Australian Economic Stimulus Package, including cash handouts.

[El Freako]

$42 billion spent to kickstart economy with Budget going into deficit and handouts for many

AUSTRALIANS' wallets will get a significant cash injection with handouts from the Government and reduced mortgage repayments.

Both the Government and the Reserve Bank acted decisively today with measures to counter the growing threat of a recession.

The Federal Government unveiled a $42 billion nation building and employment plan aimed at retaining 90,000 jobs over the next two years.

At 2.30pm (AEDT) the Reserve Bank cut the official interest rate to 3.25 per cent, the lowest rate in 35 years.

Billed as a "rapid response" to the deteriorating global economic conditions, the centrepiece of the Government's plan is $28.8 billion of spending on schools, housing, energy efficiency in homes, community infrastructure and roads, and support to small business to be delivered mostly in 2009-10 and 2010-11.

The remaining third of the plan is an immediate injection of $12.7 billion in one-off bonus payments of $950 each for low- and middle-income households and individuals through five bonuses to be paid in the next few weeks.

It means 8.7 million workers earning $100,000 or less will receive a lump sum payment of up to $950 each from April.

About 1.5 million single-income families will also receive the payment, provided they receive Family Tax Benefit Part B, in the fortnight beginning March 11.

But the bad news is the unemployment rate is predicted to rise to 7 per cent by mid-next year, up from 4.5 per cent in December.

The package includes:

- $12.7 billion for immediate one-off payments to working Australians, families with school-age children, farmers, single income families and for those undergoing training;

- $14.7 billion to be invested in school infrastructure and maintenance and bringing forward funding for trade training centres;

- $6.6 billion for to increase the national stock of public and community housing by about 20,000;

- $3.9 billion to provide free insulation to 2.7 million homes and solar hot water rebates;

- $890 million to fix regional roads and blackspots, to install railway boom gates and for regional and local government infrastructure;

- $2.7 billion small and general business tax break to provide deductions for some equipment purchases before the end of June 2009.

Budget into deficit

The Budget is now expected to sink into a $22.5 billion deficit in the 2008/09 financial year, a massive deterioration from the $5.4 billion surplus projected, and deepening into deficits of over $30 billion in the following two years.

Gross domestic product (GDP) is now expected to grow by just 1.0 per cent in the 2008/09 and by only 0.75 per cent the following year, compared with respective forecasts of 2.0 per cent and 2.25 per cent made in November.

Students, business also benefit

The Government will also provide a one-off $950 training and learning bonus for eligible students and people outside of the workforce returning to study to help with the costs of education and training.

The package, which is virtually a mini-budget in all but name, is the second major economic stimulus package announced by the Government since the $10.4 billion economic security strategy released in October.

It takes the total amount spent by the Government on stimulating the economy since September to $88.7 billion, including bank deposit guarantees, the car industry package, as well as investment in residential-backed mortgage securities, local government, infrastructure projects, and on the states through the Council of Australian Governments (COAG).

The statement said while the nation was in a better position than most other countries to weather the global recession, Australia could no longer "resist the pull of global economic forces".

The infrastructure spending in this package involves a major roll-out of $890 million to fix accident black spots, install rail boom gates, repair regional roads and build community infrastructure such as libraries, town halls, community centres and sport centres.

Schools around Australia will benefit from $14.7 billion over three years to construct school halls, libraries, indoor sports facilities and performing arts centres.

The package includes funds of between $250,000 and $3 million for primary schools for capital expenditure projects and $1 billion for the construction of science and language laboratories in secondary schools, while all schools will be able to apply for extra funding of between $50,000 and $200,000 for minor maintenance and infrastructure.

Public and community housing will receive a $6 billion boost to allow for the construction of about 20,000 new homes to be completed by December 2010.

Small business also gets $2.7 billion in extra tax breaks aimed at supporting jobs.

http://www.news.com.au/business/story/0,27753,25001488-462,00.html

 

[El Freako]

$42bn package to head off recession

TREASURER Wayne Swan has unveiled a $42 billion Nation Building and Jobs Plan to cushion the effects of the global economic crisis ahead of a major cut in interest rates expected later this afternoon.

The plan forms a double-pronged, electorally friendly strategy designed to shore up employment in the short term and complement long-term infrastructure development.

But the package cannot prevent a more than $40 billion turnaround in the budget, with a budget deficit of $22.5 billion forecast for this financial year.

Unemployment will also climb from the 4.3 forecast in the budget last year to 5.5 per cent by June this year.

The Government says the initiatives in the package will boost economic growth by around 0.5 per cent of Gross Domestic Product this financial year and between 0.75 and 1 per cent in 2009-10.

“Without this significant and timely policy stimulus, Australia would face a more severe slowdown than forecast,” the Government says.

MAIN POINTS
The federal government's $42 billion Nation Building and Jobs plan is aimed at stimulating the economy and supporting up to 90,000 jobs during the next two years.
It includes:

* $14.7 billion to be invested in school infrastructure and maintenance and bringing forward funding for trade training centres;
* $6.6 billion to increase the national stock of public and community housing by about 20,000 new homes;
* $3.9 billion to provide free insulation to 2.7 million homes and solar hot water rebates;
* $890 million to fix regional roads and blackspots, to install railway boom gates and for regional and local government infrastructure;
* $2.7 billion small and general business tax break to provide deductions for some equipment purchases before the end of June 2009;
* $12.7 billion for immediate one-off payments to working Australians, families with school-age children, farmers, single income families and for those undergoing training.

It estimates the plan will support up to 90,000 jobs over the next two years.

But predictions for employment remain gloomy, with joblessness forecast to rise to seven per cent by June 2010.

“The global commodity boom, which has provided significant stimulus to the Australian economy over recent years, has come to an end,” the Prime Minister and Treasurer said in a statement.

“No country will escape the impact of the global recession which is causing falls in growth, job losses and budget deficits right across the world.

“The weight of the global recession is now bearing down on the Australian economy. Economic growth is slowing and employment will weaken.”

The Government says its response will strike the right balance between supporting growth and jobs now and deliver lasting investments needed to strengthen the economy into the future.

For every dollar spent providing immediate stimulus to the economy now, the Government says it has invested more than two on long-term investments to generate future growth.

As part of its long-term measures, the Government will build or upgrade libraries and halls in every primary school, special school and Kindergarten to Year 12 school across Australia. It will build 500 new science laboratories and language learning centres in schools that can demonstrate need and provide up to $200,000 to every Australian school for maintenance and renewal of school buildings.

The Government will install ceiling installation free of charge in 2.7 million households.

It will build 20,000 new social housing dwellings, fund maintenance to around 2500 vacant social houses and construct 802 new Defence Houses around Australia.

Small business and other general businesses buying eligible assets will benefit from a 30 cent in the dollar investment tax break.

The Government will spend $890 million to fund 350 additional projects under the Black Spot road safety program and the installation of around 200 new boom gates at high risk level crossings, as well as local community infrastructure and maintenance on Australia’s national highway.

The Government hopes a series of five targeted bonuses for low and middle income households will provide an immediate stimulus to the economy and jobs.

The payments are a Tax Bonus for Working Australians of up to $950 for every eligible worker earning $100,000 or less that will support up to 8.7 million people, a $950 Single Income Family Bonus to support 1.5 million families with one main income earner and a $950 Farmers Hardship Bonus for around 21500 drought affected farmers and farm dependent small business owners receiving exceptional circumstances related income support.

Some 2.8 million children will benefit from a $950 Back to School Bonus, while a Training and Learning Bonus will be paid to students and people outside the workforce returning to study to help with the costs of education and training.

The Government says the plan will build on the stimulus measures already in place to support economic activity and jobs.

“The global recession, dramatic slowing in China and unwinding of the commodity boom has now wiped a total of $115 billion from budget revenues and pushed the budget into deficit,” the Prime Minister and Treasurer said.

A budget deficit of $22.5 billion, or 1.9 per cent of GDP, is now forecast for this financial year.

Yet the government says this compares favourably to the seven per cent average for advanced economies forecast by the GDP.

The government says it is taking action to return to surplus by holding real spending growth to two per cent a year and banking any increase in tax receipts associated with the economic recovery, while maintaining its commitment to keep tax as a share of the economy on average below the level it inherited.

But it is also leaving all options open for further action.

“The government will continue to monitor the economy closely and is committed to taking further steps to support growth and jobs if required,” the statement says.

http://www.theaustralian.news.com.au/business/story/0,28124,25002053-643,00.html

Hooray for the Milky Bar Kid I say... as long as I'm still eligible while living overseas. If not...

 

[tim290280]

Well they pissed away the last stimulus package, can't wait to see this one fail too.

Why anyone believed Rudd's hollow words is beyond me.

At least this package has some government works projects to keep things ticking. Tax cuts and govt works projects are how you should see out the hard times. Just can't go nuts and have a huge deficit. Only took Howard and Costello 12yrs to have a surplus, took Rudd and that other moron 1 yr to lose it all.

 

[Tech]

good to see that the US isn't the only country with an incompetent government.

 

[tim290280]

^^ We like to follow America's lead. We think that way we can just blame America for our woes when things go wrong.

 

[El Freako]

This just in...

Fact Sheet
2009 Updated Economic and Fiscal Outlook
$900 Tax Bonus for Working Australians

The Government will provide eligible taxpayers with a tax bonus payment of up to $900.

The bonus will be available to Australian resident taxpayers who paid net tax in the 2007‑08 financial year.

Taxpayers will not need to apply for the payment. The Australian Taxation Office will make the payment to taxpayers after determining eligibility for the 2007‑08 financial year.

Taxpayers must lodge their tax returns for the 2007‑08 financial year by 30 June 2009 to be eligible.

This measure will benefit around 8.7 million taxpayers.
Questions and Answers
Who will be assisted?

* Australian individuals who are residents for taxation purposes who have a net tax liability after considering their:
o tax payable;
o Medicare levy and Medicare levy surcharge;
o less any offsets or imputation credits they received for the year.
* The amounts of these elements are set out in the taxpayer's Notice of Assessment.

How much is the bonus?

* A $900 bonus will be paid to taxpayers with taxable income up to and including $80,000.
* A $600 bonus will be paid to taxpayers with income exceeding $80,000 to $90,000.
* A $250 bonus will be paid to taxpayers with income exceeding $90,000 to and including $100,000.

When and how will it be paid?

* Payments will begin being made from April 2009 for those who have lodged a 2007‑08 tax return.
* Taxpayers will not need to apply for the payment. The Australian Taxation Office will make the payment to taxpayers after determining eligibility for the 2007‑08 financial year. The vast majority of taxpayers have already lodged their tax returns.
* Taxpayers who have not already lodged their 2007‑08 income tax return should do so by the end of June 2009 to obtain the bonus.
* The bonus will be a direct payment to taxpayers including through electronic transfer or cheque. The bonus will not be used to offset a taxpayer's tax liability.

Why has the Government lowered the Bonus by $50?

* The Government has made some amendments to the Nation Building and Jobs Plan to ensure the passage of this important Plan. This includes making some changes to the size of some of the targeted payments – to ensure the package remains fiscally responsible.
* This adjustment balances the requirement for fiscal responsibility with the need to deliver fiscal stimulus now.
* This does not fundamentally alter the balance, the intentions, or the careful design of the package.

http://www.treasurer.gov.au/Display...09/004.htm&pageID=011&min=wms&Year=&DocType=3

 

[tim290280]

I just posted this in the fires thread. I'm disgusted with the way the government railroaded this legislation. Tacking on the fires relief funding to this stimulus package was a pathetic way of getting a sloppy piece of legislation, that needed a lot of debate and refining, through parliment.

K-Rudd should go back to hugging burns victims rather than trying to run the country. He is fucking up our future with this populist politics.


Although my partner and I know exactly what we are spending our $900 each on.

 

[Skeptic]

Im spending my $900 on a new clutch.

 

[tim290280]

I'm spending it on guitar building materials.

My partner wants a rowing machine.

 

[Tech]

I just posted this in the fires thread. I'm disgusted with the way the government railroaded this legislation. Tacking on the fires relief funding to this stimulus package was a pathetic way of getting a sloppy piece of legislation, that needed a lot of debate and refining, through parliment.

you'd really hate America.

they did the same type of thing with our "stimulus" package. except, our package was $800Billion....over 1,000 pages long (the paper stack was 8 inches thick)

congress had only hours to read it, then they had to vote.

 

[tim290280]

^^ Yeh not the same monies but definitely the same tactics and briefs.

I'm absolutely certain that the govts of Aust and USA are hiding stuff in these packages that they don't want scrutinised.

 

[Tech]

I'm absolutely certain that the govts of Aust and USA are hiding stuff in these packages that they don't want scrutinised.

oh of course. thats the whole point of these stimulus packages. for people in congress to fund their pet projects. (aka steal taxpayer money and get away with it)

they claim it will stimulate the economy, but anyone with half a brain can understand that it will only drive us further into debt.

 

[DriDDeRz]

nice, $900
i know where ill be spending that $$Bling bling$$

 

[El Freako]

Although my partner and I know exactly what we are spending our $900 each on.

I have a credit card debt that this will be perfect for!

 

[Hypocrisy86]

yall just gonna spend it on beer, weed and kangaroo feed

 

[tim290280]

^^ If we don't feed the kangaroos they aren't strong enough for us to ride to work. If they aren't strong enough to ride to work we could get attacked by drop bears on the way

 

[El Freako]

Fucking drop bears, they sure give you a headache.

 

[DriDDeRz]

I feed my kangaroo celltech and masstech and some of that dere roids


on the other hand,
ill put the money towards getting my car serviced and buy food and bodybuilding stuff

 

[El Freako]

I feed my kangaroo celltech and masstech and some of that dere roids

I just stick fire-crackers up mine's arse, its like Nos but cheaper.