The Impact of the Global Financial Crisis on the Australian Economy

2877 Words 12 Pages
Mid September 2008 saw a significant change for the Australian economy, with the collapse of the Lehman Brothers triggering the Global Financial Crisis. The Global Financial Crisis was characterised by a tightening in the availability of money from overseas markets and resulting in governments having to intervene to maintain market stability. The Australian economy and its leaders generated considerable discussion about the prospect of a global recession, while most expected the financial crisis would have a major impact on the Australian economy, a factor that was not considered was the immediacy of its effects. The December quarter of 2008, saw business stocks devalue by $3.4 billion, the largest fall on record. In addition, there was a …show more content…
The payments consisted of a Tax Bonus Payment, $900 Single Income Family Bonus, $950 Farmer’s Hardship Payment, $950 Back to School Bonus and a Training and Learning Bonus.

This added to the Government’s initiative to support growth and jobs at the present moment in time, by delivering investments needed to strengthen the economy. The net measures on the 2009-2010 Budget endeavoured to raise the level of Gross Domestic Product (GDP) by three-quarters of a per cent in 2009-10, providing an extra boost to demand when the economy needed it the most.

Supporting Australian small businesses

The 2009-2010 Budget saw the Government recognise the vital contribution made by small businesses to the economy. Small businesses contributes approximately four million private sector jobs in Australia and therefore to support small businesses from feeling the effects of the economic downturn, the Government introduced measures to assist business investment, managing cash flows and improving online capabilities.
Under the Plan the Government provided direct assistance to small business with the Small and General Business Tax Break. They will have access to an extra 50% tax deduction for suitable assets $1 000 or more purchased between 13th December 2008 and 31st December 2009 and installed ahead of the 31st December 2010.
Building the Education Revolution

As part

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