Friday the 13th proved lucky for some as the Labor governments’ stimulus package was passed by the Federal Senate. This package will inject approximately $42 Billion directly into the Australian economy with the aim of preventing a recession or, at the very least, easing the affects of the current economic slowdown which is affecting the entire globe.

The following is a summary of the key points to come out of the stimulus package:

» Australian workers will receive a cash handout based on their taxable income as follows:

You must have lodged your 2008 tax return to be eligible. Anyone who has not lodged their 2008 tax return will have until the end of June 2009 to lodge their return and still be eligible for the cash handout. The Australian Tax Office will distribute the cash handouts commencing in April 2009.

» Single income families (who receive FTB Part B) will receive an additional $900 where the breadwinner earns up to $150,000.

» Low and middle income families (who receive FTB Part A) will receive $950 to assist with the education costs of all children aged between 4 and 18. This will be in addition to the Education Tax Refund scheme (outlined above).

» Students who receive Austudy, Youth Allowance or the Australian postgraduate award, will be eligible for a $950 training and learning bonus. Originally the student had to be enrolled by 3 February 2009 to be eligible, but this has now been extended to 31 March 2009.

» Over 21,000 farmers already receiving the exceptional circumstances payment will now receive a $950 hardship bonus. You must be receiving the exceptional circumstances payment to be eligible.

» Environmentally, residential homes will receive free insulation and the solar hot water rebate will be increased from $1,000 to $1,600 and will not be means-tested. You are only eligible for one of these options, you can not receive both.

» Landlords have until 30 June 2011 to take advantage of the landlords rebate which has risen from $500 to $1,000 which can be used for insulation costs

» Building and construction packages intend to create thousands of jobs

» Business Investment Allowance which is discussed in a later section