Australia Unveils A$10.4 Billion Rescue Plan

This afternoon, Australian Prime Minister Kevin Rudd unveiled an A$10.4 billion ($7.4 billion) stimulus plan aimed towards the public.

With $A4.8 billion going directly to the elderly, A$3.9 billion going to families, and A$1.5 billion going to first home buyers, Rudd hopes to offset collateral damage caused by the credit crisis. Delivered as a one-time tax rebate, the payments will be financed by the nation’s A$21.7 billion Federal surplus.

Indeed, with Business Confidence near 7-year lows, the plan, in concert with the RBA’s rate cutting campaign, seeks to ease tensions as the unemployment rate jumped 0.2 percentage points to 4.3% in September.

AUDUSD traded at .7086 at 22:12 EST