The Government will provide $12.2 billion to assist households and support economic growth in 2008‑09. The measures will strengthen the national economy and provide financial assistance to Australian households, given the risk of a deep and prolonged global economic slowdown.
Household financial assistance is being provided through immediate tax relief and transfer payments to ensure timely assistance to households to stimulate consumption and support private demand. It is necessary to provide households immediate assistance to kick start stimulatory activity until direct Government investment measures take effect.
The package is designed to provide widespread support to low‑ and middle‑income earners and households that are most affected by the slowdown. The package is a significant economic measure to deal with extraordinary times and is in addition to the Economic Security Strategy delivered in December 2008 to support as many households as possible.
The package of measures includes:
- A Tax Bonus for Working Australians of up to $900 for eligible taxpayers, depending on income thresholds.
- A Single-Income Family Bonus of $900 to provide additional assistance for families that have one main income earner and may otherwise receive less assistance from the package than dual income families with similar household income.
- A Farmer's Hardship Bonus of $950 which will be paid to farmers and others receiving Exceptional Circumstances related income support.
- A Training and Learning Bonus of $950 to assist students, those returning to study or training, and some income support recipients.
- A Back to School Bonus of $950 per child to assist low- and middle-income families eligible for Family Tax Benefit A with school-age children.
Questions and Answers
Who will this package assist?
- The package will provide widespread assistance to low‑ and middle‑income households to support economic growth and jobs.
- Around 8.8 million (just under 80 per cent of) families and singles are expected to receive payments under the household stimulus package.
- Around 10.6 million families and singles are expected to receive at least one payment from the Economic Security Strategy and the household stimulus package.
- Details of recipients for each Bonus are detailed in separate fact sheets.
When will people benefit from this assistance?
- The Tax Bonus for Working Australians will be paid as a lump sum of up to $900 and will be paid to eligible taxpayers from April 2009. Taxpayers will not need to apply for the payment. The Australian Taxation Office will automatically make the payment after determining eligibility.
- For the majority of recipients, the payments for the Single‑Income Family Bonus and the Back to School Bonus will be made automatically by Centrelink in the fortnight commencing 11 March 2009.
- The payment of the Farmer's Hardship Bonus will be made automatically by Centrelink in the fortnight commencing 24 March 2009.
- For the majority of recipients, the one‑off $950 component of the Training and Learning Bonus will be made automatically by Centrelink in the fortnight commencing 24 March 2009.
- The temporary increase in the Education Entry Payment will be made by Centrelink as claims are made.
- For eligible Education Entry Payments made prior to 24 March 2009 the payment of the temporary increase will be made automatically by Centrelink from 24 March 2009.
- See separate fact sheets for details on payments in certain other circumstances.
Why has the Government lowered the Tax Bonus for Working Australians and Single-Income Family Bonus by $50?
- The Government has made some amendments to the Nation Building and Jobs Plan to ensure the passage of this important Plan. This includes making some changes to the size of some of the targeted payments – to ensure the package remains fiscally responsible.
- This adjustment balances the requirement for fiscal responsibility with the need to deliver fiscal stimulus now.
- This does not fundamentally alter the balance, the intentions, or the careful design of the package.