The federal government has announced a $10.4 billion package to help Australia counter the global economic crisis.
Pensioners, low and middle income families, and first home buyers will be among the major beneficiaries.
Prime Minister Kevin Rudd and Treasurer Wayne Swan unveiled the package in Canberra today.
Mr Rudd said the Economic Security Strategy would strengthen the Australia economy "in the face of the worst global financial crisis since the Great Depression".
The strategy includes five key measures, Mr Rudd said.
- $4.8 billion for an immediate down payment on long term pension reform;
- $3.9 billion in support payments for low and middle income families;
- $1.5 billion investment to help first home buyers buy a home;
- $187 million to create 56,000 new training places in 2008-09;
- Accelerate the implementation of the government's three nation building funds
Australia's four million pensioners, carers, and seniors will benefit from December 8.
Single pensioners will receive a lump sum payment of $1,400 while pensioner couples will receive $2,100.
People receiving the carers allowance will also receive $1,000 for each eligible person in their care.
Mr Rudd said it was time for fast, decisive action.
"The global financial crisis has entered into a new, dangerous, and damaging phase," he told reporters in Canberra.
"That's why the government has decided to act decisively and early on the question of this economic security strategy for the future.
"[It's] decisive action, responsible action, early action, all in Australia's interests."
The government said about 3.9 million Australian children would receive a $1,000 one-off benefit from December 8.
Families who receive Family Tax Benefit (A), families with children who receive the Youth Allowance, Abstudy or a benefit from the Veteran Children's Education scheme will be eligible.
First home buyers will be eligible for grants of up to $21,000 designed to stimulate housing activity.
The scheme will be time limited. All contracts entered into by June 30 next year will be eligible for the new assistance.
The payment under the first home buyers scheme will be doubled from $7,000 to $14,000 and first home buyers who buy a newly-constructed home will receive an extra $14,000 taking their total grant to $21,000.
The government will invest about $1.5 billion in the housing market over 2008/09 and 2009/10 through this initiative.
Mr Rudd said in spite of the spend, the federal budget would stay in the black.
"We're confident that we'll still be able to deliver a comfortable surplus going forward," he said.
The strategy was equivalent to one per cent of GDP, but Mr Rudd would not reveal what the updated projections were for Australia's growth and employment as the crisis unfolds internationally.
Australia could not afford to wait to take action to protect the economy, he said.
"If you are to learn anything from economic history it is this - at a time when economies need stimulus support, don't leave it too late.
The package would apply to all categories of pensioners and carers and was equivalent to about $35 a week for single pensioners, and $26 a week for each member of a married couple.
Mr Swan described the present times as unique.
"It's really important to understand that the world changed, changed dramatically, in the last couple of weeks," he said.