Prime Minister Kevin Rudd has foreshadowed more measures to stimulate the economy.
He has warned that Australia faces a tough and ugly economic future.
The Government has already announced it will spend more than $10 billion to try to keep the economy growing, but Mr Rudd says it might do more.
"Growth in this economy and jobs are under direct threat from the global financial crisis and as I've said before, the Government stands ready to take whatever other decisions are necessary to continue to support growth and jobs in the future," he said.
"It will be tough, it will be difficult, it will be hard, it will be ugly, particularly when you look at the unfolding economic data from around the world and the beginning of a global economic recession."
Federal Treasurer Wayne Swan says the economy is slowing but growth will not stop.
The Reserve Bank (RBA) is tipped to respond to the slowdown by cutting interest rates again tomorrow.
The Opposition has demanded that any cut be passed on in full.
Last month the Government did not insist on that, b now Mr Swan is calling for it.
"Well, in full and if they can't do it in full, they'd better have a pretty good explanation," he said.
Mr Rudd says the Government's bank deposit guarantee means the cut can be passed on in full.
