Australia treasurer promises fair budget that reins in debt

"This is a great Budget for Australian Conservatives because it proves definitively, that the Coalition is now just another faction of the Labor Party", he told Sky News.

Mr. Morrison said $6.2bn (US$4.6bn) would be raised over the next four years by the new levy on the big five - ANZ Bank, Westpac, National Australia Bank, Commonwealth Bank and Macquarie. "Banks will also be held to account if they try and hide misconduct by executives with new mandatory reporting requirements".

Peter Costello has criticised the second Scott Morrison budget.

MR IAN VERRENDER, business commentator on the ABC News website.

The budget forecasts wages growth - which has been around 2% - will increase to as much as 3.75% by the end of the budget period.

Banks with liabilities of more than A$100b, which is now the big four lenders and Macquarie, will be slugged with a levy of 0.06 per cent on those liabilities each year from July 1.

"This budget is about making the right choices to secure the better days ahead", Mr Morrison told parliament on Tuesday.

"It is honest about our challenges and opportunities".

"To support growth we choose to invest in building Australia, rail by rail, runway by runway and road by road".

Until now, employers have contributed one to two per cent of their payroll to training if they employ foreign workers and these requirements have been hard to police, Morrison said.

Most Australian workers will pay higher taxes from 2019, while the big banks are hit with a $6.2 billion levy, as the Turnbull government seeks to pay for disability insurance and balance the books.

The government examined the half per cent allowance already in the Medicare levy to help fund the NDIS and made a decision to add another half point - lifting the levy to 2.5 per cent total from July 2019.

Schools to receive an extra A$18.6 billion over 10 years, but university students to face higher fees ranging from A$2,000 to A$3,600 for a four-year course.

Among other things, the Australian government earmarked 5.3 billion Australian dollars (3.6 billion euros, $3.9 billion) for the construction of a second worldwide airport in Sydney, slated to be ready by 2026.

"Our banks pool 30 billion Aussie dollars in profits annually and this is 1.5 billion Aussie dollars in tax (per year for four years)", Morrison said.

Among other measures, defense spending is expected to be hiked while the Australian Federal Police will get more than AU$300 million (US$220 million) in extra funding to help counter growing security threats, funded by cuts to foreign aid.

The government is also restoring the pensioner concession card to people that were hit by the pension assets test change this year. Currently, the withholding tax is only taken when a foreigner sells a property worth $2m or more.

However, the screws will be further tightened on foreign investors by cutting their access to the main residence capital gains tax exemption when they sell a property, and slapping a $5,000 levy on any who fail to occupy or lease their property for at least six months.

The crackdown on foreign property owners comes amid growing concerns about housing affordability following a surge in property prices.