Government Stimulus Package 2009
On 3 February 2009, the federal government made a series of policy announcements aimed at stimulating the Australian economy- Nation Building and Job Plan.
The most relevant announcements were regarding one-off lump sum payments for:
- Eligible Australian workers earning $100,000 or less of taxable income in 2007/08
- Single income families
- Low to middle income families with school aged children
- Students and those not employed intending to return to study
Additionally, an increased tax break for businesses acquiring or improving certain assets is proposed.
Bonuses
Eligible Australian Workers
A tax free, non Centrelink assessable lump sum bonus of up to $950 will be payable to Australian resident taxpayers who earned less than $100,000 in the 2007/08 tax year.
To be eligible for the bonus, an indivisual must:
- Be an australian resident taxpayer
- Enter their 2007/08 tax return by the end of June 2009 or by the deferred date granted by the ATO
- Have a net tax liability in 2007/08 greater than zero.
- Have taxable income up to and including $100,000 in 2007/08
| Taxable Income | Bonus amount |
| <= $80,000 | $950 |
| $80,001 - $90,000 | $650 |
| $90,001 - $100,000 | $300 |
No application needs to be made; the ATO will automatically start making the payments by direct debit or cheque from April 2009.
Single income families
A tax free, non-Centrelink assessable lump sum bonus of $950 per family will be payable to families who rely predominantly on one income earner.
To qualify for the bonus, a family must qualify for Family Tax Benefit (FTB) Part B for the period including 3 February 2009. Those who receive it as a lump sum will be eligible.
For those who receive FTB Part B periodically, the payments will be made automatically by Centrelink and will commence from 11 March 2009.
Low to middle income families with school aged children
A lump sum bonus of $950 per eligible child will be payable to low to middle income families with school aged children.
To qualify for the bonus, a family must qualify for Family Tax Benefit (FTB) Part A in the period including 3 February 2008. $950 will be payable per school aged child (4 – 18 years of age). Those who receive FTB Part A periodically as well as those who receive it as alump sum will be eligible.
For those who receive FTB Part A periodically, the payments will be made automatically by Centrelink and will commence from 11 March 2009.
Training and learning Bonus
A non-taxable, non-Centrelink assessable lump sum bonus of $950 will be payable to eligible student social security recipients. There are two categories of eligibility for this bonus.
Category 1
Those eligible to receive:
- Youth allowance (only students and apprentices)
- Austudy
- ABSTUDY
- Payments under Veterans’ Children Education Scheme
- Payments under the Military Rehabilitation and Compensation Act Education and Training Scheme
- FTB Part A (for each eligible dependant, full-time student aged 21-24)
- Sickness Allowance and Special Benefit (if under age pension age).
For the period including 3 February 2009 will qualify for the bonus payment.
If a student establishes eligibility for a bonus in the previous section, they will not qualify for a raining and learning bonus as well.
Category 2
From 1 January 2009 until 30 June 2010, recipients of the Education Entry Payment (EdEP) will receive an additional payment of $950 over and above their exisiting payment of $208. The qualifying period for EdEP will be reduced from 12 months to one month.
Those who receive the following payments may qualify for the EdEP:
- Newstart Allowance
- Parenting Payment
- Youth Allowance (for others)
- Partner Allowance
- Widow Allowance
- Carer Payment (adult)
- Carer Payment (child)
- Disablity Support Pension
- Special Benefit (in some circumstances)
- Widow B Pension
- Wife Pension
It needs to be noted that all the above one-off payments are subject to the passage of legislation. Further details will be provided as the legislation progresses through Parliament.
