The “man-on-the-street” has reacted positively to the Federal Government’s economic stimulus package, judging by a straw poll conducted in the Eurobodalla yesterday.
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Workers, business owners and students approached by the Bay Post/Moruya Examiner were largely happy with Prime Minister Kevin Rudd’s $42 billion package, revealed yesterday.
The mini-budget is aimed at building the nation and jobs as the global financial market continues to dwindle.
It includes one-off cash bonuses worth up to $950 to be paid to middle and low-income earners and families, children going back to school, farmers in hardship and people undertaking training.
The package also gives $200,000 to every school for maintenance, spends $890 million on regional roads and black spots, will build 20,000 new homes, boost rebates for solar hot water and gives tax breaks to small business.
Broulee’s Zo Griffin, who heads to Sydney in two weeks for university, said the bonus announcements would mean a big helping hand.
“I think Kevin Rudd is great,” Ms Griffin said. “I won’t be working much. I’ll only get one or two shifts a week up there.”
Long Beach resident Angie Ingram said she wasn’t sure if she would be eligible for any of the bonuses, but would use any she did receive to pay off a debt to her mother.
Workers earning up to $80,000 a year will receive $950, those earning between $80,000 and $90,000 will get $650 and those earning between $90,000 and $100,000 will get a $300 bonus.
“It depends if it (the workers’ bonus) is based on single or family income,” Ms Ingram said.
Tracey Downes, of Batemans Bay, said she would spend her bonus on a local holiday.
“I think it’s good that the hard-working people that missed out on the last lot of packages get that bit of money as well,” she said.
Batemans Bay Chamber of Commerce president Geoff Hatton said the package would be beneficial to local families and businesses.
Small businesses will receive an extra $600 tax deduction if they buy and install a $2000 computer before the end of June. Those that turn over less than $2 million a year can also claim an extra 30 per cent tax deduction for assets costing $1000 or more that they buy between December 13, 2008, and June 30, 2009, and install by June 30, 2010.
“Most of our businesses are classified as small businesses,” Mr Hatton said.
“Anything that will help out small businesses reduce costs and increase their profits is good, especially as we get into our traditional quiet period.”
Batemans Bay Trophies operator Chris Sullivan said any tax break was a good break for business, especially when the economy was slowing.
Mr Sullivan said he didn’t know if the computer clause would help him personally, but he would definitely look into it.
Another business operator was a bit sceptical of the handout, saying it was fine for the Government to provide the incentive but people would need to have the initial $2000 to purchase the computer.
“It’s fine to give tax breaks, but you need the $2000 first. Things are pretty tough at the moment,” Darren Knight, from Bay Office Supplies, said.
He added that he had talked to other business operators and they did see a spike in sales when the initial stimulus package was delivered before Christmas.
“But what else are we missing out on?” he said. “Where are they redirecting it from?”
Families receiving the Family Tax Benefit Part B, eligible on February 3, along with those receiving the Family Tax Benefit Part A, will get $950.
Workers in the shire are also looking forward to receiving the bonus with one employee expressing her thanks.
“Who would think that was stupid?” Jen Carrick said. “There’s no election in sight. But I do think it’s going to be hard financially.”
Fellow colleague Melissa Oosting said it was almost like the Government was giving something back to workers to allow them to continue their normal lives.
But it was “about time” for the announcement according to Mia Dickson, who said she would be looking to save the money distributed by the Federal Government.
The money will be paid to people eligible for it between March and April.
Also adding to the good news yesterday was the Reserve Bank’s decision to cut official interest rates by one per cent to 3.25 per cent.
If passed on in full by the banks, the drop will mean a person with a typical 30-year, $300,000 home loan would save about $170 in monthly repayments.
See the Editorial online or page 12 of the Bay Post/Moruya Examiner
