The Government’s “Economic Security Strategy” has four parts totalling $10.4b in 2008-09.
- A $4.8b one-off handout to pensioners and carers to be paid on 8 December — $1,400 to single pensioners, $2,100 for couples and $1,000 to carers. Legislation for this needs to be passed this week to meet the December deadline. Watch for high-stakes brinkmanship in the Senate, with the Opposition pushing for its preferred $30 a week increase, supported by the minor parties, and the Government warning that the package is being endangered by cheap populism. Rudd has committed to full-scale pension reform in the next Budget, which won’t reach pensioners until 1 July 2009.
- $3.9b to Family Tax Benefit A recipients via a $1,000 payment for each eligible child, to be paid on 8 December.
- $1.5b to first-home buyers via a temporary additional $7,000 payment in 2008-09, taking the payment to $14,000, and an additional $14,000 to purchases of newly-constructed homes, taking it to $21,000.
- $187 for new training places in 2008-09.
The Prime Minister is referring to a fifth element, the “bring-forward” of infrastructure investment, with a December infrastructure statement. Forget about that — there’s not going to be enough money for major new infrastructure funding unless the economy performs far more strongly than expected.
I can’t see how any of the needy causes listed is helped by a bracing stimulus to the rate of inflation in everything they buy. Its purchasing power which gets eroded, and you can’t fix it by throwing more money into the system. As for the benefit to anyone considering taking on a mortgage after house prices were universally bid up $21 000 dollars five minutes after this annoucement was made, I am struggling to see it.
People with children pay less tax, receive existing baby bonuses and receive the joy of children to go with it. For being in this desirable position they are granted even more money from the government.
It is getting to the stage where single and childless couples are resenting the constant flow of middle-class welfare to families, especially because it’s all paid for by us.
I daresay that children this year are going to receive the best presents from Santa that they will ever get. A good time to buy Nintendo shares.
I have children. I fall under the threshold. I’d rather see the money go to something useful. I’ll pay the mortgage with it, probably (thereby hopefully increasing the money’s value). But if they said ‘single people with no health issues earning under 55 k can get a tax bonus, or some such’, I’d be happy.
Obviously point four should read ‘$187 million for new training places in 2008-09.’…
So much middle-class welfare… Hopefully its in anticipation of the costs of the new climate change legislation, to be used by the government as evidence they can implement the emmission trading scheme (and carbon tax) without bankrupting the poor to middle income earners…
No no, anonymouscoward, it really IS $187. A dollar for each new position.