Australian Govt releases $42b stimulus package

The federal government has unveiled a massive $42 billion nation building and employment plan aimed at retaining 90,000 jobs over the next two years and insulating Australia against the worst of the global economic recession. Billed as a "rapid response" to the deteriorating global economic conditions, the centrepiece of the 72-page 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 through either the Australian Tax Office or Centrelink. 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. Farmers will also receive a $950 bonus payment, as will families eligible for FTB Part A who have a child at school. They will receive an immediate payment of $950 this week.

Source

How did they manage to leave out big business and the banks?

Seems like this is a pretty good stimulus plan that will benefit the average Australian.

Interesting to what Aussies members think of this plan.

reply to post by jam321

We will still have to pay for it, it's not like we have the money just lying around waiting in a savings account.
Rudd is just following suit from the rest of the puppets.

I'm not to sure if the country will benefit much by this, if so it may only be short term.
A few months ago The Government released a $10bn Stimulus pack which did absolutely nothing, most people used it to help pay off their owns debts. the government should have just given the money to the banks it would have been quicker, and that's where i think most of this money will end up, straight in the bank, to many people are paying off their debts, not much will go into the economy.
All the government seems to be doing is putting more of itself into debt, the Labor Government is usually good for that.

With this extra $42bn in the economy would we expect some sort of drop in the value of the AUD???



Edit Typo's



[edit on 2/2/2009 by wycky]

[edit on 2/2/2009 by wycky]

From what i can gather this is a much better layed out plan the the other Stimulus Packages i've seen thus far.

Actually giving money to it's citizens? And i thought government generosity had died.

I like they're plans for the schools and roads, hopefully they will be updating existing structures and not just building new ones.

Good post OP.

~Keeper

Rudd has been in denial about the Aussie economy shrinking and I guess this will be his last chance to prevent 2 successive quarters in the negative.

This is scary.

As an Australian worker that earns less than $100,000, I am so used to the Government making excuses to take money from me, I find this hard to comprehend.

I'll believe it when it's in my account. Until then, I'm expecting a technicality to arise meaning I somehow won't be eligible. Handouts like this are common for the unemployed, and I expect this will only be another one for them.

If it ends up that I get my $950 in April, I will be thinking how badly are we in trouble, if the Government is that desperate to give me money will no strings attatched? Will there be any conditions to abide by?

If I was unemployed, I would just think this is normal, but as a worker who receives no Government assistance, it's hard for me to digest for some reason.

reply to post by NuclearPaul


you may find you have to have children and have a single income,
your partner will have to be studying at college or TAFE.

We will wait and see what happens, But if you listen to Rudd talk, all he wants to do is get Australia into an Asian union.

This is disturbing to me. I have been seriously considering moving from the US to Australia. My reasoning... if China cuts the US off they will need to do business with someone. And that someone is likely to be India, Japan, Saudi Arabia, etc (probably weighted to other countries which are or sympathize with communist views). Australia will be closer to the Asian trade routes and probably get in on that hot Yuan action!

I thought Australia was not as effected by the U.S. economic failure. I'm still optimistic though. So... sponsor me anyone?

reply to post by Avarus


Its not a "U.S. economic failure" Its a world Economic Crisis.
Every Country has been effected one way or another.
Australia has been effected mainly in the Stock Market as far as my knowledge, there as also been a few Job losses, in fact a friend called me a few hours ago and said she just got fired, because her company is cost cutting.
Also Just before Xmas Pacific Brands cut approx 100 people.

[edit on 2/2/2009 by wycky]

you also have BHP billiton closing some of its mines because the massive mining boom in this country has now burst.

and i heard something on the radio about the Gubmint giving away free home insulation.

man, my house sure could use some roof insulation!

The crisis has hit Australia only in the last month from a jobs perspective as giants like BHP just shut a nickel refinery in Ravensthorpe and 1800 people who worked there were unceremoniously sacked.

I work for an American mining company here in the West and they are looking pretty shakey at the moment having survived the great depression it could be this crisis that eventually sinks it

reply to post by munkey66


Not only will we have to pay for it but we are going to pay for it with interest. About a month ago the government sold $45 billion worth of 5 year bonds at a 4.25% rate if memory serves. That is where they are getting this money because nobody wants to raise taxes in the current environment and rightly so. In 5 years we will end up paying about $56 billion for this stimulus today due to interest. If it works then it will be worth it but I don't think it will work as well as expected. The government is no substitute for the jobs and trade created by private companies, even in the short term.

The $12.7 billion that goes to workers who earn under $100 000 will be the most effective part of the package. However it could have been better distributed via tax cuts because whenever governments take money and redistribute it back to the people some is lost along the way. I don't expect to see very good returns on the $28.8 billion being spent on schools, housing, energy efficiency in homes, community infrastructure and roads. It will help keep Rudd's popularity high but in my opinion our spending levels on these areas is already sufficient and in some cases we even need to cut back spending.

[edit on 3-2-2009 by Jacob08]

reply to post by Jacob08


Unfortunately we have Anna Bligh, she is in the process of putting Flouride in our water to keep us docile while she fleeces us.

What ever Rudd gives us, Bligh takes away anyway.


I put a picture of her in the bottom of the pool to keep the kids away from it.

reply to post by munkey66


We Already do have Flouride in our water
In Sydney anyway.

www.health.nsw.gov.au...

reply to post by wycky

I'm here in Cairns and thankfully we still havn't had our water poisoned yet.
but it is coming this year.
But now as Aussies we had a 20 odd billion surplus and now we will have a 20 billion defeceit.

reply to post by munkey66


Would you prefer the money go to the rich? or the banks?

We're in a unique position in Australia because our banks haven't gotten too big for their boots so they don't need the governments help.

I welcome this package, I've been hugely affected by the economic downturn and every cent counts. I've had to make huge cut backs because if I didn't I'd lose my home.

Originally posted by Chadwickus
reply to post by munkey66

 

Would you prefer the money go to the rich? or the banks?

We're in a unique position in Australia because our banks haven't gotten too big for their boots so they don't need the governments help.

I welcome this package, I've been hugely affected by the economic downturn and every cent counts. I've had to make huge cut backs because if I didn't I'd lose my home.

Tend to agree chadwickus
Time will tell. Most of the money is to fund projects to get people working. The handouts are for instant cash flow into business. Unfortunately that part wont work IMO handouts will go to the banks to pay debt. It really need to be spent to kept small business going but tell that to those who need to pay for there house when they have lost their job.

How is puting $950 dollars in my pocket going to create sustainable work?
all it does is give cash out which does nothing but give the big retailers a little boost.
how many new jobs where created last time Rudd handed out the cash?
It was a christmas rush and that was it, I have heard about more companies laying off staff than who have actually put anyone on.

So how is this stimulus package going to generate work?
we get a few goverment projects that will help the construction industry, but that will not help tourism, it will not help exports and it will do bugger all for the unemployed who will not be able to get a job because no company is growing except for centrelink.

The money would be better off staying in surplus and possibly used to help small businesses to get started who will employ people and generate the wealth.
giving money out to generate a stimulus package is like giving a person a pain killer for a broken leg rather than plaster the leg.

reply to post by munkey66


Not sure if you've missed it or not but from the OP:

the centrepiece of the 72-page 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

So $28.8 billion on schools, roads, small business etc.
This is where new jobs can be created and endangered jobs secured. (90,000 in fact)

Only a third ($12.7 billion) is a cash in the hand bonus.

That will pay a small credit card debt, or put new tyres on the family car or like me will cover shire rates.