A second Federal Government stimulus package and emergency tax cuts may be on the way after Prime Minister Kevin Rudd and Treasurer Wayne Swan hinted they were considering a number of measures to help boost the economy.
A second Federal Government stimulus package and emergency tax cuts may be on the way after Prime Minister Kevin Rudd and Treasurer Wayne Swan hinted they were considering a number of measures to help boost the economy.
But Rudd has also warned businesses to minimise job cuts, and called for workers to forgo pay rises to help keep the economy out of recession.
Talk of emergency tax cuts began during a speech in Sydney yesterday, where Swan noted Australia is in good standing “to respond with further packages, whether it would be packages which would stimulate consumption through changes in tax, for example, or whether it was via a combination of investment in infrastructure and other measures”.
But Swan stopped short of going into details of which taxes would be affected.
Meanwhile, during a reception at Kirribilli House yesterday, Rudd said businesses must restrain themselves from making unnecessary job cuts.
“We are determined to chart a course that will see Australia through this crisis. We will do so with a combination of steely economic management and compassion for those who need support.
“In these times, employers must do their utmost to protect their workers from dismissal, knowing that these workers will serve them well when times turn good again. Workers, too, must restrain any wage claims.”
Rudd is set to make a number of announcements regarding the economy in the coming days. While he says the impact of the downturn has been large, “but so will be our response”.
He has also indicated the need for employers to offer flexible working conditions.
“I know there are employers who have asked their workers to accept shorter working hours rather than lose their jobs. That encourages me, because at this time Australians need to look out for each other – as we have done so many times in the past when the going has got tough.”
Rudd’s first stimulus package, implemented last month, included $10.4 billion in payments to low and middle income earners. But a second package will almost certainly be larger.
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