Bailout Bill

[Darkzzz_]

http://news.bbc.co.uk/newsbeat/hi/newsbeat...000/7869277.stm

Giving away cash by the thousands. Would you take some or would you be too proud to wait in line?

[Master Fox]

Nice.

[Guest]

I wouldn't wait in line for it unless I LITERALLY had no money, seems like it'd be quite demeaning to be honest.

Just to draw attention to one particularly funny quote from the article

"Basically I just need to pay my bills and save money, and this money helps me do that. With my $50 I'm going to grab a McDonald's now."

[DB11]

I wouldn't wait in line for it unless I LITERALLY had no money, seems like it'd be quite demeaning to be honest.

Just to draw attention to one particularly funny quote from the article

"Basically I just need to pay my bills and save money, and this money helps me do that. With my $50 I'm going to grab a McDonald's now."

I was just about to put that up

[Darkzzz_]

I couldn't stand there either.

The Mcdonalds comment did make me chuckle too.

[lookwhaticando]

Fifty bucks will go a bloody long way in McDonald's.

They're always throwing out coupons over here for 'two can dine' kinda things, buy one get one free and so on... $50 would feed an army at McDonald's.

Or it'd feed a single fat American... for one meal.

[Simi]

No doubt if this happened in Britain people would just moan at the size of the line and then walk off when they got near the front.

[BoneDog]

I'd stand in line for a free 50 quid anyday. Could buy half an x-box

[SOCCERROO FOX]

Over here they announced that every worker earning under $100k a year. will get a $950 cash payment in April to help stimulate the economy.

[Guest]

Over here they announced that every worker earning under $100k a year. will get a $950 cash payment in April to help stimulate the economy.

I can understand the idea but surely it's coaxing people into spending that money rather than saving it that is the problem. It's no good chucking tons of money at people to stimulate the economy if they all decide that with their future being rather insecure, they'd be better off holding on to it.

[Darkzzz_]

I love Australia.

What a country.

[SOCCERROO FOX]

I can understand the idea but surely it's coaxing people into spending that money rather than saving it that is the problem. It's no good chucking tons of money at people to stimulate the economy if they all decide that with their future being rather insecure, they'd be better off holding on to it.

Yeah, i know, but $950 bucks is $950 bucks so i'm not complaing. They did annouce other projects to help generate jobs aswell.

[SOCCERROO FOX]

THE Government's hope that a $12.7 billion windfall for taxpayers will translate into a job-creating spending spree may be thwarted by debt conscious Aussies, a news.com.au readers' poll indicates.

Asked whether they would use their share of the one-off payment to spend, save or pay off debt, only one quarter of readers polled by 4.05pm (AEST) said they would spend it.

52 per cent would pay off debt, and 23 per cent would save the money, the poll found.

Vote: Spend, save or repay?

Most readers were happy to follow the advise posted in comments by Adam Taylor of Perth:

"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.

Add your vote! Spend it Save it Pay off debt Your Say

There will be some that need this money for everyday living, others that don't and spluge on the 'nice to have' consumer goods. A nice way to invest in the lives of the...

(Read More)

John B of Nth Sydney "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. "

Max Power of Brisbane however seemed happy to spend:

"I have a 52inch full hd plasma, 36 inch HD LCD Tv, Blu Ray Player, a brand new Ford Falcon XR6 Turbo, XBox 360 and Nintendo Wii, and I will be getting the $950. I have a 100% certainty I won't lose my job, I know I am getting two pay rises this year, yep times are tough."

The payments were part of the Federal Government's $42 billion nation building and employment economic stimulus plan aimed at retaining 90,000 jobs over the next two years.

The Budget is now expected to sink into a $22.5billion deficit in the 2008/09 financial year, a massive deterioration from the $5.4 billion surplus projected, and deepening into deficits of over $30 billion in the following two years.

So, are you feeling stimulated? Tell us below.

The Reserve Bank also acted to help spark the slowing economy today.

At 2.30pm (AEDT) the Reserve Bank cut the official interest rate to 3.25 per cent, the lowest rate in 45 years.

Out of the big banks, Westpac and ANZ have passed on the full 100 point cut to their standard variable home loans. Commonwealth and NAB say rates are currently under review.

Treasurer Wayne Swan said other banks should follow the RBA's lead "in a timely way".

RBA governor Glenn Stevens said the board took into account the package of measures announced by the Government earlier today.

"The combination of expansionary monetary and fiscal policies now in place will help to cushion the Australian economy from the contractionary forces coming from abroad," he said.

The one percentage point cut will save home owners an average of $186 a month in mortgage repayments.

Centrepiece

Billed as a "rapid response" to the deteriorating global economic conditions, the centrepiece of the Government's plan is $28.8 billion of spending on schools, housing, energy efficiency in homes, community infrastructure and roads, and support to small business to be delivered mostly in 2009-10 and 2010-11.

The remaining third of the plan is an immediate injection of $12.7 billion in one-off bonus payments of $950 each for low- and middle-income households and individuals through five bonuses to be paid in the next few weeks.

It means 8.7 million workers earning $100,000 or less will receive a lump sum payment of up to $950 each from April.

About 1.5 million single-income families will also receive the payment, provided they receive Family Tax Benefit Part B, in the fortnight beginning March 11.

But the bad news is the unemployment rate is predicted to rise to 7 per cent by mid-next year, up from 4.5 per cent in December.

The package includes:

- $12.7 billion for immediate one-off payments to working Australians, families with school-age children, farmers, single income families and for those undergoing training;

- $14.7 billion to be invested in school infrastructure and maintenance and bringing forward funding for trade training centres;

- $6.6 billion for to increase the national stock of public and community housing by about 20,000;

- $3.9 billion to provide free insulation to 2.7 million homes and solar hot water rebates;

- $890 million to fix regional roads and blackspots, to install railway boom gates and for regional and local government infrastructure;

- $2.7 billion small and general business tax break to provide deductions for some equipment purchases before the end of June 2009.

Recession buster?

Gross domestic product (GDP) is now expected to grow by just 1.0 per cent in the 2008/09 and by only 0.75 per cent the following year, compared with respective forecasts of 2.0 per cent and 2.25 per cent made in November.

[Guest]

Yeah, i know, but $950 bucks is $950 bucks so i'm not complaing. They did annouce other projects to help generate jobs aswell.

Fair play, I wouldn't complain if I was given money either

[lildave3]

Can I sleep while i'm in this line and get someone to push me along?

If so, i'm game.