Business and government sectors have reacted positively to the Rudd governments’ 10.4 billion finance package

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Seniors to benefit

Pensioners will not have to scrape by this Christmas thanks to lump sum payments from the federal government, National Seniors Australia says.

The government announced today that single-aged pensioners will receive lump sum payments of $1,400 and couples $2,100 in December as part its $10.4 billion package to help Australia counter the global economic crisis.

The payments will also be available to low-income self-funded retirees who have borne the brunt of superannuation losses.

National Seniors Australia, which has a membership of 280,000 people aged 50 years an over, welcomed the government's plans.

"The government had clearly recognised the pressure older Australians are under," chief executive Michael O'Neill said in a statement.

Pensioners would be able to buy Christmas presents for their grandchildren, put ham on the table and fix the leaky roof, he said.

"This means single-aged pensioners, in particular, who usually barely scrape by, will have little reason to do without this Christmas."

Helping the vulnerable

The Rudd government's economic security package will greatly help some of Australia's most vulnerable people, the Australian Council of Social Service says.

ACOSS president Lin Hatfield-Dodds described as "fantastic" planned payments to pensioners and carers.

Pensioners, carers and veterans will receive a pre-Christmas bonus payment - $1,400 for singles and $2,100 for couples, under a $10.4 billion package announced earlier today.

But it would have been preferable if the extra money came in regular, fortnightly payments instead of a lump sum, Ms Hatfield-Dodd said.

ACOSS is hoping for a future increase in the base rate of the pension.

It was a pity though that people on the dole would not receive a bonus payment.

"We were disappointed that people on unemployment benefits were not included as we really do believe that these are one of Australia's most vulnerable groups," Ms Hatfield-Dodds told reporters in Canberra.

Building sector pleased 

Builders said that increasing the first home owners grant would buoy the domestic economy and encourage the construction of more new homes.

An extra 30,000 new homes should be built each year to provide for the nation's needs, the Master Builders Association said.

Chief economist Peter Jones said the decision to increase grants - which double to $14,000 for established homes, and climb to $21,000 for newly-constructed homes - was welcome and would provide a short-term stimulus to the stalled housing market.

"When we have particularly confronting circumstances, where prices have stalled, it's a soft market, we're underbuilding. We think this is an appropriate initiative," he told reporters.

Most new homes were purchased by people who had already bought elsewhere, but Mr Jones said some first home buyers did buy new homes.

The increased grants had the potential to push up house prices, but increasing the amounts was the right thing to do, he said.

Christmas retail boost on the cards

The Australian Retailers' Association said the package could boost the Christmas holiday shopping season.

"Prime Minister Rudd's plans for a Christmas bonus is great news for consumers ... and even better news for retailers hard hit by months of reduced consumer demand," executive director Richard Evans said in a statement.

The global financial crisis made it difficult to make sales projections for the Christmas period, he said.

"The retail sales cycle peaked last Christmas with a year-on-year growth of around 7.6 per cent but, up until last week, we were expecting this to drop to a year-on-year growth of 4.5 per cent.

"This equates to retail sales of approximately $36.9 billion, up from the $35.4 billion projected for last year."

Last week's interest rate cut and the government's package had provided some relief to retailers, Mr Evans said.

"If consumers stop spending, jobs are at threat."

The 'working-class' man

ACTU president Sharan Burrow said the package would help working Australians and their families deal with rising petrol, housing, food and other living costs.

"This will be especially useful in the lead-up to Christmas and the holiday season, a time when we know many low and middle income families have to dip into savings or max out their credit card.

"These measures will provide a necessary immediate injection into the local economy that will counter the impact of the global financial crisis," she said.

Mining and rescources welcome funding

Miners have welcomed funding for an additional 56,000 training places.

The resource sector would need 70,000 more employees, during the next five to six years, than it presently employs, the Australian Mines and Metals Association said.

"Productivity initiatives, including increasing the skill pool available to the resources sector, is a sound economic decision," chief executive Steve Knott said in a statement.

Carers 'looking forward' to bonus

Carers say the planned bonus payments gave them something to look forward to this Christmas.

Carers are eligible for a payment of $1,400 for singles and $2,100 for a couple, plus $1,000 for each eligible person in their care.

"Those hardest hit by the spiralling costs of living will now have something to look forward to as Christmas approaches," Carers

Australia chief executive Joan Hughes said in a statement.

"This is an important victory for all those left out of previous proposals.

"I am pleased to see the government has listened and is now taking real action."

Business groups confident

Business groups said the package would build confidence in the Australian economy.

The Business Council of Australia said it was the right response to the threat of an economic slowdown and was "well-timed, well-targeted, and temporary".

"It targets the people most likely to spend it, and most likely to need it - that is, lower-income households," council president Greig Gailey said.

The temporary nature of the package was "vital".

"By providing one-off and time-limited payments, Australia keeps the capacity to return to budget surpluses again once this emergency is over," he said.

The Australian Industry Group said the spending measures complemented last week's interest rate cut and steps to underwrite confidence in the banking system.

"These spending measures are unlikely to have a significant impact on underlying inflation," chief executive Heather Ridout said.

"They are a one-off or temporary injection of cash and, as such, should have minimal ongoing impacts on the structural surplus, inflation or interest rates."

Real estate sector hail the move

Property developers and real estate agents have hailed Prime Minister Kevin Rudd for boosting the first home buyers' grant.

The government today said it would invest about $1.5 billion in the housing market over 2008/09 and 2009/10, as part of a $10.4 billion package to help Australia counter the global economic crisis.

The payment under the first home buyers scheme will be doubled from $7,000 to $14,000 for established homes, while first time owners of newly constructed homes will receive an extra $14,000 taking their total grant to $21,000.

Step forward for Urban development

The Urban Development Institute of Australia (UDIA) said the beefed-up grants would have a multiplier effect on the economy when new home buyers go out and buy furniture and white goods.

"This will give first home buyers a chimney to hang their stocking on this Christmas," UDIA NSW chief executive Scott Woodcock said in a statement.

Urban Taskforce Australia (UTA) said the funding boost would help first home buyers, but state and local governments must follow suit to stimulate new home construction.

"The lack of new housing supply is hurting people across Australia, particularly in Sydney," UTA chief executive Aaron Gadiel said in a statement.

"Without a strong supply of new housing, rents will continue to skyrocket and first home buyers will struggle even more to save a deposit for a home of their own."

NSW Real Estate Institute president Steve Martin said the initiative would boost housing affordability.

"The tripling of the new home buyer's grant to $21,000 is a positive signal to developers to start building new stock and adding it to the market, " he said.

"This is great news for the property market as it will bring new home buyers in and create jobs through the construction of new dwellings."