Whole Of Government
Economic Security Strategy
The global financial crisis continues to present significant risks to the world outlook. Australia is not immune from the effects of the international slowdown, with these global difficulties having real impacts on jobs, confidence and growth.
The Government's Economic Security Strategy will provide $10.4 billion in immediate support to those sectors of the economy most affected by the deterioration in global economic conditions. The package of measures particularly targets slowing consumption and dwelling construction — two key engines of the Australian economy.
To support household consumption and assist those who are struggling to meet the rising costs of living, the Government will provide $4.9 billion to Australia's fourmillion pensioners, carers, seniors and veterans. This represents an immediate down-payment on the pension reform the Government intends to deliver as part of the Harmer Review. During December eligible pensioners and seniors will receive a $1,400 payment for singles or a $2,100 payment for couples. People receiving the Carers Allowance will also receive a $1,000 payment per person in their care.
The Government will also provide support to around two million families with $3.9 billion in one-off payments. Recipients of Family Tax Benefit (A) and families of dependent children receiving Youth Allowance, Abstudy or a benefit from the Veterans' Children's Education Scheme payment will receive a payment of $1,000 for each eligible child. These payments will all be made in December.
A temporary First Home Owners Boost will provide support to the construction industry and first home buyers. The Government will provide an extra $7,000 to those buying an established home (taking the total grant to $14,000) and an extra $14,000 to those who purchase a newly-constructed home (taking the total grant to $21,000). This additional assistance will be available to eligible first home buyers who enter into a contract between 14 October 2008 and 30 June 2009 inclusive. The Government will invest $1.5 billion over two years through this initiative.
An additional $187 million in funding to the Productivity Places Program will fund 56,000 new training places in 2008‑09. This is in addition to the 57,000 places already delivered with the commencement of the program in April 2008. The strong demand for these places to date, and the interest of Australians in upgrading their skills, is a very encouraging sign. Additional places will help build further capacity in key industries.
The Government has also committed to accelerate the implementation of the Government's nation building agenda, bringing forward the commencement of investment in national building projects to 2009.
The Economic Security Strategy will provide an injection of $10.4 billion directly into the economy. Additionally, Centrelink will be provided with $17.1 million, the Department of Veterans Affairs with $0.6 million and the Department of Families, Housing, Community Service and Indigenous Affairs with $0.3 million, to cover the costs of administering the Strategy.
Table A4: Economic Security Strategy
|
2007-08 $m |
2008-09 $m |
2009-10 $m |
2010-11 $m |
2011-12 $m |
Total $m |
|
|---|---|---|---|---|---|---|
| EXPENSE MEASURES | ||||||
| EDUCATION, EMPLOYMENT AND WORKPLACE RELATIONS | ||||||
| Department of Education, Employment and Workplace Relations | ||||||
| Economic Security Strategy | ||||||
| — lump sum payment to pensioners, seniors and carers | - | 92.0 | - | - | - | 92.0 |
| — Productivity Places Program — 56,000 additional places | - | 117.3 | 69.9 | - | - | 187.2 |
| Sub Total | - | 209.3 | 69.9 | - | - | 279.2 |
| FAMILIES, HOUSING, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS | ||||||
| Department of Families, Housing, Community Services and Indigenous Affairs | ||||||
| Economic Security Strategy | ||||||
| — lump sum payment to pensioners, seniors and carers | - | 4,372.9 | - | - | - | 4,372.9 |
| — one-off lump sum payment of $1,000 per child to low and middle income families | - | 3,851.0 | .. | - | - | 3,851.1 |
| Sub Total | - | 8,223.9 | .. | - | - | 8,224.0 |
| HUMAN SERVICES | ||||||
| Centrelink | ||||||
| Economic Security Strategy | ||||||
| — lump sum payment to pensioners, seniors and carers | - | 8.4 | - | - | - | 8.4 |
| — one-off lump sum payment of $1,000 per child to low and middle income families | - | 7.9 | 0.6 | 0.2 | - | 8.7 |
| Sub Total | - | 16.3 | 0.6 | 0.2 | - | 17.1 |
| TREASURY | ||||||
| Department of the Treasury | ||||||
| Economic Security Strategy | ||||||
| — First Home Owners Boost | - | 1,184.9 | 353.6 | - | - | 1,538.5 |
| Sub Total | - | 1,184.9 | 353.6 | - | - | 1,538.5 |
| VETERANS' AFFAIRS | ||||||
| Department of Veterans' Affairs | ||||||
| Economic Security Strategy | ||||||
| — lump sum payment to pensioners, seniors and carers | - | 401.4 | - | - | - | 401.4 |
| — one-off lump sum payment of $1,000 per child to low and middle income families | - | .. | - | - | - | .. |
| Sub Total | - | 401.4 | - | - | - | 401.4 |
| Total Expense measures | - | 10,035.8 | 424.1 | 0.2 | - | 10,460.2 |
| SUMMARY OF EXPENDITURE | ||||||
| Total expense measures | - | 10,035.8 | 424.1 | 0.2 | - | 10,460.2 |
| Total capital measures | - | - | - | - | - | - |
| Total expenditure | - | 10,035.8 | 424.1 | 0.2 | - | 10,460.2 |
| Total revenue measures | - | - | - | - | - | - |
| Net additional expenditure | - | 10,035.8 | 424.1 | 0.2 | - | 10,460.2 |
Economic Security Strategy — Productivity Places Program — 56,000 additional places
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Department of Education, Employment and Workplace Relations | - | 117.3 | 69.9 | - | - |
The Government will provide funding of $187.2 million over two years for an additional 56,000 places at the Certificate II, III and IV levels in 2008‑09 and 2009‑10. This includes 10,000 Structural Adjustment Places at the Certificate III level to provide specific retraining opportunities and targeted support for displaced workers. These places were announced as part of the $10.4 billion Economic Security Strategy package to strengthen and protect the Australian economy from the global financial crisis.
The Skilling Australia for the Future initiative will now provide up to 701,000 training places over the five years from 2007‑08 to 2011‑12 to ensure that Australians can develop the skills that industry needs. These places will comprise up to 309,000 JobSeeker and up to 392,000 Existing Worker places.
These places are in addition to the 15,000 Job Seeker places announced on 10 September 2008 by the Deputy Prime Minister. See also the related expense measure titled Productivity Places Program — 15,000 additional places in the Education, Employment and Workplace Relations portfolio.
Further information can be found in the press release of 14 October 2008 issued by the Prime Minister, the Deputy Prime Minister and the Treasurer.
Economic Security Strategy — lump sum payment to pensioners, seniors and carers
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Department of Families, Housing, Community Services and Indigenous Affairs | - | 4,372.9 | - | - | - |
| Department of Veterans' Affairs | - | 401.4 | - | - | - |
| Department of Education, Employment and Workplace Relations | - | 92.0 | - | - | - |
| Centrelink | - | 8.4 | - | - | - |
| Total | - | 4,874.6 | - | - | - |
As a part of the Economic Security Strategy, the Government will provide $4.9 billion, including administrative costs, in 2008‑09 for a one-off lump sum payment to pensioners, seniors and carers. A lump sum payment of $1,400 for singles and $2,100 for couples combined will be paid to recipients of the:
- Age Pension;
- Disability Support Pension;
- Carer Payment;
- Wife Pension;
- Widow B Pension;
- Partner Allowance;
- Widow Allowance;
- Bereavement Allowance;
- Veterans' Affairs Service Pension;
- Veterans' Income Support Supplement;
- Parenting Payment, Special Benefit or Austudy if the recipient is over Age Pension age; and
- Seniors Concession Allowance, paid to holders of a Commonwealth Seniors Health Card and eligible Veterans' Affairs Gold Card holders.
In addition, people who are receiving Carer Allowance will receive $1,000 for each eligible person in their care.
This measure is directed to assisting pensioners, seniors and carers to manage their costs of living pressures and to provide a fiscal stimulus to support economic growth. The payment is not taxable and will not be counted as income for social security or veterans' affairs purposes.
In addition to payments to individuals as part of the Government's $10.4 billion Economic Security Strategy, the measure includes administrative funding for Centrelink of $8.4 million and the Department of Veterans' Affairs of $0.6 million.
These payments will be made from 8 December 2008.
Further information can be found in the press release of 14 October 2008 issued by the Prime Minister and the Treasurer.
Economic Security Strategy — one-off lump sum payment of $1,000 per child to low and middle income families
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Department of Families, Housing, Community Services and Indigenous Affairs | - | 3,851.0 | .. | - | - |
| Centrelink | - | 7.9 | 0.6 | 0.2 | - |
| Department of Veterans' Affairs | - | .. | - | - | - |
| Total | - | 3,859.0 | 0.6 | 0.2 | - |
As part of the Economic Security Strategy, the Government will provide $3.9 billion in 2008‑09 to provide a one-off payment of $1,000 to families for each eligible child in their care who attracts Family Tax Benefit Part A, and each dependent child who does not attract Family Tax Benefit A, but attracts Youth Allowance, Abstudy or the Veterans' Children Education Scheme payment.
The payment is non-taxable and will not be counted as income for social security, family assistance or veterans' affairs purposes.
A small number of eligible beneficiaries, who claim Family Tax Benefit A as a lump sum, will receive their one-off payments from Centrelink in 2009‑10 or 2010‑11, after their 2008‑09 tax returns have been processed by the Australian Taxation Office. The relevant expenses are recognised in accrual terms in 2008‑09, with the associated payments recorded in cash terms when payments are made.
In addition to payments to individuals as part of the Government's $10.4 billion strategy, the measure includes Centrelink funding of $7.9 million in 2008‑09, $0.6 million in 2009‑10 and $0.2 million in 2010‑11 to deliver the payments.
Further information can be found in the press release of 14 October 2008 issued by the Prime Minister and the Treasurer.
Economic Security Strategy — First Home Owners Boost
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Department of the Treasury | - | 1,184.9 | 353.6 | - | - |
The Government will provide $1.5 billion over two years to temporarily supplement the First Home Owners Scheme grant to stimulate housing activity and assist first home buyers enter the housing market. The First Home Owners Boost will:
- increase the grant from $7,000 to $14,000 for the purchase of established homes; and
- increase the grant from $7,000 to $21,000 for the purchase of new homes.
The grants will be available for eligible first home buyers entering into contracts between 14 October 2008 and 30 June 2009 inclusive.
Further information on the First Home Owners Boost can be found in the press release of 14 October 2008 issued by the Prime Minister, the Treasurer and the Minister for Housing.
If www.budget.gov.au responds slowly or you are having trouble downloading a document, try one of the Budget Website Mirrors
Note: Where possible, Budget documents are available in HTML and for downloading in Portable Document Format(PDF). If you require further information on any of the tables or charts on this website, please contact The Treasury.
