- Welfare groups, unions and housing industry welcome $10.4b funds
- The Herald Sun
- 14/10/2008 Make a Comment
- Contributed by: The Rooster ( 264 articles in 2008 )
LUMP sum payments to pensioners and increased payments to low and middle income families have been hailed as an early Christmas present.
Prime Minister Kevin Rudd announced today it would hand out $4.8 billion to pensioners, $3.9 billion to low and middle-income families and $1.5 billion to first home buyers, along with other initiatives.
The $10.4 billion package is designed to kickstart Australia's economy in the midst of a global financial crisis.
National Seniors Australia chief executive Michael O'Neill said the lump sum payment meant pensioners would be able to buy their grandchildren Christmas presents, buy a Christmas ham and pay off household debts.
"The government had clearly recognised the pressure older Australians are under,'' he said.
"This means single-aged pensioners, in particular, who usually barely scrape by, will have little reason to do without this Christmas."
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Australia's four million pensioners, carers, and seniors will benefit from December 8.
Single pensioners will receive a lump sum payment of $1400 while pensioner couples will receive $2100.
People receiving the carer's allowance will also receive $1000 for each eligible person in their care.
There will also be $1000 boosts for low income families receiving Family Tax Benefit A, and families with dependent children receiving Youth Allowance, Abstudy or a benefit from the Veterans Children’s Education Scheme.
Australian Council of Trade Unions president Sharan Burrow said the package would help ward off job losses and benefit families in the short and long term.
“In the short term it will provide relief for Australians feeling the pinch from rising petrol, housing, food and other basic living costs," she said.
“This will be especially useful in the lead up to Christmas and the holiday season, a time when we know many low and middle income families have to dip into savings or max out their credit card.
"In the longer term, the package will also benefit working Australians through extra training places and the accelerated implementation of nation-building projects."
Anglicare Victoria CEO Dr Ray Cleary welcome the increased support for struggling pensioners and families but questioned the need to increase the first home owners grant.
“I fear the Rudd government has been seduced by the short term economic boost a lift in housing construction can offer,” he said.
“We have seen in the past that any short term gain is more than outweighed by the detrimental effects of artificial price inflation and surges in building new estates far from services with very little infrastructure such as public transport.
"This is the perfect opportunity to fund the construction of new public housing to combat homelessness and ease pressure on the property bubble."
But the Housing Industry Association said making the first home owner grant $14,000 - up from $7000 - or $21,000 for those buying a newly-constructed home would boost a subdued housing market.
"This measure will provide an immediate stimulus for new housing and help restore business confidence across the sector particularly in the building manufacturing sector,'' managing director Ron Silberberg said.
Master Builders Australia CEO Wilhelm Harnisch said the increased payments would restore confindence, particularly amongst home builders.
"Kick starting the housing sector is a proven success formula for stimulating economic growth because of the multiplier effects it has on the broader economy in terms of providing jobs as well as stimulating the manufacturing and retail sectors," he said.
The scheme will be time limited. All contracts entered into by June 30 next year will be eligible for the new assistance.
The Government will invest about $1.5 billion in the housing market over 2008/09 and 2009/10 through this initiative.
Mr Rudd said the package also contained $187 million to create 56,000 new training places in 2008-09 and brings forward spending on infrastructure.
Mr Rudd said it was time for fast, decisive action.
"The global financial crisis has entered into a new, dangerous, and damaging phase,'' he told reporters.
"That's why the Government has decided to act decisively and early on the question of this economic security strategy for the future.
''(It's) decisive action, responsible action, early action, all in Australia's interests.''
Mr Rudd said the $10.4 billion strategy would be entirely funded from the budget and Treasury had advised that the budget would continue to be in surplus after the measures are introduced.
The Government will publish a full budget update in the Mid-Year Economic and Fiscal Outlook within a month.
- Sarah Wotherspoon, Peter Jean and wires
Prime Minister Kevin Rudd announced today it would hand out $4.8 billion to pensioners, $3.9 billion to low and middle-income families and $1.5 billion to first home buyers, along with other initiatives.
The $10.4 billion package is designed to kickstart Australia's economy in the midst of a global financial crisis.
National Seniors Australia chief executive Michael O'Neill said the lump sum payment meant pensioners would be able to buy their grandchildren Christmas presents, buy a Christmas ham and pay off household debts.
"The government had clearly recognised the pressure older Australians are under,'' he said.
"This means single-aged pensioners, in particular, who usually barely scrape by, will have little reason to do without this Christmas."
* Your Say: More reader reaction and comments
* Government coffers: Victoria boasts $1.5b surplus
* 500 at risk: Ford confirms Vic jobs threat
* Bounce: Wall St, Europe in massive stocks surge
* Mortgage relief: More interest rates joy tipped
* Welfare reform: Opposition warns of 'dole bludgers'
* Kevin Rudd: How we'll ride out this storm
* In depth: Survival special |Latest in BusinessDaily
Australia's four million pensioners, carers, and seniors will benefit from December 8.
Single pensioners will receive a lump sum payment of $1400 while pensioner couples will receive $2100.
People receiving the carer's allowance will also receive $1000 for each eligible person in their care.
There will also be $1000 boosts for low income families receiving Family Tax Benefit A, and families with dependent children receiving Youth Allowance, Abstudy or a benefit from the Veterans Children’s Education Scheme.
Australian Council of Trade Unions president Sharan Burrow said the package would help ward off job losses and benefit families in the short and long term.
“In the short term it will provide relief for Australians feeling the pinch from rising petrol, housing, food and other basic living costs," she said.
“This will be especially useful in the lead up to Christmas and the holiday season, a time when we know many low and middle income families have to dip into savings or max out their credit card.
"In the longer term, the package will also benefit working Australians through extra training places and the accelerated implementation of nation-building projects."
Anglicare Victoria CEO Dr Ray Cleary welcome the increased support for struggling pensioners and families but questioned the need to increase the first home owners grant.
“I fear the Rudd government has been seduced by the short term economic boost a lift in housing construction can offer,” he said.
“We have seen in the past that any short term gain is more than outweighed by the detrimental effects of artificial price inflation and surges in building new estates far from services with very little infrastructure such as public transport.
"This is the perfect opportunity to fund the construction of new public housing to combat homelessness and ease pressure on the property bubble."
But the Housing Industry Association said making the first home owner grant $14,000 - up from $7000 - or $21,000 for those buying a newly-constructed home would boost a subdued housing market.
"This measure will provide an immediate stimulus for new housing and help restore business confidence across the sector particularly in the building manufacturing sector,'' managing director Ron Silberberg said.
Master Builders Australia CEO Wilhelm Harnisch said the increased payments would restore confindence, particularly amongst home builders.
"Kick starting the housing sector is a proven success formula for stimulating economic growth because of the multiplier effects it has on the broader economy in terms of providing jobs as well as stimulating the manufacturing and retail sectors," he said.
The scheme will be time limited. All contracts entered into by June 30 next year will be eligible for the new assistance.
The Government will invest about $1.5 billion in the housing market over 2008/09 and 2009/10 through this initiative.
Mr Rudd said the package also contained $187 million to create 56,000 new training places in 2008-09 and brings forward spending on infrastructure.
Mr Rudd said it was time for fast, decisive action.
"The global financial crisis has entered into a new, dangerous, and damaging phase,'' he told reporters.
"That's why the Government has decided to act decisively and early on the question of this economic security strategy for the future.
''(It's) decisive action, responsible action, early action, all in Australia's interests.''
Mr Rudd said the $10.4 billion strategy would be entirely funded from the budget and Treasury had advised that the budget would continue to be in surplus after the measures are introduced.
The Government will publish a full budget update in the Mid-Year Economic and Fiscal Outlook within a month.
- Sarah Wotherspoon, Peter Jean and wires
Source: https://www.news.com.au/heraldsun/story/0,21985,24495341-661,00.html
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