Rescue package will help relieve “tough times”

Published: October 21, 2008 - 01:27 PM

Rudd announces $10.4 billion economic strategy

By Lesley Coombes

The Rudd government has promised Australians a $10.4 billion rescue package to ease the burden in the current global financial crisis, The Australian reported.

Last week, Prime Minister Kevin Rudd and Treasurer Wayne Swan announced the “$10.4 billion economic security strategy for the future.”

Mr Swan talked of Australia’s grim economic position stressing, “It is the case that we are in the midst of the worst financial crisis ever to confront the modern market economy.”

Kevin Rudd outlined the five elements in the plan, beginning with the $4.8 billion down payment on long-term pensioner reform.

"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.

Christmas has come early for low to middle income families with a Christmas bonus of $1000, taking out $3.9 billion of the plan.

The families that will be eligible for this one-off Christmas bonus will include those who receive Family Tax Benefit (A) or those with children on Youth Allowance, Abstudy or a benefit from the Veteran Children’s Education scheme.

Ideally, this will ease Australian’s concerns about spending in these unstable financial times helping to bring the economy back to health.

Another $1.5 billion will be invested in helping first home buyers purchase a home by doubling the existing $7000 grant to $14000.

In an effort to increase construction in the housing sector, a first home buyer purchasing a newly constructed home will receive a $21000 grant, three times as much as the existing grant.

The number of training places will be doubled, creating 56 000 new training places in 2008 and 2009.

The government is reassuring Australians that the budget will remain in surplus after the $10.4 billion package is released.

“The purpose of a surplus in the budget is to deal with tough times and tough times are with us,” Kevin Rudd said.

This economic strategy will help challenge the global financial crisis by providing “practical support for households,” Mr Rudd said.

These tough times call for a tough reign on spending for all Australians. With Australia’s modern market economy facing its worst crisis, a reassessment of expenditure is vital.

One easy place for all Australians to do this is with their household budget. Opportunities now exist for households to take initiative with their spending, allowing them to choose where their money goes. Shoparound.com.au provides households and small businesses with this option to save money on gas and electricity.

Shoparound.com.au offers a ‘no fuss’ gas and electricity comparison table making it easy to compare electricity and gas prices. Families can cut down on their household spending by finding the cheapest electricity and gas deals available.

David Power of Shoparound.com.au says “It is vital for households and small businesses to continually monitor and compare gas and electricity providers if they want to stay ahead in the energy market. Australians need to be proactive if they want to find cheap electricity and cheap gas and save money in these uncertain times.”

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