December 12, 2008 11:20am- The Australian

THE Federal Government will spend another $2.5 billion on a "national building plan" which the Prime Minister has said could create an extra 32,000 jobs.

Kevin Rudd said the plan was designed to help the economy survive the global financial crisis and came in addition to the $10 billion stimulus package already announced.

The package totals $4.7 billion and includes more than $1 billion for new rail projects and another $1 billion for universities and TAFEs.

There are also breaks for businesses, with a tax cut for small businesses and a $1.6 billion, temporary tax deduction for capital investment.

Yesterday, official figures showed the unemployment rate had risen to 4.4 per cent with the loss of about 15,000 jobs in November. Analysts expect the jobless rate to hit 6 per cent next year.

The Prime Minister says the federal Budget will stay in surplus despite the heavy government spending. He says $2.5 billion of the funding package is "new" money, with the rest coming from bringing forward already announced projects.

The education investment is made up of $500 million for "teaching and student spaces" for universities and the same amount for TAFE centres.

The $1.2 billion rail announcement includes major work in the Hunter region of New South Wales. Mr Rudd said the project would double export capacity from Newcastle.

Another $711 million in funding for road projects will be accelerated.

Businesses with an annual turnover under $2 million will be allowed to postpone 20 per cent of their next Pay As You Go (PAYG) tax instalment until they make their annual return. That will save the businesses $440 million in tax payments.

Mr Rudd said the package would be spent in parts over the next three years.

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POSTED ON 8TH DECEMBER 2008 - THE AUSTRALIAN

"CASH RECEPIENTS URGED TO SPEND"

KEVIN Rudd has urged the nation's pensioners and families to "go out and spend the money" as the first wave of his cash handout plan to avert a recession hits bank accounts from today.

With just over a fortnight to Christmas, the Prime Minister yesterday suggested it was the patriotic duty of recipients to use the money to go shopping, but warned tough times were ahead.

And economists admitted it did not really matter what pensioners and families spent the money on, as long as they did not hoard it.

"By spending their payments, families and pensioners will help create Australian jobs and strengthen the Australian economy," Mr Rudd said. "I urge families and pensioners who have been doing it tough to spend their payments in a responsible way to make their family Christmas all the more special."

The Government is handing over a total of $4.8 billion to pensioners and $3.9 billion to working families.

Eligible families will receive $1000 for each child. Single aged pensioners will receive lump-sum payments of $1400 and couples $2100. But concerns remain on the impact of the cash in some disadvantaged communities where recipients may face pressure to hand over the cash for alcohol and drugs.

Malcolm Turnbull, who has previously suggested tax cuts might have been a better option to stimulate the economy, said it was a matter for individuals how they spent the cash.

"I have got no doubt that the vast majority of Australian families will think very carefully about how they spend that money, and spend it in a prudent way that is best suited to their own particular situation," the Opposition Leader said.

Retailers claim the resolve of many recipients to use the money to pay off debts has weakened as Christmas approaches.

Australian National Retail Association chief executive Margy Osmond said the proportion of people who said the one-off sum would go towards their mortgages now stood at 11 per cent, down from the 19 per cent in November and October when official interest rates were higher.

Regardless of what people spend their money on - whether it be household appliances, a night out or a Chinese-made toy for under the Christmas tree - economists said it would stimulate the economy.

ANZ chief economist Saul Eslake said the national accounts released last week showed that people generally saved the tax cuts delivered in April and used them to pay off their credit cuts or reduce their mortgages.

"In that sense, the tax cuts didn't really stimulate economic growth, although it is possible growth might have been negative without any tax cuts," he said.

CommSec chief economist Craig James said even buying imported goods would boost the retailing sector, with the effect felt throughout the economy.

"If retailers sell more goods, whether Australian products or not, that will maintain employment levels in small- and medium-sized consumer-focused businesses," Mr James said.

For Shirley Laycock, who turns 84 on Friday, the one-off $1400 payment will provide a buffer for times ahead. The handout will go towards paying her monthly medication bill of almost $140, as well as clothing and maybe a lottery ticket or two.

"I'm on a lot of medication, butyou know you've still got to buy clothing and things, so it'll bea comfort," said the ex-servicewoman, a resident at War Vets, a retirement village run by RSL Lifecare at Narrabeen on Sydney's northern beaches.

About 85 per cent of Ms Laycock's fortnightly pension of about $500 is deducted to pay forfood and accommodation. "Although I'm in a hostel you still have to buy things like toiletries and clothing," she said.

"With this, I don't have to worry so much."

Asked whether the money would finance the Christmas wish-list for her four children, nine grandchildren and seven great-grandchildren, the former dressmaker was adamant.

"The family won't let me buy anything for them," said Ms Laycock, a member of the Australian Women's Army Service for more than 40 years.

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Shops cash-in on handouts

By Kate Sikora

December 07, 2008 10:01pm

MAJOR retailers are preparing to cash in on the Government's $10.4 billion in handouts by enticing recipients to spend up big for Christmas.

The first of the handouts aimed at kickstarting the economy will arrive today.

Myer has taken out full page advertisements in newspapers, based on its Christmas True Love campaign.

With its slogan "My True Rudd Gave to Me", the store will be giving away a $50 gift card with $500 purchases.

Prime Minister Kevin Rudd announced the bonus in October following fears of an economic downturn.

The lump-sum payment of up to $1100 for individuals is to encourage spending to stave off a recession.

But while Myer has taken out the ads, other retailers such as Woolworths believe people have already determined what they will do with their share.

"We are not doing anything different to what we would normally do prior to Christmas," a Woolworths spokeswoman said.

"All our indications are that many people will be putting the money towards their credit card debt."

At David Jones, a wish list has been devised for ways people could spend their extra cash.

iPods and electrical appliances are expected to be popular on people's lists as they take advantage of pre-Christmas sales.

On-the-spot sales will be held around Myer stores every day to drive spending as the bonuses land in people's bank accounts over the next fortnight.

"If people spend the money, then it will help the country from not going into a recession," Myer spokesman Mitch Caitlin said.

"We have been preparing for six months."

Mr Rudd yesterday had a simple message for the thousands of families who will share the  handouts: "Go out and spend."

"Spending this money . . . will help create more jobs across Australia and strengthen the economy," the Prime Minister said yesterday.

The handout follows figures showing the economy barely grew in the three months to September.

This economic stimulus will flow to 1.74 million people in NSW - a quarter of the population.

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AUSSIE ECONOMY STILL STRONG

Posted Oct 14, 2008

The Prime Minister Kevin Rudd is due to give an address to the nation tonight, following the financial turmoil of recent weeks.

The federal government had earlier unveiled a $10.4 billion package to buffer the Australian economy against the global financial crisis.

Pensioners, families, and first home buyers are the three big winners from the Economic Security Strategy unveiled by Prime Minister Kevin Rudd and Treasurer Wayne Swan .

The government also will speed up spending on infrastructure, and almost double training places.

Mr Rudd said it was time for fast, decisive action.

"The global financial crisis has entered into a new, dangerous, and damaging phase," he told reporters in Canberra.

"That's why the government has decided to act decisively and early on the question of this economic security strategy for the future.

"(It's) decisive action, responsible action, early action, all in Australia's interests."

Mr Swan said Australia was in the midst of the worst financial crisis ever to confront the modern market economy.

"This is an important package, an important strengthening of the Australian economy," Mr Swan said.

"We have acted to strengthen our financial system and to strengthen the stability of our banks."

Australia was better placed than many countries in the current financial turmoil but was not immune to it, Mr Swan said.

The package follows Sunday's announcement of a three-pronged plan to further ensure the stability of the Australian financial system, including a government guarantee for up to $700 billion in deposits.

Mr Rudd said the budget would stay in surplus.

"We're confident that we'll still be able to deliver a comfortable surplus going forward," he said.

The strategy was equivalent to one per cent of GDP.

The prime minister said it was time to spend part of the federal government's $21.7 billion budget surplus.

"The purpose of a surplus in the budget is to deal with tough times and tough times are with us," Mr Rudd said.

"Therefore, the government intends to deploy this surplus in the ways in which I have just described."

The strategy includes five key measures:

$4.8 billion for an immediate down payment on long term pension reform;
$3.9 billion in support payments for low and middle income families;
$1.5 billion investment to help first home buyers buy a home;
$187 million to create 56,000 new training places in 2008-09;
Accelerate the implementation of the government's three nation building funds and bring forward the commencement of infrastructure investment.
Australia's four million pensioners, carers, and seniors will benefit from December 8.

Single pensioners will receive a lump sum payment of $1,400 while pensioner couples will receive $2,100.

People receiving the carers allowance will also receive $1,000 for each eligible person in their care.

About 3.9 million Australian children will receive a $1,000 one-off benefit from December 8.

Families who receive Family Tax Benefit (A), families with children who receive the Youth Allowance, Abstudy or a benefit from the Veteran Children's Education scheme will be eligible.

First home buyers will be eligible for grants of up to $21,000 designed to stimulate housing activity.

The scheme will be time-limited. All contracts entered into by June 30 next year will be eligible for the new assistance.

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.

The government will invest about $1.5 billion in the housing market over 2008/09 and 2009/10 through this initiative.

INDO-ASIA NEWS SERVICE

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Indian Migrants in Australia

Posted Jul 24, 2008

Indians second largest skilled migrants group in Australia
While almost a quarter of the temporary workers came from the UK,
India came second with 14 percent, followed by the Philippines at nine
percent and South Africa at six percent.

Sydney: Indians were the second largest group of skilled migrants who
arrived on Australian shores under the temporary skilled migration
programme in 2007-2008, according to new data released Tuesday by
Minister for Immigration and Citizenship Chris Evans.

While almost a quarter of the temporary workers came from the UK,
India came second with 14 percent followed by the Philippines at nine
percent and South Africa at six percent.

To meet severe national skills shortages, especially in professional
occupations and highly skilled jobs, as many as 110,570 visas were
granted under the temporary skilled migration programme last year, a
27 percent increase on the previous year's 87,310.

As many as 81 percent of 457 (work) visa holders were employed in
professional occupations and highly skilled jobs with computing
professionals, registered nurses, and business and information
professionals being the top three listed occupations for temporary
overseas workers.

The minimum salary Levels for 457 visa holders will increase by 3.8
percent beginning Aug 1 next, after remaining frozen for over two
years. The average nominated base salary for the temporary workers is
about A$ 73,100.

Evans emphasised that the programme is not a cheap labour scheme and
the government would not tolerate the exploitation of workers.

"Although incidents of migrant worker exploitation are the exception
rather than the rule, the government is moving to improve the
protections in place to prevent exploitation of temporary skilled
workers from overseas," Evans said in a statement.

Many of those coming under the temporary skilled migration programme
are choosing to become permanent residents. Almost 25,000 people on
457 visas became permanent residents during 2007-08, up 30 percent
compared to the previous year.

INDO-ASIA NEWS SERVICE

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Skilled Migration Gets Boost

Posted Tue May 13, 2008 9:00pm AEST

The Federal Government will boost Australia's skilled migrant intake 30 per cent to record levels in a bid to overcome a shortage of skilled workers.

As part of tonight's Federal Budget - the first by Kevin Rudd's Labor Government - Immigration Minister Chris Evans announced an extra 31,000 skilled migrants will be allowed into Australia permanently in 2008-2009.

Mr Evans says the extra allocation will take skilled migrant numbers to 133,500 for the year, by far the largest component of the country's total migrant intake of 190,300.

He said former prime minister John Howard's government had not allowed enough skilled migrants into Australia, leaving employers struggling to fill vacancies.

"This record increase in the number of places in the permanent skilled migration program will help ease Australia's skills shortage and help fight inflation," he said.

Mr Evans says research shows that labour market participation by permanent skilled migrants is more than 90 per cent.

In addition, he said more than 100,000 temporary skilled migrants were expected in Australia in 2008-2009.

Mr Evans announced another break with the Howard government's policies with the abolition of the controversial Temporary Protection Visa (TPV) system for asylum seekers.

Under the system, asylum seekers who arrived by boat were eligible only for TPVs, meaning they had no travel rights, reduced access to refugee settlement services and could not be reunited with family members already in Australia.

Mr Evans labelled the system unjust and said about 1,000 refugees holding TPVs would be granted permanent visas, provided they met security and character requirements.

"The Temporary Protection Visa was one of the worst aspects of the Howard government's punitive treatment of refugees, many of whom had suffered enormously before fleeing to Australia," he said.

"There is clear evidence that the TPV arrangements did nothing to prevent unauthorised boat arrivals."

- AFP

ABC NEWS

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Prime Minister Kevin Rudd says he will consider making changes to Australia's

migration policy as a way of addressing the skills shortage affecting the economy.

Earlier today Woodside officials in Karratha told Mr. Rudd the company will need

foreign workers as part of a major expansion of its North West gas processing plant.

Yesterday Mr. Rudd promised an infrastructure task force as part of his plan to

combat inflation.

Mr. Rudd says he will look at changes to visas for foreign workers to meet the

shortfall of skilled workers.

The Prime Minister promised greater investment in skills and training and calibrating the migration program to the needs of this economy.

Decision welcomed

The Chamber of Minerals and Energy has welcomed the Prime Minister Kevin Rudd's suggestion he may consider increasing the number of foreign workers to address the skills shortage.

The Chamber's Chief Executive Officer Reg Howard-Smith says it is good to see all

viable options will be reviewed.

"We will continue to talk to the Federal Government about a range of issues to do

 with immigration and other skilling issues but we are very pleased with the initial response," he said.

"Workers are definitely needed to come to Australia, the resource sector is an industry which has the world's best practice when it comes to occupation health and safety.

Yes, Western Australia certainly needs people coming from overseas."

- ABC News