03 February 2009

Rudd releases Australia's second stimulus package

The Australian Prime Minister Kevin Rudd has announced to his country today that his Government would be providing a second stimulus package to feed the Australian economy, reports The Age.

The $42 billion package will go hand-in-hand with a major cut in interest rates so that Australian residents will have more spending power during the economic downturn.

The Australian Chamber of Commerce and Industry (ACCI) has said the package is aimed toward job creation and business investment, and has a more long-term approach than the first fiscal package provided before Christmas 2008.

ACCI director of industry policy and economics Greg Evans told AAP the package would work well with the Reserve Bank of Australia interest rate cut, and would keep Australia's head above water during the crunch of the global crisis.

"Together with the interest rate cut, it has been a big day for monetary and fiscal policy - it's a case of all hands on deck," Australian Industry Group chief executive Heather Ridout said.

"The package targets consumer spending, which is absolutely critical to our near-term economic prospects, and boosts capital expenditure - looming as one of the real casualties of the downturn."

The Australian economy has become increasingly dependent on skilled workers emigrating to Australia, and there has been much debate as to whether the Minister for Immigration and Citizenship should cut back the record numbers of people who move to Australia under the General Skilled Migration programme.  However, the Australian immigration department have stated they would have to wait until economic figures are released for the creation of the 2009-10 Budget before any amendments to the migration quota would be announced.

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The Australian Visa Bureau is an independent consulting company specialising in helping people with emigrating to Australia.