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Wednesday, October 15, 2008

Kevin Rudd's Rescue Package

Kevin Rudd announced his rescue package yesterday for Australia. Our previous Prime Minister, John Howard and his Treasurer Peter Costello handed the Labor Government a huge surplus when they lost power at the end of last year. Kevin Rudd and his Treasurer Wayne Swan seem loathe to acknowledge any credit to their predecessors for this outstanding achievement and I think it’s really getting up the noses of the opposition.

Here is a brief summary of what he’s going to do.

One-off lump sum of $1000 per child from December 8 for families who qualify for Family Tax Benefit

First home buyers grant doubled to $14000 for an existing home purchased between now and June 2009

First home buyers grant tripled to $21000 for any newly built home purchased between now and 2009

Age pensioners get a single one off lump sum of $1400 from December 8

Wife and widow pensioners also get $1400

Age pensioner couples get a one-off lump sum of $2100 from December 8

Self-funded retirees with a seniors health card get a one-off lump sum of $1400. Couples get $2100.

There are also one-off payments for people on disability pensions, veterans, carers and the list goes on.

The Government is hoping those receiving the extra money will spend it for Christmas which will stimulate the economy and the building industry should also get a boost, because here in Sydney it's almost come to a standstill.

If I were a pensioner on a low income, I’d be sticking it under the bed for a rainy day. But Mr Rudd says that rainy day is here now and that's why he's spending the surplus.

It’s a bit hard to criticize a man with a fist full of dollars, only time will tell if he’s done the right thing.