Low and middle income families will receive a Christmas bonus of $1000 per child, single pensioners will get a $1400 payment and pensioner couples will be given $2100 under an emergency $10.4 billion rescue package announced today to protect the economy.
The Prime Minister, Kevin Rudd, said it was to "strengthen the Australian economy in the face of the worst global financial crisis since the Great Depression".
The Government has also decided to double the first home buyers grant to $14,000 for those who buy an established home and to triple it to $21,000 for those who buy a newly built home.
Mr Rudd said the one-off bonus payments to pensioners and families would be made on December 8. The housing bonus would apply immediately and for the rest of the 2008-09 financial year.
THE PACKAGE
- families will receive a Christmas bonus of $1000 per child
- single pensioners will get $1400
- pensioner couples will get $2100
FIVE KEY MEASURES
- $4.8 billion down payment on long-term pension reform
- $3.9 billion for low and middle income families
- $1.5 billion investment to help first home buyers
- $187 million to create 56,000 new training places in 2008-09
- Accelerate three nation-building funds and investment in nation building projects to 2009
Announcing the spending at a press conference in Canberra today, Mr Rudd declared the global financial crisis had entered into a "new, dangerous and damaging phase" and the Government was acting early and decisively to protect jobs and households.
The pension package is worth $4.8 billion and will be paid to pensioners, carers and seniors.
Those on the single pension will get a lump sum bonus of $1400 and pensioner couples will get $2100.
Carers will get $1000 for each eligible person they care for.
Mr Rudd said the Government would still continue to work on long-term pension reform.
He said the bonus was the equivalent of a $35-a-week increase for single pensioners and $26 a week for pensioner couples.
Payments will also be made to self-funded retirees who are eligible for a Commonwealth Senior Health Care Card as well as others who hold a Commonwealth Seniors Health Card or Veterans Gold Card holders eligible for Seniors Concession Allowance.
The families package is worth $3.9 billion and will deliver $1000 for each child eligible for the family tax benefit part A and for children dependant under youth allowance and Abstudy.
Mr Rudd said 3.8 million children would receive the $1000 payment.
"The global financial crisis is the economic equivalent of a rolling national security crisis," Mr Rudd said.
"This $10.4 billion strategy will strengthen the national economy and support Australian households, given the risk of a deep and prolonged global economic slowdown.
"The Australian economy is strong, and we remain better placed than most other nations, but Australia is not immune from the global financial crisis."
First home buyer changes
The first home buyer changes will cost $1.5 billion and 150,000 first home buyers are estimated to benefit from what the Government said was a "time-limited" scheme.
The Government will also spend $187 million to create 56,000 new training places in 2008-09.
The package also includes the previously announced plan to bring forward investment in nation-building projects to 2009.
Mr Rudd said the $10.4 billion would be funded entirely from the budget and the Treasury has advised the Government the budget would still be in surplus.
The Government said it would publish a full budget update within a month.
The Treasurer, Wayne Swan, who rushed back to Australia from meetings in Washington, said the world had changed and the spending measures were vital.
Turnbull backs package
The Opposition Leader, Malcolm Turnbull, said the Coalition would support the package and he particularly welcomed the boost for pensioners.
National Seniors Australia chief executive, Michael ONeill, said older people welcomed the bonus.
"This means single age pensioners in particular, who usually barely scrape by, will have little reason to do without this Christmas," he said.
"In a real sense, it means being able to buy presents for their grandchildren, have ham on the table or fix that leaky roof."
Mr O'Neill said it would also assist low-income self funded retirees "who have borne the brunt of current superannuation slides".
Pension changes
The Federal Government said the pension bonus announced today would be a lump sum of $1400 to single pensioners and $2100 to pensioner couples. It applies to:
- Age pensioners
- Disability support pensioners
- Carer payment recipients
- Wife and widow B pensioners, partner, widow and bereavement allowees
- Veterans Affairs Service pensioners
- Veterans Income Support Supplement recipients
- Veterans Affairs Gold Card holders eligible for Seniors Concession Allowance
- Those of age pension age who receive the parenting payment, special benefit or Austudy
- Eligible self funded retirees holding a Commonwealth Senior Health Card.
People who are receiving the carer allowance will also receive $1000 for each eligible person in their care.
The Government said it includes help for self-funded retirees who are eligible for a Commonwealth Senior Health Care Card.
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.
"These pension payments will be made from December 8, 2008 and are intended to provide additional support in the nine months between now and when long-term reforms are introduced from the beginning of the next financial year," Mr Rudd said.
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