KEVIN Rudd will deliver a one-off Christmas bonus to pensioners and low income families of over $1000 and triple the first home buyers grant for newly constructed homes to kickstart the economy.
The Prime Minister has outlined a $10.4 billion stimulus package today in light of the global financial crisis that will include a boost to family payments for 3.8 million eligible Australian children.
"Those who hold a Commonwealth Seniors Health Card or are Veterans Gold Card holders eligible for Seniors Concession Allowance will receive a payment of $1400 if they are single or $2100 to couples,'' Mr Rudd said.
"People who are receiving Carer Allowance will also receive $1000 for each eligible person in their care. "
The pensioner and low income family bonus payment alone will carve out $8.7 billion from the Budget surplus.
Families who receive Family Tax Benefit (A) and families with children who receive the Youth Allowance, Abstudy or a benefit from the Veteran Children's Education scheme will be eligible.
To stimulate construction in the housing sector the Government will also triple the first home buyer for newly constructed homes from $7000 to $21,000 for one year.
"All contracts entered into by 30 June, 2009 will be eligible for this new additional assistance,'' Mr Rudd said.
Other first home buyers will secure a doubling of the first home buyers grant to $14,000 for 12 months. The Government also announced a doubling of training places to tackle the skills crisis.
Mr Rudd pledged the Economic Security Strategy would strengthen the Australia economy "in the face of the worst global financial crisis since the Great Depression".
He said the Government would do whatever it takes to protect the economy in the future, refusing to rule out future action beyond the $10 billion package.
But the Prime Minister indicated he believed the Government could also maintain a surplus, despite spending almost half of the $21.7 billion Budget surplus on the stimulus package.
He said the Government was acting "ahead of the curve" to anticipate and respond to threats in the coming months.
Treasurer Wayne Swan said we were in the midst of the worst ever economic crisis to confront the modern market.
"The situation is moving very fast and it does require decisive action,'' Mr Swan said.
