Government unveils $42 billion economic stimulus package

MORE than 10.6 million Australians will receive cash bonuses under a $42b Government plan to boost the economy.

As the Reserve Bank prepares to announce another cut in official interest rates this afternoon, the Government has released details of its plan to support up to 90,000 jobs. It also revealed a $22.4 billion fiscal budget deficit will blow out to $33.3 billion by 2009-10.

Under the economic stimulus package:
FROM March, families eligible for Family Tax Benefit Part A will receive a $950 Back to School Bonus for each eligible child.One-off $950 payments will also be made to: AROUND 1.5 million single-income families who receive Family Tax Benefit Part B; FARMERS and rural-dependent small business owners receiving exceptional circumstances assistance;YOUTH Allowance, Austudy, Abstudy and Education Entry Payment recipients;FROM April, workers earning up to and including $80,000 will get a $950 tax bonus;THOSE earning $80,000 - $90,000 will get $650;PEOPLE earning between $90,000 - $100,000 will receive $300.

The Government will also: INSTALL free ceiling insulation in 2.7 million homes;CONSTRUCT 20,000 public and social housing dwellings and 802 Defence houses;DOUBLE the rebate to landlords who install insulation in rental properties to $1000 INCREASE the Solar Hot Water Rebate from $1000 to $1600;SPEND $850 million on fixing roads, building boom gates for rail crossings and building community infrastructure such as town halls, libraries and sport centres.

Schools will also benefit: ALL 9540 Australian schools will receive up to $200,000 for maintenance and building works; EVERY primary, special and combined Prep - Year 12 school will receive money for large-scale infrastructure such as libraries and multi-purpose halls;ABOUT 500 new science laboratories and language learning centres will be constructed in high schools.Meanwhile, businesses will be eligible for a share of $2.7 billion worth of investment tax breaks. Prime Minister Kevin Rudd and Treasurer Wayne Swan will hold a press conference this afternoon to discuss the plan and the budget and economic outlook.