A Breakdown of the Federal Government Proposed Stimulus Package

Monday February 9, 2009

The latest stimulus package is the Federal Government's move to slow Australia's progression into recession with a solid focus on energy efficiency in homes, housing, schools, community infrastructure and roads and small business support. Furthermore, Prime Minister Kevin Rudd stated that the stimulus package will protect 90,000 jobs up to and including 2011 and should stimulate investment flow.

The stimulus package balances allocated funds between families, schools and infrastructure with every $1 spent in the short term to stimulate the economy, the government while invest $2 and more into long term investments to promote future growth.

The $42 billion stimulus package breakdown of main elements:

Tax Breaks - $2.7 billion
Any business that has a less than $2 million turnover rate will qualify for an additional 30 per cent tax deduction.

Schools Building the Education Revolution package- $14.7 billion
Under the Building the Education Revolution package all Australian schools will receive up to $200,000 for maintenance, with many schools receiving funding allocated for large scale school infrastructures. Additionally, up to 500 science laboratories and language learning centres will be built for schools that fit the criteria.

Housing package- $6.4 billion
The $6.4 billion housing package is broken up to many multiple benefits for the environment, jobs and homeowners. This package alone is expected to create up to 35,000 jobs.

For benefit of homeowners and the environment with the long term intention of minimize household carbon emissions, the housing package has proposed to install ceiling installation in over 2.7 million homes in a move that will make them far more energy efficient.

The package is also extended to expand beyond that 2.7 million with homeowners also eligible to access the free ceiling installation with houses capped at $1,600 per house and renters being capped at $1,000.

Additionally, the Australian Defence Force personnel will receive 20,000 new housing dwellings and 802 new houses.

Individual payments - $12.7 billion
Individual payments will make up $12.7 billion of the $42 billion stimulus package with approximately 8.7 million Australians receiving financial support in the form of a $950 lump sum payment. Within the categories qualifying people for the $950 payment include:

• those who earn below $100,000 a year
• Back to School Bonus for low and middle income earners
• Training and Learning Bonus for students
• Families with one income
• Drought affected farmers
• Farm dependent small business owners

These payments are expected to stimulate the economy in the short term through higher consumer activity while long term nation-building initiatives are established.

Community infrastructure upgrades - $890 million
Community infrastructure upgrades will receives $890 million for improvements to community infrastructure and safety on the country's roads.

Back to News Index | Back to Home