Federal budget 2017: Scott Morrison makes promise of better days for government

In his speech to the House of Representatives tonight, Treasurer Scott Morrison announced that the government expects that the federal budget will return a $7.4 billion surplus in 2020-21 - a projection that is in line with that offered in the 2016-17 budget.

Meanwhile Deloitte Access Economics' Chris Richardson said there was some "excellent politics" within the coalition's budget, but was sceptical about the government's promise to return the budget, which is now at 29.4 billion AU dollars (21.6 billion USA dollars) to surplus by 2021.

"The only people paying more tax on July 1 are large banks and multinationals", Morrison said, adding that the government expected to raise A$4 billion this financial year in multinational tax from large public companies and corporates.

His key measures include a new tax on banks, expected to generate at least $1.5 billion annually, and an increase in the Medicare levy to 2.5% from 2% to pay for the National Disability Insurance Scheme.

Malcolm Turnbull insists his government's second budget is not about expunging Tony Abbott's much-maligned 2014 version, but about delivering for Australia.

Mr Turnbull said it was only fair the "most profitable banks in the world" were levied to help balance the nation's budget and similar measures were in place around the world.

Mr Morrison on Wednesday warned the banks, whose profits have soared in recent years, not to pass on the costs of the levy to their customers.

Mr Morrison has not said whether he still intends to return to surplus by 2021, a key pledge he made a year ago.

"[The Budget] recognised infrastructure as a tool to increase productivity, the importance of business case development to get the right projects off the ground, and the role of government in being able to drive economic growth", says Motto.

Some budget measures will have to run the gauntlet of the Senate, where crossbenchers rule the roost.

A new training fund will be launched paid for by a levy on businesses bringing in foreign workers.Businesses will have to pay an annual levy of $1200 -$1800 per worker per year to bring in people on the two-year temporary worker visa.

"Barriers to investment are not productive for the building industry or the economy more broadly; investment needs to be encouraged".

Labor will back the banks' levy.

It will also make underutilized and surplus land available for housing.

"Anything to be able to help deposits for first-home buyers is good", Mr Gunning said.

They can then withdraw that money and any associated interest at a lower tax rate of 15 per cent for use on a home deposit.

The Commonwealth will scrap the National Affordable Housing Agreement but will still provide $1.3 billion to the states and territories under new arrangements to boost the stock of affordable housing.

Treasurer Scott Morrison said it would reflect a government "living within its means" as he attempts to deliver a previously pledged surplus by 2020-21. The flagship project is an A$8.4 billion Melbourne to Brisbane inland railway to begin construction next financial year.

"We will no longer accept, as an excuse from repeat offenders, that the reason they could not meet their mutual obligation requirements was because they were drunk or drug-affected", Morrison said.

Western Sydney airport will get $5.3 billion over the next ten years.