Growth to slow this year, but to pick up to 3% annual over the next two years, debt to continue rising and worryingly, no improvement in wages for much of the next four years.
Opposition frontbencher Tony Burke said the latest budget showed the second stage of tax cuts were not affordable.
'There are only four countries in the OECD with tax rates higher than us now, and that number has been shrinking, ' Mr Morrison said.
"This represents an additional and fair contribution from our major banks, is similar to measures imposed in other advanced countries, and will even up the playing field for smaller banks", he said. Find out where the money is going in Australia's Federal Budget 2017.
He said Labor would support the government's $6.2 billion levy on banks. This will cover nearly half of the "zombie" savings measures the Turnbull Government has been unable to get through the senate.
Australian Bankers' Association chief executive Anna Bligh called the tax a "not a well thought out policy response to a public interest issue".
This is expected to raise $200 million a year by 2020-21.
Bank executives will also face tougher penalities for misconduct under a tough new new Banking Executive Accountability Regime, which will require all executives to be registered with the regulator.
The government has also asked Australia's competition watchdog to undertake an inquiry on residential mortgage pricing until June 30, 2018.
The 2017-18 budget reveals an "open banking" scheme meant to give customers greater access to and control over their banking data.
Universities will get 2.5 percent less government funding over the next two years and students will have to pay more for their degrees.
The budget deficit is expected to narrow to AUD29.4 billion in 2017-18 from AUD37.6 billion in 2016-17.
Ian Narev, CEO of the CBA, noted the lack of detail about the levy and the absence of any consultation with the banks.
"Mr Turnbull is asking for battlers on $50,000 and $60,000 a year to increase their income taxes but yet he wants to give away a tax cut to millionaires and he wants to give away $65 billion to large corporations", he said.
So far Labor has not ruled out backing the trial to drug test 5000 new welfare recipients, although Mr Shorten did not seem overly sold on it.
It's a measure Tony Abbott was unable to lock in during his time as Prime Minister.
But in a bid to recover from Labor's campaign on Medicare, there will be a $10 billion "reinvestment" in health funding.
That amounts to $2.2 billion over the next four years.
The Treasurer was unrepentant when speaking about the new tax, which he admits will be used for budget fix after he was forced to dump more than $13 billion of "zombie" savings measures from the 2014 federal budget that had failed to pass the parliament.
When news of the levy leaked on Tuesday ahead of the budget, investors wiped A$14 billion from the value of stocks.
The hard work is done for now; it's time for them to begin the hard sell.
He also proposed the establishment of a new TAFE fund to improve training.
Mr Morrison is happy to lay the blame for tax rises on the Upper House, calling them a senate tax. "But by adopting a comprehensive approach, by working together, by understanding the spectrum of housing needs, we can make a difference".
Contributions and earnings will be taxed at 15 per cent rather than at marginal rates.
The biggest blow for offshore property buyers will be the change to their capital gains made on property and their strategy of holding properties without occupying them.
It's estimated to create 16,000 jobs at the peak of the construction phase.
The Western Sydney airport is getting $5.3b over ten years.