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Australian Government Attempts To Stimulate Deceased

by Mary Swire, Tax-News.com, Hong Kong

29 May 2009

The Australian government has defended its economic stimulus package after it emerged that tax cheques worth AUD900 (USD704) were sent to 16,000 deceased citizens.

The payments are part of the government's recent AUD42bn (USD32bn) stimulus plan. The scheme was designed to kick-start the economy by awarding stimulus cheques to citizens who lodged a tax return in the previous financial year.

However, since lodging their returns, thousands of the seven million citizens eligible for the payouts have died - creating an embarrassing situation for the government.

The government is now desperately trying to defend the stimulus package after opposition MPs branded it a 'reckless spending spree'. Despite the glitch, the government's Small Business Minister Craig Emerson has assured that “99.5% of the stimulus money went exactly where it was intended to go".

The recipients, who remain decidedly unstimulated, are being referred to as the "grateful dead".

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