Australia plans major spending plus surplus in 3 years

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Seeking to unlock housing stock, the government is also encouraging older people to downsize by giving tax breaks if they funnel proceeds from selling their home into their pension funds.

Mr Shorten says independent costings show his plan to hit the rich with a Medicare hike will deliver more revenue than the government's plan over the medium term without burdening families earning modest incomes.

"The banking levy effectively represents double-taxation of some of Australia's most successful companies, which already pay A$11 billion in company tax each year, employ about 130,000 Australians and contribute to the superannuation (pensions) of millions more", she said.

Mr Turnbull and Mr Morrison will hope Tuesday night's Budget proves to be a turning point for a government that has struggled in the polls since last year's election.

Where taxpayers money is spent
Where taxpayers money is spent. Les Hewitt Budget papers

"That's why the Government is focused on simplifying small business paperwork and committed to cutting red tape costs by $1 billion every year when we were elected". Diron added that the removal of the zombie measures "enhances the transparency and predictability of budget outcomes, a credit positive".

Elsewhere, the scientific research sector lamented a lack of funding, while health experts said the government's commitment to public healthcare was "essential".

"The ACCC will be keeping a very close eye on that", he said.

"Contrary to the government's claim that the tax will only be levied on banking liabilities, the reality is that it will affect the entire banking system", Bligh said in a statement.

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The Treasurer said an extension of the rules involving foreign partnerships or trusts, plus new tax integrity measures recommended by the government's Black Economy Taskforce, would help raise a further $4 billion over the forward estimates.

According to Deloitte, the theme of this new Budget is to "bury the ghosts of Budgets past" - an appropriate assessment of this new spending spree, as it's been playfully dubbed in the media and social networks as a "Labor Budget" delivered by a Coalition government.

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".

Chief executives of Commonwealth Bank, National Australia Bank, ANZ and Westpac all labelled Mr Morrison's levy a "bank tax", with three of the four explicitly saying the cost will be passed on.

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In a bid to give Australians a more simple, accessible and affordable one-stop shop to resolve disputes and acquire binding outcomes from banks and financial institutions the Australian Financial Complaints Authority will be established. Underlying inflation is stuck below the RBA's target band of 2 to 3% with wages crawling at their slowest pace on record.

Regarding debts and deficits, Deloitte says the government still expects this Budget balance to "head back to greener pastures". The flagship project is an A$8.4 billion Melbourne to Brisbane inland railway to begin construction next financial year.

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