Federal Government's economic rescue package announced

The Australian federal government has just announced a new $10.4 billion economic rescue package to aid the most vulnerable sectors of the population - and those most likely to shift the economy back in a positive direction. Perhaps most significantly offering support to first home buyers in order to stimulate confidence and facilitate new investment in the housing market (often the key catalyst for riding out a recession), the plans have received high praise in financial analyst circles. Only time will tell if the measures can stem the crisis spreading through the world's economy, but the move seems to underline the Prime Minister's intention to be a leader of action in tough times.

Battling the credit crisis: The PM speaks

Speaking in Canberra, the Prime Minister said, "The global financial crisis has entered into a new dangerous and damaging phase, one that goes to the real economy -- growth and jobs". Wishing to build on the Australian economy's upturn in recent years, Rudd added, "The government has decided to act decisively and early on the question of this economic security strategy for the future".

First home owner's grant stimulates the market

Among the measures announced is a $1.5 billion first home owner's grant, which offers $14,000 for all first home buyers and $21,000 for new home buyers of brand new housing. The move is mooted as a temporary measure, with Treasurer Wayne Swan denying that it opens up a market of "easy credit". Instead, Swan said, "It's not there forever [but] will give the housing market an immediate boost".

Given the housing industry's typically pivotal role during times of recession, it's surprising that the Government's step has been met with any criticism at all. So far Australia has not seen anywhere near the level of economic turbulence that Europe and the United States have endured, but naturally financial experts are anticipating a rougher ride in the coming months, with Treasurer Swan stating that a "rocky road" still lay ahead.

Despite calling for political unity during the current credit crisis, opposition Leader Malcolm Turnbull still managed a few divisive words, calling for the government to not withhold the credit forecasts that were clearly grim enough to instigate yesterday's economic aid package. Turnbull told ABC local radio, "We've asked [the Government] to give us the forecasts - the economic picture if you like - upon which they've based their decision and they've declined to do so. I think they should make that public because this is a matter of most intense public interest."

Other measures: pensioners, carers and low & middle-income families

Aimed at boosting consumer spending, the economic rescue package, which is equivalent to one percent of gross domestic product (GDP), will generally be welcomed by Australian businesses and the public, not least pensioners, low and middle-income families and carers, all of whom receive cash boosts in their budget via the new plan. The Government has set $4.8 billion aside for pension reforms and $3.9 billion for support payments aiding low and middle-income families. With $187m being pledged towards new training placements, and the government promising to keep on course with major Australian infrastructure projects, there is a clear focus on keeping the country's economy ticking along as hardship hits.