Australians: What are you doing with your stimulus money?
Cheques are in the mail. Has anyone gotten theirs yet? I got my money from centrelink but not the ATO. I'm most likely going to end up using mine for my plane ticket when I go on exchange. I'll try and fly qantas though. I have to admit I was pretty against it last time, oh how things have changed now that i'm getting something.
Swan talks stimulus with cheques in the mail
As payments of up to $900 from the latest stimulus package start rolling out, Treasurer Wayne Swan has conceded that there may yet be more stimulus to come.
And, if market expectations turn out to be accurate. that would be on top of another interest rate cut when the Reserve Bank meets tomorrow.
The Government's last round of stimulus payments was criticised when economic data revealed many Australians had saved the money, or used it to pay off debt.
But Mr Swan says he is expecting taxpayers to spend the latest bonus.
"From my perspective, I believe that Australians will spend this money, and that's a good thing in a global recession," he said.
"I think what we saw, particularly through the economic security package over Christmas and through January, was a lot of responsible spending, particularly from Australians who are buying the basics of life."
But while the Treasurer is confident the latest bonus will be spent, he has not ruled out a third round of cash payments.
"If further measures are required they will be taken responsibly," he said.
Opposition Leader Malcolm Turnbull says the last cash payments were not spent and there is no reason to believe it will be any different this time around.
"This payment is an example, a repeat of the cash splash in December, 83 per cent of which we're told was saved," he said.
"It was said it would create 75,000 jobs, there's no evidence it created one. What Mr Rudd is doing is spending and spending, running up debt."
The process of formulating the Budget, due to be handed down in just five weeks, is now well underway.
There is every indication that with revenue projections continuing to fall, the Government will have to make cuts in other programs to put some limit on the expected deficit blowout.
The Opposition says the Government is taking a Jekyll and Hyde approach to fiscal planning
"Is he Dr Jekyll and Mr Hyde, a spendthrift on one hand and then trying to cut back harshly on the other?" Mr Turnbull said.
Both sides will be watching the next set of official unemployment figures on Thursday, with the latest ANZ job ads survey suggesting they could be bad.
The ANZ survey released on Monday showed the number of advertisements dropped by 8.5 per cent during March, to take the annual decline to almost 45 per cent.