS.

The tax will reportedly raise $6 billion over four years.

A housing affordability package includes a "first home super savers scheme" that will provide a tax cut for those trying to get a deposit together.

Downsizers will get special exemptions from superannuation rules to allow them to put lump sums into their retirement savings from selling their family home.

That's expected to generate 60,000 jobs in the long term.

The government will also tackle supply issues, unlocking Defence land in Maribyrnong, in Melbourne's west, for 6000 new homes, and crack down on foreign buyers of new developments.

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

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