Update: Prime Minister Kevin Rudd today announced the government would guarantee all deposits being held in Australian financial institutions for the next three years.
The blanket guarantee was one part of a three-pronged plan to further safeguard Australians from the fallout from the global financial crisis.
Australia's move to combat the global financial crisis by offering blanket bank deposit guarantees and other measures is being conducted in coordination with New Zealand, a spokesman for Mr Rudd said on Sunday.
''This is an Australian initiative in coordination with New Zealand,'' the spokesman, Lachlan Harris told Reuters.
The government will also guarantee all term wholesale funding by Australian banks operating in international markets.
Mr Rudd said this would enable Australian banks to better compete against their global rivals, many of whom were getting guarantees from their governments.
The government will also put another $4 billion into residential-backed securities to help shore up the Australian mortgage market.
