I love being Australian ! Still in the war against recession, Australian Government will distribute another “stimulus package” that benefit Australian. In other word, the Aussie will received yet another “free money” tax free from government. Last December, $10 million have been distributed to help family with child and the payment is $1000 for each child. ( I make a post about that in Avoiding Recession and the 10 Billion Dollar stimulus…)
This time, totaling $42 billion, the money will be distributed as 5 different packages:
- Tax Bonus for Working Australians of up to $900 paid to every eligible Australian worker earning $100,000 or less. This will support up to 8.7 million individuals. The detail is:
- A $900 bonus will be paid to taxpayers with taxable income up to and including $80,000.
- A $600 bonus will be paid to taxpayers with income exceeding $80,000 to $90,000.
- A $250 bonus will be paid to taxpayers with income exceeding $90,000 to and including $100,000.
- $900 Single Income Family Bonus to support 1.5 million families with one main income earner.
- $950 Farmer’s Hardship Bonus paid to around 21,500 drought affected farmers and farm dependent small business owners receiving exceptional circumstances related income support.
- $950 per child Back to School Bonus to support 2.8 million children from low- and middle-income families.
- $950 Training and Learning Bonus paid to students and people outside of the workforce returning to study to help with the costs of education and training.
So, next month, April 2009, if you pay tax last year (who doesn’t?), you don’t need to do anything, the government will transfer the money (or send the check) just like the tax return last year. If the family is single income earner (means, only the father or the mother is the one working, not both), there will be additional $900.
Additionally, if your child is in school, there will be additional $950 per child to help with educational expenses.
For detail information, just directly go to this official site.
Will This Help The Economy?
As we know, for the December 2008 quarter, the Growth Domestic Product (GDP) of Australia has shrinked 0.5%. But economist agreed, that compared to the rest of the world, this figure is really good. And technically, by definition, Australia is still not in recession as it need 2 consecutive negative GDP to call it recession. So whether or not this stimulus can stimulate the GDP , we don’t really know. But as a action from government on “best effort” basis to its citizen, I would call this as a successful one already. The money is much more valuable to be spend now rather than sitting doing nothing in “Future Fund”. Remember, all this money is not debt money. This is a accumulation of surplus of tax over the years.
It might not too big, but imagine additional $4000 for a working family with 2 school children. It makes a lot of difference. It means they will have proper uniform, book, maybe computer. Or even they decide it to spend the money for a holiday, it will enhance the family while boost the economy as well. (Go holidaying domesticly , please…)
True, that some family may suffer more from job losses due to the downturn. But then this new stimulus will means so much more for them. Furthermore, with current social security scheme in Australia, at least these families will not be in hunger.
This kind of happening is really a wake up call for all of us to maintain a financial protection (you need to have enough money in the bank to survive at least 6 months without earning).
Although we welcome with full gratitude the help for government, we need to remember that our financial situation is our own responsibility. Have a millionaire mindset and make sure you improve your own financial situation (Read: Improve Your Finance Position: The Big Picture), educate yourself about finance and money, join a like minded community to strengthen your will and set your financial freedom goal. Remember both property and stock market at its very low, there never been a better time to start your investing journey toward your own financial freedom !
Good luck !