PM urges boycott if banks shirk tax

LABOR will today announce it opposes lifting the temporary budget deficit levy, labelling it a tax cut for millionaires.

Opposition Leader Bill Shorten is expected, in his Budget reply, to slam the Turnbull Government’s plan to repeal the 2 per cent tax on those who earn $ 180,000 while at the same time pushing

The major banks will pay an extra $ 6.2 billion in taxes from July 1 over four years to pay for a crackdown on customer rip- offs.

As part of the plan, the Australian Prudential Regulation Authority would be able to vet bank executives’ backgrounds and incentives they are paid.

It would also have the power to immediately remove bad executives.

The regulator could fine employers up to $ 200 million if their staff are caught ripping off customers. up the Medicare levy on low and middle- income families.

“This is the Liberal version of tax and spend,” he will say. “Only this Prime Minister could vote to give himself and his frontbench a personal tax cut, on the same day that 700,000 Australian workers will have their penalty rates cut.”

The budget repair levy was introduced in 2014 as a tax hit for those in the top tax bracket.

But Labor is expected to back the Government’s $ 6.2 billion levy on the biggest banks, as well as support housing affordability changes in tightening negative gearing and tax concessions for property owners living overseas.

KYLAR LOUSSIKIAN FIRST- home buyers are unlikely to take up the new incentive to help save deposits quickly after a previous scheme failed miserably, industry experts say.

The Government has been criticised for the plan to allow first- time buyers to save a total of $ 30,000 each inside super accounts and attract the tax advantages of superannuation.

Mortgage Choice boss John Flavell welcomed the scheme but said it could fail.

“At best, a couple who salary sacrifice a portion of their income into their super might be able to scrape together enough money to pay for the stamp duty charged in … Sydney and Melbourne,” he said.

SOPHIE ELSWORTH