Last week Prime Minister Kevin Rudd and the Federal Government announced yet another rescue package in an attempt to further stimulate the Australian economy.
The key initiatives outlined in the $42 billion Nation Building and Jobs 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
• $950 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
• Significantly increase funding for local community infrastructure and local road projects
The Plan is not only intended to provide cash bonuses for immediate economic stimulation but also to support employment in our country and contribute towards future long-term economic growth.
Whilst every aspect of the package is designed to target a specific aspect of our economic climate, perhaps the most commonly talked about initiative following the delivery of the proposed activities was the immediate cash bonus handouts.
Those groups nominated to receive the bonus cash handouts of up to $950 include single workers earning under $100,000, single income families, students and farmers and accounts for in excess of 10 million people across the country.
However, soon following the Prime Minister’s delivery of the package details, and consumer’s subsequent excitement at what the recuse package meant for them as an eligible individual or family, it surfaced that it was not necessarily a “done deal”.
In order for the rollout of the package initiatives to begin the Nation Building and Jobs Plan would need to be passed as legislation and there is currently some apprehension about whether the Bill will make it through Parliament. There is currently some opposition of the Government’s proposed package, and whilst the Bill has since been passed the through the Lower House it is still yet to be given the final sign off by the Senate.
The Federal Government has proposed that the cash bonuses will be paid to taxpayers from early April 2009. However, if the Senate does not move to pass the Bill in a timely manner the delay will see a shift of dates for the implementation of all of the outlined initiatives.
The coming week will again see the country and its taxpayers focus their attention on Mr Rudd and his Government as we wait to see what the outcome of this session of Parliament will produce and how it will affect our economy in both the immediate and short term future.
The team of accountants and lawyers at The Quinn Group pride themselves on keeping up-to-date on the latest and breaking news in relation to all financial and legal matters. Whether you are a business or an individual, if you have a query about how the Nation Building and Jobs Plan will affect you or would like more information on any accounting or legal issue please contact us on 1300 QUINNS or submit an online enquiry form.