It was announced yesterday that the Rudd Government will be pumping $42 Billion dollars into the economy to stave off recession and save jobs.

The stimulus package includes a $28.8 billion package for schools, housing and roads, and a $12.7 billion handout to low- and middle-income earners. 

The main points from this package are:

·         Tax bonus of $950 for those earning up to $80,000, and smaller amounts for those earning up to $100,000.

·         $14.7bn for school infrastructure and maintenance and trade training centres;

·         $6.6bn to boost  public housing by about 20,000 new homes;

·         $3.9bn for free insulation to 2.7 million homes and solar hot water rebates;

·         $890m for regional roads and blackspots, railway boom gates;

·         $2.7bn small and general business tax break to provide deductions for some equipment purchases before the end of June 2009;

·         $12.7 bn for one-off payments to working Australians, families with school-age children, farmers, single income families and for those undergoing training.

But will this stimulus package help the average tax-payer and reduce the rising unemployment rates?  I think we are in for a grim year as even with the Rudd Government’s 42 billion stimulus package as unemployment rates are tipped to increase by 7% next year.

For this stimulus package to help our economy the Government needs us to spend our bonuses and one-off payments to boost employment and growth. 

How will you spend your cut of the stimulus package?  Are you going to use it to pay off debt? Save it or spend it?