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Australian Government Unveils New Stimulus Plans

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

06 February 2009

The Rudd Government announced on February 3 the introduction of a AUD42bn Nation Building and Jobs Plan to support jobs and invest in future long-term economic growth.

This plan is a further step in the government’s response to the severe global recession.

The country's Treasury estimates that the implementation of the Nation Building and Jobs Plan will support up to 90,000 jobs in 2008-09 and 2009-10.

Key measures funded by the plan include:

  • Free ceiling insulation for around 2.7 million Australian homes;
  • Build or upgrade a building in every one of Australia’s 9,540 schools;
  • Build more than 20,000 new social and defence homes;
  • AUD950 one off cash payments to eligible families, single workers, students, drought effected farmers and others;
  • A temporary business investment tax break for small and general businesses buying eligible assets; and
  • Significantly increased funding for local community infrastructure and local road projects

It is hoped that the initiatives in the Nation Building and Jobs Plan will provide a boost to economic growth of around 0.5% of GDP in 2008-09 and around 0.75% to 1% of GDP in 2009-10.

For every AUD1 spent providing immediate stimulus to the economy the government claims that it has invested more than AUD2 on long term investments that will generate future economic growth.

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