Australia's big banks have given a big thumbs down to Scott Morrison's plans to slug them with a new levy, while measures to guarantee funding for the National Disability Scheme received a big tick.
A key piece of Mr Morrision's second budget was a new levy on the nation's big five banks that will reap the government $6.2 billion, while wage earners face a 0.5 percentage point rise in the Medicare levy to help fund the $21 billion NDIS.
Disability lobby groups applauded the guaranteed funding for the NDIS, but Australian Bankers Association boss Anna Bligh branded the levy a "political tax grab to cover a budget black hole" and said the tax would hurt investment.
"If the government thinks major banks can afford to pay a new tax, it should make every company in Australia which earns more than banks wonder who's next," she said.
Consumer group Choice welcomed the levy, saying while it was bad for banks it was good for consumers, while the Australian Taxpayers' Alliance said any cost imposed on a bank would be passed on to customers.
Australian Chamber of Commerce and Industry chief executive James Pearson was concerned the government was relying on more taxes to help return the budget to surplus by 2020/21.
"The increase to the Medicare levy amounts to an $8.2 billion income tax increase across four years," he said.
However disability support groups were thrilled by the guaranteed funding through the higher Medicare levy.
"For those still yet to enter the NDIS, they can go to bed tonight knowing that support is on its way," Australian Federation of Disability Organisations boss Ross Joyce said.
National Disability Services boss Ken Baker said: "In 2013, parliament approved an increase to the Medicare Levy to partly fund the NDIS, without dissent, and it was met with great support by the general public. The disability community looks forward to parliament taking the same approach this time."
Business groups cautiously welcomed the government's projections for a return to surplus of $7.4 billion within four years, with the Business Council of Australia warning if activity faltered, "we may be left with a house of cards".
CPA Australia welcomed the $70 billion infrastructure package but was concerned the government's economic growth predications were "overly optimistic".
"We're concerned we may be falling back on our 'lucky country' mentality and hoping that world growth will be sufficient to see us through," CPA said.
Healthcare groups largely backed the gradual lift in the Medicare rebate freeze for doctor visits, but the AMA would have preferred a lift from July 1.
"The staged lifting of the freeze in the budget does mean that many families on average incomes still face the risk of co-payment increases they can ill afford for at least another year," Consumers Health Forum chief Leanne Wells added.
The government's crackdown on welfare cheats and increases in the cost of degrees for university students were attacked by the ACTU, which accused the government of waging war on vulnerable people at a time when companies were getting tax breaks.
ACTU President Ged Kearney said the budget effectively "robs Peter to pay Paul".
Reaction to the government's plan to allow first home owners put up to $30,000 into their super funds to help save for a home deposit were mixed.
Choice cautiously welcomed the move, saying it would have a limited effect because it was capped at $30,000.
Industry Super Australia said the proposal was "deeply flawed".
