Housing, banks and integrity measures
This year's Federal Budget focuses on housing affordability,
banks and integrity measures. It is a thoughtful Budget, which
attempts to address perceived inequities in the tax system and
seeks to fund significant infrastructure projects and the National
Disability Insurance Scheme (NDIS).
Banks
Authorised Deposit-taking Institutions (ADIs)
with licensed entity liabilities of at least $100 billion will be
required to pay a new levy from 1 July 2017. The levy is expected
to raise a staggering $6.2 billion over the forward estimates
period. The levy will be calculated at an annualised rate of 0.06%
on an ADI's licensed entity liabilities (such as corporate
bonds, commercial paper, certificates of deposit and Tier 2 capital
instruments). The levy will not apply to Tier 1 capital and
deposits. It seems likely that the levy will be deductible for tax
purposes (rather than resulting in a credit to the bank's
franking account). This
