The Government is supporting growth and jobs now, and delivering the investments needed to strengthen the economy for the future. The net measures in this Budget raise the level of GDP by ¾ of a per cent in 2009‑10, providing an additional boost to demand when the economy needs it most.
Balanced fiscal stimulus
The Government has balanced its fiscal policy response to the global recession between short‑ and long‑term priorities.
Measures involving bonus payments to low‑ and middle‑income Australians are adding immediately to demand when it is most needed, and where it will be most effective.
This is being supported by direct investment in schools, energy efficient homes and through the First Home Owners Boost.
The net measures in the Budget raise the level of GDP by ¾ of a per cent in 2009‑10 the period when the economy is forecast to be weakest.
Measures have been targeted to provide additional support to those on lower incomes, who are often credit constrained and most likely to spend additional payments.
To further support housing activity and the construction industry, the Government has decided to extend the First Home Owners Boost for an additional six months at a cost of $539 million.
The Boost will continue at current levels until 30 September 2009. From 1 October to 31 December 2009, the Boost will halve to $10,500 for established homes and $14,000 for new homes, including the $7,000 First Home Owners Scheme grant.
Investing in drivers of growth
Over time, the immediate stimulus will scale back, transitioning to investments in long‑term infrastructure projects, which will provide a larger and more sustained boost to the economy.
The infrastructure measures delivered in this Budget represent a critical investment in the drivers of Australia's long‑run economic growth. They will provide a much needed boost to productivity, to jobs and to our capacity to export.
By investing in productive capacity, Australia will be well positioned to take advantage of the economic recovery.
Allocation of fiscal stimulus