 More help on the way for housing markets?
Another stimulus package could be on the way with Kevin Rudd indicating the need for further measures in tackling the economic crisis. The government is looking to invest more in the economy as the threat of deflation looms.
Tax reforms are to be considered by the Prime Minister in an attempt to revive struggling business and consumer confidence.
Meeting last night at Kirribilli House with the cabinet committee that masterminded last year's $10.4 billion economic rescue plan, Mr Rudd made the first in a series of speeches on the global economic crisis and what the Government's response should be.
"I am doing this because I intend to be absolutely straight with Australians about the impact of the crisis, and what we intend to do about it," he said.
"The impact will be big. But so will our response."
The Government has put the cost so far of its measures aimed at jump-starting Australia's stalled economy at $36 billion.
In October $10.4 billion was paid out in a boost to welfare payments, training and the housing sector.
The last package had a noticeable impact with an increase in first home buyers jumping on the property ladder. However, while the number of approvals for the purchase of established houses rose 1.1 per cent, financing to build new houses fell a seasonally adjusted 0.3 per cent. Mr Rudd will be hoping that phase-two will impact on other markets and save the economy from a recession.
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