Business groups have welcomed a focus on small business and infrastructure in the federal budget but are unimpressed by the government's inability to rein in spending.
The Australian Chamber of Commerce and Industry said it was pleased with an extension of instant asset tax write-off for small businesses, which will encourage them to buy more equipment.
It also backed the government's outline of funding support for a bevy of major infrastructure projects, but emphasised that longer term problems remain as the government is finding it difficult to cut spending.
"Tonight's budget shows the difficulty the government faces in getting spending under control," chief executive James Pearson said.
"We are pleased to see action to achieve a surplus by 2020/21, but are concerned that most of the improvement to the bottom line comes from more taxes rather than less spending."
In the four years to 2020/21, receipts are forecast to rise 1.6 percentage points while spending will reduce by only 0.2 percentage points, he said.
"The bottom line is that the Treasurer has opted to use the cover of faster economic growth, elevated commodity prices and innovative accounting treatments to fund significant new spending, rather than quicken the pace of fiscal repair," Australian Institute of Company Directors chief economist Stephen Walters said.
Australian Industry Group chief executive Innes Willox said an indirect lift in personal income tax through the Medicare Levy increase, the new major bank levy, and the steep hike in skilled visa charges underlined the need to substantially rework Australia's tax arrangements.
The banks say a levy on Australia's five largest lenders, expected to collect $6.2 billion over four years, will hurt bank shareholders and raise financing costs for consumers.
"This new tax is a direct attack on jobs and growth, not just a tax on the five largest banks," Australian Bankers' Association chief executive Anna Bligh.
"It is naive and misguided and has already sent the wrong signals to global financial markets about the strength and stability of our banking sector."
Ai Group also criticised the lack of "more immediate cost-relief measures" to tackle the east coast energy crisis, while the Insurance Council of Australia slammed the government for providing $7.9 million to the ACCC to monitor insurance pricing in far north Queensland.
