Stimulus package

[gbear]

http://www.news.com.au/adelaidenow/story/0,22606,25000611-5006301,00.html

WORKING families, primary schools and workers earning less than $100,000 are the big winners in a $42 billion emergency mini-Budget unveiled in Canberra today.

Facing the worst economic circumstances since the Great Depression, the Federal Government will move to keep as many people in work as possible and encourage the population to spend in the coming months.

The majority of Australia's 21 million people will receive a lump-sum payment from the Government as part of the unprecedented stimulus package.

But the $42 billion move will send the nation's Budget spiralling into deficit to the tune of $22.5 billion in 2008-09, and $35.5 billion in the following financial year.

"These are not normal times," Treasurer Wayne Swan said today, as he and Prime Minister Kevin Rudd unveiled the plan in Canberra.

"Extraordinary times call for extraordinary macroeconomic policy measures.

"The plan is a rapid response to deteriorating global economic conditions.

"Doing nothing is not an option."

The Government insists the package is necessary to ensure Australia is shielded from the full effects of the worldwide economic meltdown. It says the package will boost the economy by around 1/2 per cent of GDP in 2008-09 and around 3/4 to 1 per cent of GDP in 2009-10.

The plan will sustain up to 90,000 jobs over the next two years - however, Treasury modelling suggests the jobless rate will rise to 7 per cent by June 2010.

Two-thirds of the package ($28.8 billion) will be dedicated to building prosperity - such as school capital works, additional housing and business incentives.

The final one-third of the package ($12.7 billion) will be made up of lump sum payments to Australian taxpayers, families, students and drought-affected farmers, to be paid from early March, with the idea of getting money flowing into the retail economy as quickly as possible.

Key elements of the package will include:

PAYMENTS of $950 to Australian taxpayers who earned less than $80,000 in 2007-08, tapering to $650 for income earners between $80,000 and $90,000 and $300 for taxpayers earning $90,000 to $100,000.

A $950 once-off bonus to 1.5 million families who are eligible, as of today, for Family Tax Benefit B.

A $950 once-off bonus to 1.2 million families per school age child, as long as they are eligible for Family Tax Benefit A.

A $950 once-off bonus to students and other income support recipients to assist with education costs.

$12.4 BILLION over three years to fund the construction of assembly halls, new libraries, indoor sports centres and performing arts centres for primary schools.

$6 BILLION for new public and community housing, to be built by December 2010.

$2.7 BILLION for free ceiling insulation and installation for Australian homeowners.

$2.7 BILLION in temporary tax breaks to small and other businesses.

$890 MILLION for black spot road funding, boom gates and community infrastructure.

Further good news is on the way for Australian homeowners today, with the Reserve Bank of Australia to slash interest rates for a fifth consecutive time when it meets today.

Economists are tipping a rate of 1 per cent or higher.


About time middle income workers got some of the pie

 

[WhyAlwaysMe]

I hope I get a slice of the action.

 

[PowerKat]

nice to see that ppl who have decided to not have children get something, for a change

PAYMENTS of $950 to Australian taxpayers who earned less than $80,000 in 2007-08, tapering to $650 for income earners between $80,000 and $90,000 and $300 for taxpayers earning $90,000 to $100,000

 

[Power King]

^Are those prices for the combined income of a couple, or for the income of one person?

What are people planning to do with their monetary package?

 

[Pinepower]

^Are those prices for the combined income of a couple, or for the income of one person?

What are people planning to do with their monetary package?

Income of one person as taken from the tax return of 2007-2008

So if 2 adults working in a household both under $80,000 then they would both receive the $950

 

[Power King]

^Cheers pinepower.

 

[tribey]

nice to see that ppl who have decided to not have children get something, for a change

hahah yes.

- First Homeowners Grant
- Baby Bonus
- Family Tax Benefit
- Healthcare Rebate
- Childcare Rebate

"THOSE DOLE BLUDGERS LEACHING OFF THE GOVERNMENT "

Middleclass welfare ftw!

 

[Steve Dore]

WORKING families, primary schools and workers earning less than $100,000 ..........

Rudd always bandies about this term "working families" and I noticed that Obama uses it also.

It seems that the Rudd government has now clarified what a "working family" is. If the sole bread winner in a family works hard and earns $100K or more they are not a working family. If both parents work and they earn $99K each ($188K family income) then they are a working family.

 

[RussellEbertHandball]

Rudd always bandies about this term "working families" and I noticed that Obama uses it also.

First noticed him using it just before last years convention so maybe late August. There would have been strategists from both parties watch our elections

It seems that the Rudd government has now clarified what a "working family" is. If the sole bread winner in a family works hard and earns $100K or more they are not a working family. If both parents work and they earn $99K each ($188K family income) then they are a working family.

Or throw in the $150k family income to cap Family Tax Benefit Part B payments as announced in the budget.

 

[Steve Dore]

..... Or throw in the $150k family income to cap Family Tax Benefit Part B payments as announced in the budget.

I'm just glad that my wife is a "working family"

 

[MP_]

we get about 3k and if my son was at school and not kindy we'd get another $950, ah well no transformers pencil case for him.

 

[missionpossible]

If both parents work and they earn $99K each ($188K family income)

may be you should go back and start an education. you at least you get $950

99 + 99 = 198

sorry wharfie, I had to do it.

Working families the new term for middle class.

NOTE :

that if you had an income below $11,000 you do not get the workers money.

if you are over 55 and your income is below $14333 you do not get the workers money.

Or at least that is how it reads to me, certainly not as simple as it has been put accross.

 

[FishingRick04]

nice to see that ppl who have decided to not have children get something, for a change

The questions is, do people who have children and work receive the payment twice? eg 3 kids ='s $2,850 in March and then both working so in April $1,900.

From the ATO correspondence I have received in my office it may appear so.

Woot woot (I expect not though)

 

[missionpossible]

we get about 3k and if my son was at school and not kindy we'd get another $950, ah well no transformers pencil case for him.

From the ATO website

Back to School Bonus
The Government's $950 Back to School Bonus will provide a one-off, up-front bonus to be paid to families eligible for Family Tax Benefit Part A (FTB-A) on 3 February 2009 for each eligible child of school age (aged 4 to 18 on 3 February 2009).


It does not say the child has to be at school just at least 4yo on 3/2/2009

 

[MP_]

From the ATO website

Back to School Bonus
The Government's $950 Back to School Bonus will provide a one-off, up-front bonus to be paid to families eligible for Family Tax Benefit Part A (FTB-A) on 3 February 2009 for each eligible child of school age (aged 4 to 18 on 3 February 2009).


It does not say the child has to be at school just at least 4yo on 3/2/2009

i'll get the wife to investigate, we're on Family Tax B, but the signs are good for an extra bit of cash

 

[Steve Dore]

may be you should go back and start an education. you at least you get $950

99 + 99 = 198

sorry wharfie, I had to do it.

......

Dang typo. You'd think the spell checker would at least pick up my arithmetic errors

I get zip

BTW, I'd check your grammar before you start picking on my adding up

 

[RussellEbertHandball]

LOL I'm checking my finances on a footy discussion board.

My wife and I don't qualify for Part A or Part B and have two children at school.

A $950 once-off bonus to 1.5 million families who are eligible, as of today, for Family Tax Benefit B. We get nothing

A $950 once-off bonus to 1.2 million families per school age child, as long as they are eligible for Family Tax Benefit A. We get nothing

A $950 once-off bonus to students and other income support recipients to assist with education costs. We get nothing

Am I right?

Toots pt 3 is for people returning to study. You are correct on the other 2. Or more correctly you have split the 2nd payment into 2 components, You have to have a child of school age, be a FTB Part A recipient and the $950 is to help with school costs.

• $950 Training and Learning Bonus paid to students and people outside of the workforce returning to study to help with the costs of education and training.

See more info at the Treasurer's press release

Joint Media Release with The Prime Minister


$950 One-off Cash Bonus to Support Jobs

The Rudd Government today announced five key $950 one-off payments for low and middle income households and individuals.

The Government is providing these cash payments to immediately support jobs and strengthen the Australian economy during a severe global recession.

These targeted cash bonuses are a key element of the Government's $42 billion Nation Building and Jobs Plan to support up to 90,000 Australian jobs.

To immediately stimulate the economy in the shortest possible time, five groups of one-off cash bonuses will be paid in March and April 2009.

These five key bonuses include a:

• Tax Bonus for Working Australians of up to $950 paid to every eligible Australian worker earning $100,000 or less. This will support up to 8.7 million individuals.

• $950 Single Income Family Bonus to support 1.5 million families with one main income earner.

• $950 Farmer's Hardship Bonus paid to around 21,500 drought affected farmers and farm dependent small business owners receiving exceptional circumstances related income support.

• $950 per child Back to School Bonus to support 2.8 million children from low- and middle-income families.

• $950 Training and Learning Bonus paid to students and people outside of the workforce returning to study to help with the costs of education and training.

** support jobs in the middle of a severe global recession the Government must stimulate the economy in the most immediate manner possible.

That is why one off cash bonuses to people and families who are doing it toughest are a key part of our Nation Building and Jobs Plan.

......................................

Tax Bonus for Working Australians
The Government will provide an up-front, lump-sum tax bonus of up to $950 to around 8.7 million Australian workers earning $100,000 or less.

A lump-sum payment of up to $950 will be made to eligible taxpayers from April 2009. The bonus will be available to Australian resident taxpayers who paid tax in the 2007-08 financial year after taking into account available tax offsets and credits.

The bonus is subject to an income threshold test which determines that a:

• $950 bonus will be paid to eligible taxpayers with a taxable income of up to and including $80,000;

• $650 bonus will paid to eligible taxpayers with taxable incomes exceeding $80,000 and up to $90,000; and

• $300 bonus will be paid to eligible taxpayers with incomes exceeding $90,000 up to and including $100,000.

Taxpayers will not need to apply for the payment. The Australian Taxation Office will automatically make the payment after determining eligibility.

............................................................

Back to School Bonus

The Government's $950 Back to School Bonus will provide a one-off, up-front bonus to be paid to families eligible for Family Tax Benefit Part A (FTB-A) on 3 February 2009 for each eligible child of school age (aged 4 to 18 on 3 February 2009).

This will help meet education costs for the 2009 academic year and is in addition to and separate from the Education Tax Refund.

The Back to School Bonus is expected to help 2.76 million children aged 4 to 18 in just over 1.5 million families across Australia.

Training and Learning Bonus

The Government's $511 million Training and Learning Bonus provides an up-front, one-off bonus to eligible students to assist with the costs for the 2009 academic year. It also provides a temporary (until June 2010) additional incentive for social security recipients to return to education and training.

The Training and Learning Bonus consists of two categories:

Category 1

• A one-off $950 bonus for recipients of: Youth Allowance (students and apprentices); Austudy; ABSTUDY and related payments

• The one-off bonus will also be available to recipients of Sickness Allowance and Special Benefit (under age pension age).

• If a student attracts the Government's Back to School Bonus they are not eligible for the one-off $950 Learning and Training Bonus.

Category 2

• A temporary supplement (from 1 January 2009 to 30 June 2010) to the Education Entry Payment (EdEP) of $950. This is in addition to the existing EdEP payment of $208, which provides assistance with the costs of training courses, for income support recipients who are returning to study.

• A temporary extension (from 1 January 2009 to 30 June 2010) of the EdEP to Youth allowance (other); and

• A temporary relaxation (from 1 January 2009 to 30 June 2010) of the requirement that recipients must have been receiving social security payments from 12 months to 1 month.

Around 440,000 students and people returning to study will be paid this one off cash bonus.

 

[Steve Dore]

Toots pt 3 is for people returning to study. .........

Glad to see I'm not the only one that saw that post before disappeared.

 

[Toots Hibbert]

No biggy. I just thought what the hell am I doing seeking financial advice on a footy board.

It does bug me a little that we've never got anything from these government handouts.

 

[RussellEbertHandball]

What happened did the internet gobble it up?

 

[PowerKat]

The questions is, do people who have children and work receive the payment twice? eg 3 kids ='s $2,850 in March and then both working so in April $1,900.

From the ATO correspondence I have received in my office it may appear so.

Woot woot (I expect not though)

tbh I'm not that fussed who gets what - my comment was a little tongue in cheek because historically, DINKs miss the boat.

I'd prefer to see tax cuts rather than handouts, if anything

 

[Toots Hibbert]

What happened did the internet gobble it up?

Was that directed at me?

I deleted my post thinking I'd wait till I see my accountant but thanks for the as usual good info REH.

 

[missionpossible]

Dang typo. You'd think the spell checker would at least pick up my arithmetic errors

I get zip

BTW, I'd check your grammar before you start picking on my adding up

my grammar, no chance of me getting that right.

a victim of the wonderfull education department and my own reluctance to learn english.

basically taught myself how to write in year 12 and university. As you have pointed out it is not good when I just type which is what I tend to do when I get on a football site.

I could read through school but the art of english was never grasped in early primary school. I guess I got through the years being one of those kids that excelled at maths, so I was left to float in english.

 

[RussellEbertHandball]

Was that directed at me?

I deleted my post thinking I'd wait till I see my accountant but thanks for the as usual good info REH.

No worries Toots. I saw the announcement yesterday and as it affects my brother his wife and kids and my sister and her family, I thought I'd better check a more detailed explanation that what the media reported. Seeing as it involves government monies the Treasurer's media release page is always a good start.

 

[FishingRick04]

tbh I'm not that fussed who gets what - my comment was a little tongue in cheek because historically, DINKs miss the boat.

I'd prefer to see tax cuts rather than handouts, if anything

Sry my comment was in general and not directed at you.

Personally I find tax cuts deliver little to small and middle income earners as the increased amount is hardly noticable and it's power can be diminished, however a lump sum does allow some people to use that money to make an impact. Each to their own though.

DINK's do miss the boat at times but I guess the government assume people without kids have less expenses.

an example is a persons borrowing power. A generic loan calculator has it showing with three kids i can borrowing 46k, without the 3 kids I can borrow 211k yes they add costs but not that much