Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

The Rudd government has today announced $10.4 billion in an Economic Security Strategy aimed to strengthen the Australian economy in the face of the worst global financial crisis since the Great Depression. This $10.4 billion strategy will strengthen the national economy and support Australian households, given the risk of a deep and prolonged global economic slowdown. The Australian economy is strong and we remain better placed than most other nations, but Australia is not immune from the global financial crisis.

In the midst of this crisis our government—the Rudd government—is taking decisive action to strengthen the Australian economy. The government’s Economic Security Strategy contains five key measures: $4.8 billion for an immediate down payment on long-term pension reform; $3.9 billion in support payments for low- and middle-income families; a $1.5 billion investment to help first home buyers purchase a home; $187 million to create an additional 56,000 training places; and of course the acceleration and implementation of the government’s three nation-building funds, looking to bring forward that investment into 2009.

We made tough decisions in the May budget to build up a large budget surplus despite the opposition we received from the Liberal Party. That allowed us to have a buffer for when times got tough. As the Prime Minister has outlined today, those times have arrived. The reason we can deal with it is that we had the surplus, because we made provision for those tough times; we made savings for those difficult times. Our strategy is a significant economic response to deal with those extraordinary economic times.

The measures announced today by the Prime Minister will deliver the down payment to Australia’s four million pensioners, carers and seniors—not just a few of them, all of them. The measures will provide them with immediate financial help in the lead-up to the comprehensive reform strategy we have announced which will be implemented in the context of the next budget.

The $4 billion down payment for pensioners will be made available through a lump sum payment of $1,400 to single pensioners and $2,100 to pensioner couples. People who are receiving the carers allowance will also receive $1,000 for each eligible person in their care. These payments will be made from 8 December 2008 and are intended to provide additional support in the nine months between now and when the long-term reforms are introduced from the beginning of the next financial year.

The package also includes $3.9 billion in immediate financial support to help around two million Australian families. The support will be delivered to families through a one-off payment of $1,000 for each eligible child in their care. Those who will receive the support include families who receive family tax benefit and families with dependent children who receive youth allowance, Abstudy or a benefit from the Veterans’ Children Education Scheme. In all, around 3.9 million Australian children’s parents will receive a $1,000 one-off payment. These payments will provide enormous support for families in the current difficult times. These payments also will be made from 8 December 2008.

Our government is determined to take decisive action to strengthen the growth of our economy and protect Australians from the fallout of the global financial crisis. These measures we have announced today will strengthen our national economy and support Australian households.