This was emailled to me today by my sister-in-law…
WORKING families, primary schools and workers earning less than $100,000 are the big winners in a $42 billion emergency mini-Budget unveiled in Canberra today.
Facing the worst economic circumstances since the Great Depression, the Federal Government will move to keep as many people in work as possible and encourage the population to spend in the coming months.
The majority of Australia’s 21 million people will receive a lump-sum payment from the Government as part of the unprecedented stimulus package.
But the $42 billion move will send the nation’s Budget spiralling into deficit to the tune of $22.5 billion in 2008-09, and $35.5 billion in the following financial year.
“These are not normal times,” Treasurer Wayne Swan said today, as he and Prime Minister Kevin Rudd unveiled the plan in Canberra.
"Extraordinary times call for extraordinary macroeconomic policy measures.
"The plan is a rapid response to deteriorating global economic conditions.
“Doing nothing is not an option.”
The Government insists the package is necessary to ensure Australia is shielded from the full effects of the worldwide economic meltdown. It says the package will boost the economy by around 1/2 per cent of GDP in 2008-09 and around 3/4 to 1 per cent of GDP in 2009-10.
The plan will sustain up to 90,000 jobs over the next two years - however, Treasury modelling suggests the jobless rate will rise to 7 per cent by June 2010.
Two-thirds of the package ($28.8 billion) will be dedicated to building prosperity - such as school capital works, additional housing and business incentives.
The final one-third of the package ($12.7 billion) will be made up of lump sum payments to Australian taxpayers, families, students and drought-affected farmers, to be paid from early March, with the idea of getting money flowing into the retail economy as quickly as possible.
Key elements of the package will include:
PAYMENTS of $950 to Australian taxpayers who earned less than $80,000 in 2007-08, tapering to $650 for income earners between $80,000 and $90,000 and $300 for taxpayers earning $90,000 to $100,000.
A $950 once-off bonus to 1.5 million families who are eligible, as of today, for Family Tax Benefit B.
A $950 once-off bonus to 1.2 million families per school age child, as long as they are eligible for Family Tax Benefit A.
A $950 once-off bonus to students and other income support recipients to assist with education costs.
$12.4 BILLION over three years to fund the construction of assembly halls, new libraries, indoor sports centres and performing arts centres for primary schools.
$6 BILLION for new public and community housing, to be built by December 2010.
$2.7 BILLION for free ceiling insulation and installation for Australian homeowners.
$2.7 BILLION in temporary tax breaks to small and other businesses.
$890 MILLION for black spot road funding, boom gates and community infrastructure.
Further good news is on the way for Australian homeowners today, with the Reserve Bank of Australia to slash interest rates for a fifth consecutive time when it meets today.
Economists are tipping a rate of 1 per cent or higher.
