The Budget has been received with intense analysis and criticism by different sectors throughout Australia, while embraced by many others.
Morrison says this Budget was created with the intention of strengthening Australia’s economic growth.
“This Budget makes the right choices for Australians who are working hard to secure the better days ahead for themselves and their families, and is based on the principles of fairness, security and opportunity,” said the Treasurer.
The Government’s forecast deficit for 2017-2018 is $29.4 billion, but they are projecting a return to surplus of $7.4 billion in 2020-2021.
To learn more about all the features of this Federal Budget, see Canstar’s summary.
As you think over the Budget and consider how it will affect you, it may be interesting to review the following reactions from industry experts, finance media commentators, and opposing government officials.
What are finance media personalities and economists saying?
Some of the top financial commentators have shared their opinions of the new Budget.
Money Magazine Editor Effie Zahos was featured on The Today Show talking about the ‘winners’ and ‘losers’ of the Budget.
Ms Zahos says the downsizing incentive for older Australians could allow people to go into aged care as they get older thanks to the boost of that $300,000 into their super from the sale of their home.
— The Today Show (@TheTodayShow) May 9, 2017
Nine Network’s Finance Editor Ross Greenwood says this year’s Budget showed a significant change in direction for the Australian economy.
Mr Greenwood says the strategy of Malcolm Turnbull and Scott Morrison has moved away from cuts, and is focusing more on the growth of the economy and maintaining Australia’s AAA credit rating, even if that involves going into debt for a few years before we return to surplus.
Mr Greenwood also stresses that the government’s Budget plan relies on wage growth, which means more tax revenue for them to work with.
— 9Finance (@9Finance) May 9, 2017
David Koch told The Daily Telegraph that this Budget is “among the better ones” he has seen over the years.
In terms of the housing affordability package laid out in the Budget, Mr Koch says they have been “quite smart” with the program for first home buyers, as well as in plans to free up more Government land to increase the supply of housing and ease prices.
Nine’s Political Editor Laurie Oakes, as always, delivered his verdict on the Budget this year.
Speaking to Nine News, he reflected on the bitter response experienced by many from the Joe Hockey Budget in 2014, and Malcolm Turnbull’s focus on “fairness” in this new budget.
“The tone of tonight’s Budget – if not quite warm and cuddly – was definitely optimistic, with plenty of assurances to the punters that the Government understands their problems,” said Mr Oakes.
— Nine News Australia (@9NewsAUS) May 9, 2017
ANZ Chief Economist Richard Yetsenga says the budget is surprisingly ambitious, with a “creative search for revenue” likely to be felt by the consumer.
“Indeed, how the push for new revenue marries with the view of an uninterrupted path to trend growth will be a big challenge,” said Mr Yetsenga.
“While signs of improved conditions offer comfort, much of the forecast pins its hopes on the back of rising tax revenue rather than disciplined spending.”
He advises that a reassessment of the Government’s economic plan will be required “should revenues disappoint”.
What is the Opposition saying?
As could be expected, the Opposition has had plenty to say following the release of the new Federal Budget last night.
Some of the key points outlined by various ALP representatives are:
- They view the Budget as unfair, labelling it a “Budget for millionaires and multinationals”, not for the average Australian family. This criticism comes from Shadow Treasurer Chris Bowen MP and Shadow Minister for Finance Jim Chalmers MP, who say Prime Minister Malcolm Turnbull has “chosen big business over middle and working class families”, “multinationals over Medicare”, and “big business over battlers”.
— 7News Yahoo7 (@Y7News) May 9, 2017
Speaking to Laurie Oakes on Channel Nine yesterday, Chris Bowen MP said the Coalition is “failing at every turn”.
“Whether it’s health where they fall short in saving Medicare, whether it’s education where they fall woefully short of our policy, whether it’s housing affordability where their package is a joke,” said Mr Bowen.
The Shadow Treasurer also criticised the decision not to immediately lift the Medicare Rebate Freeze, with Scott Morrison instead announcing it will be gradually removed over 4 years.
What are the big banks saying?
Who doesn’t like the new Budget? Big banks.
Australia’s five biggest banks will be hit with a new tax, which Scott Morrison says will secure $6.2 billion to “support Budget repair”.
The Australian Bankers’ Association (ABA) has expressed their displeasure with this levy on large banks, with Chief Executive Anna Bligh saying the tax will “hit Australians by hurting investment and could have unintended consequences”.
Ms Bligh also commented that it was “particularly disappointing” that there was no consultation with the banking industry on this matter.
— Sky News Australia (@SkyNewsAust) May 10, 2017
When it was suggested to Mr Morrison yesterday that the banks might be unhappy about the tax, he told them to “cry me a river”.
Customer Owned Banking Association (COBA) CEO Mark Degotardi says the levy on big banks will go some way to reducing an unfair banking system.
“The proposed new levy on major banks is an attempt to reduce the unfair funding cost advantage enjoyed by the biggest players, and COBA has put forward similar proposals in the past as a temporary measure,” said Mr Degotardi.
For those caught breaking the rules, the Government has also unveiled an investigation into the financial system called the Banking Executive Accountability Regime.
What are the housing and superannuation industries saying about the Budget?
First home buyers to benefit
In this Budget the Federal Government has finally introduced an initiative to give first home buyers a foot in the door.
The First Home Super Saver Scheme will allow people to make voluntary contributions of their income to their superannuation accounts to be able to save for a house deposit, at a lower tax rate than normal.
Morrison says these contributions can be made “over and above their compulsory superannuation contributions“.
Housing Industry Association (HIA) Deputy Managing Director Graham Wolfe welcomes this move, saying it is an important step by the government in addressing the key concern for many Australians of housing affordability.
“There are no simple solutions, but providing well targeted assistance to help first home buyers save for their first home and to providers of community housing through the ‘National Housing Finance and I