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The Australian Government has decided that to stop the Country going into a bigger recession that forcasted, they are going to give people nearly $1000 dollars. Quite literally, the government is simply going to send me $950.
The idea behind it, is that if we can get people to start spending money, it’s going to give a kickstart to the economy again. While I’m no economist, nor do I follow politics or money matters; this is what I understand of the situation.
People who work and earn under $80,000 per year (which includes me) will be getting the full $950 once-off lump-sum payment. Once you go over the $80k, the amount you get will decrease. The payment will only be given to people who are low- or middle- income earners or are families on the Family Benefit.
Unfortunately, recent polls conducted by various places indicate that it WILL NOT work, as people are simply to scared to spend money.
52% of people said that they will simply pay off debt
23% of people said they will not spend the money
This leaves only 25% of people who will spend part or all of the bail out package. This is forcasted that it will not help the economy enough.
Some of the people opposing the reasons behind the package have been saying simliair
“If you are lucky enough to recieve some of this package spend it wisely, and save as much as you can. The world is in the problem it is because everybody has been living a life they cannot afford, thinking that house prices will always go up and plasma tv’s are an essential item.
“There is no doubt that the government wants you to spend this money consuming, this is why it is called an ‘economic stimulus package’ rather than calling it a ‘family support package’, if they really cared about the Australian people, they would be telling all the recipients of this money to use it where they have to (food, education, housing), pay off credit card debt, and those who can, save, save, save. “
-Adam Taylor of Perth on News.com.au
So it is really a toss up: Should we spend the money and try and bring Australia into a better standing through the recession; or is that a wasted hope and we should save the money for when we’re hit worst by the recession?
It is expected that Australia’s economy is going to grow less thanfirst predicted over the next few years. This has thrown the Aust. government into a deficit, and they are expected to stay that way for a fair few years to come.
In all of this, I somewhat feel sorry for Rudd. I just hope that people don’t go “recession…Rudd… vote him out”
When the last pakcage was distributed, police in many areas [especially rural NT] found that crime rates went higher, and they picked up more drunk people, and arrested more men for battery of family members…
What do you think about Australia’s new idea of giving us all money?
Will you spend your money? Save it? Let me know.
Filed under: Thoughts | Tagged: australian, bail, bail out, country, deficit, government, kevin, kevin rudd, money, out, recession, rudd
I think I’ll put that money to fill up my credit card
Don’t forget to mention the other elements of the stimulus package. This is how News.com.au have reported it:
“PAYMENTS of $950 to Australian taxpayers who earned less than $80,000 in 2007-08, tapering to $650 for income earners between $80,000 and $90,000 and $300 for taxpayers earning $90,000 to $100,000.
A $950 once-off bonus to 1.5 million families who are eligible, as of today, for Family Tax Benefit B.
A $950 once-off bonus to 1.2 million families per school age child, as long as they are eligible for Family Tax Benefit A.
A $950 once-off bonus to students and other income support recipients to assist with education costs.
$12.4 BILLION over three years to fund the construction of assembly halls, new libraries, indoor sports centres and performing arts centres for primary schools.
$6 BILLION for new public and community housing, to be built by December 2010.
$2.7 BILLION for free ceiling insulation and installation for Australian homeowners.
$2.7 BILLION in temporary tax breaks to small and other businesses.
$890 MILLION for black spot road funding, boom gates and community infrastructure.”
Here’s a little something you should check out that may be contribute to what is currently happening.
http://au.youtube.com/watch?v=0kHhc67GopM
Nice post. Giving people money doesn’t work. The majority just gamble or save it. Tax cuts is where the action is at. Give me a tax cut and i’ll spend the money!
http://www.ozpolitico.com
Ozpolitico – The majority “gamble” or “save it”? Are you sure about that. Please can you post some evidence to support your statement.
maybe you can help me, how are we meant to claim this refund, it was mentioned that it needed to be claimed by june 30th. if this is true, and its meant to be submitted with a tax return, thats impossible as most dont receive their earnings certificates until after that date. i admit it has me lost.
Hi Bill,
From what I have heard recently, the government will be doing most of the work for us. If you received your 2008 tax return, then it will either be going to your EFT or Address details used last year.
This means to make sure your details are correct with the ATO.
I have also read that people need to ’submit’ by certain dates. I think this refers more to people who have not submitted their 2007-2008 Tax returns, not their 2008-2009. I assume this, as I read that victims of the Vic Fires have it extended until 2010, and they will still receive the funds.
I guess the government does this to ensure they get all the tax that is owed, or you don’t get the cheque. Simple thoery.
I hope this helps!
I have a few more posts on my new blog, http://brodhe.com/?cat=822
Best Regards,
Brodhe
How do you no when you get it? I dont want to be cheaking my account every day lol
That’s something you would need to arrange with your bank. Personally i have set up email reminders, so once a sum of $x hits my bank account, they email me that its gone in.
Most banks offer a notification system like this, have a look at their website.
Ok thanx im a single mum my babys 9 weeks old im on famly tax a and b i was working and loaged a tax retern last year do i still get the 950 now im not working
Отличная статья, спасибо!
hello i woud like to no if you may help me in some questions ?
it’s because i woud like to live in Australia ,but i don’t no how can i do it.