Cash Thrown at Economic Woes
October 19th, 2008
Cash thrown at economic woes
(taken from www.news.com..au) By staff writers and wires October 14, 2008 12:29pm
- Rudd unveils $10.4 billion stimulus package
- Pensioners and carers get lump sum payment
- $1.5 billion for first homebuyers
KEVIN Rudd will deliver a one-off Christmas bonus to pensioners and low income families of over $1000 and triple the first home buyers grant for newly constructed homes to kickstart the economy.
The Prime Minister has outlined a $10.4 billion stimulus package in light of the global financial crisis today that will include a boost to family payments for 3.8 million eligible Australian children, The Australian reports.
The strategy includes five key measures, Mr Rudd said.
- $4.8 billion for an immediate down payment on long term pension reform;
- $3.9 billion in support payments for low and middle income families;
- $1.5 billion investment to help first homebuyers buy a home;
- $187 million to create 56,000 new training places in 2008/09;
- Accelerate the implementation of the Government’s three nation building funds and bring forward the commencement of investment in nation building projects to 2009.
Pensioners and carers
Single pensioners will receive a lump sum payment of $1400 while pensioner couples will receive $2100.
People receiving the carers allowance will also receive $1000 for each eligible person in their care.
First homebuyers
First homebuyers will be eligible for grants of up to $21,000 designed to stimulate housing activity.
The scheme will be time limited. All contracts entered into by June 30 next year will be eligible for the new assistance.
The payment under the first home buyers scheme will be doubled from $7000 to $14,000 and first home buyers who buy newly-constructed home will receive an extra $14,000 taking their total grant to $21,000.
The Government will invest about $1.5 billion in the housing market over 2008/09 and 2009/10 through this initiative.
Money for kids
The Government said about 3.9 million Australian children will receive a $1000 one-off benefit from December 8.
Families who receive Family Tax Benefit (A), families with children who receive the Youth Allowance, Abstudy or a benefit from the Veteran Children’s Education scheme will be eligible.
Worst crisis since Depression
Mr Rudd said the Economic Security Strategy would strengthen the
"The global financial crisis has entered into a new, dangerous, and damaging phase," he told reporters in
"That’s why the Government has decided to act decisively and early on the question of this economic security strategy for the future.
"(It’s) decisive action, responsible action, early action, all in
Mr Rudd said the package would support growth in the domestic economy and provide practical support for households.
He indicated he believed the Government could also maintain a surplus, despite spending almost half of the $21.7 billion Budget surplus on the stimulus package.
