Published: Sat, May 20, 2017
Economy | By Annette Adams

Foreign property investors hit hard in Australian budget

Foreign property investors hit hard in Australian budget

'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.

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.

If that happens budget deficits shrink from $37.6 billion this year to near balance in 2019-20 and a $7.4 billion surplus the year after.

The government is also planning to impose a 50% on foreign ownership in new property developments, which the government sees as a way of "increasing the housing stock for Australian purchasers".

On the government's move to hike the Medicare levy, he suggested the move would not cover the full cost of either the health system or the National Disability Insurance Scheme.

The Turnbull Government is starting afresh from Tony Abbott's horror 2014 budget, vowing to make the "right choices" for Australia.

"We've all heard the media speculation this week that Federal Treasurer Scott Morrison may make some small and belated attempt to begin to fix the damage of the 2014/15 slash and burn Abbott-Hockey Budget, but the only outcome acceptable to Queenslanders will be full restoration of funding", the Minister said. There will be a drug testing trial for 5,000 new welfare recipients.

Spending will be A$34.6 billion (S$35.8 billion) in 2017-18, with plans to lift spending to 2 per cent of gross domestic product by 2020-21.

Employers will pay an annual levy of up to AU$1,800 ($1,322) for every foreign worker they employ on a temporary visa.

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

Morrison repeated the government's stance that the main problem with housing affordability was that supply had not kept up with demand, and the government will be releasing some government land - starting with 127 hectares of surplus Defence land in Maribyrnong in Victoria (Bill Shorten's electorate), which the government estimates could support up to 6000 new homes. It would mean that it would be taxed at 15% rather than the marginal tax rate, and when the money is withdrawn, it is taxed at marginal tax rates less a 30% offset.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 will get special exemptions from superannuation rules to allow them to put lump sums into their retirement savings from selling their family home.

The government will pour an extra $75 billion into infrastructure spending over the next decade with much of it going to big nation building projects. The flagship project is an A$8.4 billion Melbourne to Brisbane inland railway to begin construction next financial year. Contrary to longstanding rejection by the Government, it has altered negative gearing provisions to bar tax refunds for travel to investment properties, and for removable purchases such as dishwashers.

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