Rudd's $42 billion 'nation building' plan

3/02/2009 3:26:00 PM The Canberra Times Reports...

STIMULUS PACKAGE AT A GLANCE

• $14.7b for schools - $200,000 each
• $6.6b for 20,000 new homes
• $3.9b to insulate 2.7m homes
• $890m for road repairs and infrastructure
• $2.7b small business tax break
• $12.7b for cash bonuses of up to $950

The Federal Government today unveiled a mini-budget to spend $42 billion on "nation building and jobs'' as it revealed there had been an incredible $200 billion turnaround in the budget bottom-line over the next four years.

In a fresh bid to spend its way out of recession, the Government announced five one-off cash bonuses worth up to $950 will be paid to middle and low-income workers and families, children going back-to-school, farmers in hardship and people undertaking training.

The package also gives $200,000 to every school for maintenance, spends $890 million on regional roads and black spots, will build 20,000 new homes, boosts rebates for solar hot water and gives tax breaks to small business.

The Treasurer, Wayne Swan, claimed 90,000 jobs would be created by the package over the next two years, but despite this the unemployment rate was predicted to jump to 7 per cent by next year.

The budget will be $22.5 billion in deficit for this financial year _ a $44 billion turnaround from the $21.7 billion surplus predicted in Mr Swan's first budget last May.

Despite the Prime Minister, Kevin Rudd, saying it would be a "temporary deficit'', today's mini-budget reveals the nation's finances will be in the red for at least the next four years with the accumulated deficit of $118 billion (almost identical to the $115 billion that has been wiped from expected tax collections from companies, individuals and the GST).

WESTPAC has passed on the Reserve Bank's 100 basis point interest rate cut to its customers.

February 03, 2009 03:18pm HERALD SUN REPORTS...

Westpac's new standard variable rate is 5.91 per cent, effective Monday February 9.

The bank says it will also reduce its 55-day credit card rate by 100 basis points.

The nation's other big banks are yet to announce reductions in home loan rates after the Reserve Bank's announcement.

THE GOOD NEWS.
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