Budget's big bank levy could open the door for fintech lenders

Paterniano Del Favero
Mag 19, 2017

Among revenue boosting measures was a six-basis point levy on the liabilities of banks with liabilities of more than A$100 billion from July 1, a move that will help the government raise A$6.2 billion through 2020/21 to aid budget fix.

If that happened Australians would turn around and say the banks were greedy.

The Treasurer also warned the banks not to try and pass the new tax on to their customers, saying they had no right to do so because it did not apply to mortgages or deposit accounts.

On Thursday night, federal senator Derryn Hinch outlined details of a letter he wrote to the AFP asking for an investigation.

Pushing up personal income tax by lifting the Medicare levy to 2.5 per cent of personal income is at odds with Mr Morrison's previous message that there is a spending problem not a revenue problem.

The conservative government of Prime Minister Malcolm Turnbull has blamed a lack of supply for sky-rocketing house prices and on Tuesday announced setting up a A$1 billion National Housing Infrastructure Facility to help develop new homes.

Bank executives will also face tougher penalities for misconduct under a tough new new Banking Executive Accountability Regime, which will require all executives to be registered with the regulator.

"They're hugely profitable and they're not very competitive and a lot of consumers are getting ripped off", he said.

$216.6 million over four years cut from funding for aged care - a cut of around $1670 per resident per year.

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.

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.

He said that it now appeared "no-one now is talking about paying back debt".

As for the levy on banks: "We're not going to stand in the way of it". It would mean that it would be taxed at 15% rather than the marginal tax rate, and when the money is withdrawn, it is taxed at marginal tax rates less a 30% offset.

Downsizers over the age of 65 will be able to make a non-concessional contribution of up to $300,000 into their super fund from selling the family home.

The Commonwealth will scrap the National Affordable Housing Agreement but will still provide $1.3 billion to the states and territories under new arrangements to boost the stock of affordable housing.

The initiative is expected to facilitate more than $15 billion in Government asset sales and unlock $17 billion in infrastructure spending.

An inland rail linking Melbourne and Brisbane will get an $8.4 billion, with the project set to begin in the next financial year. The airport is expected to create 60,000 jobs in the long term and is projected to be complete by 2026.

"Third, Snowy Hydro would have to remain in public hands".

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