But there is one proviso:
The Government will invest about $1.5 billion in the housing market over 2008/09 and 2009/10 through this initiative.
''This measure will provide an immediate stimulus for new housing and help restore business confidence across the sector particularly in the building manufacturing sector,'' said Ron Silberberg, managing director of lobby group, Housing Industry Association.
However, the building of houses needed to be cranked up by 45,000 a year to cover present demand, but this proposal is a step in the right direction, the HIA said in a release.
In its wider support package for families, the Government said about 3.9 million Australian children will receive a $1,000 one-off benefit, also commencing on 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.
Budget impact
The $10.4 billion spending plan will tap into a budget surplus that the Government had forecast would come in at $21.7 billion, prior to the worst of the market turmoil taking hold.
The Government plans to publish a full budget update in the Mid-Year Economic and Fiscal Outlook within a month.
The accelerated spending will serve as "a buffer" against the likely drag on the economy resulting from the global slowdown, Mr Rudd said.
The Government remains determined to take ''whatever action is necessary in the future'' to maintain stability of the Australian financial system and underpin positive economic growth, Mr Rudd said.
Asked about the effect the package would have on inflation, Mr Swan cited the RBA's view that '"inflation will begin to turn down following a peak in December."
"The risk of inflation is now abating,'' Mr Swan said.
''We trust the government took into account'' the impact the extra spending would have on inflation and on the RBA's ability to continue to cutting rates,'' said Opposition Leader Mr Turnbull.
RBC Capital Markets senior currency strategist Sue Trinh said the overall effect of the package won't stop the RBA from lowering rates.
''Australia is in a very enviable position right now," she said.
Training, nation-building
As indicated in recent days, the Government plans to accelerate its so-called nation building efforts to stoke domestic demand, taking up some of the slack as consumers and businesses cut back spending.
Ministers will bring forward their interim infrastructure report so that work can start in 2009 in the key areas of education and research, health and hospitals, and transport and communications, Mr Rudd said today.
The Government will be seeking pre-referral of the legislation for the nation building funds into a Senate committee this week.
As part of today's extra outlays, the Government will spend $187 million to create an extra 56,000 training places this financial year.
The ''productivity places program'' will be doubled from 57,000 to 113,000 places, taking the Government investment in training places since April to more than $400 million, Mr Rudd said.
Emissions trading
The federal government is sticking to its plan to start emissions trading in 2010, despite global financial turmoil.
''Our ambition remains 2010,'' Mr Rudd said. ''Climate change is not going to go away.''
''The long-term economic cost to the entire economy, and to the entire global economy, of not acting on climate change remains formidable.''
Business wanted consistency and predictability in the area of emissions trading, Mr Rudd said, adding that it was important to get the scheme's design and rules right, and to map it out early.
The federal opposition and some business figures have called for emissions trading to be delayed in the wake of the crisis.
The opposition says 2011 or 2012 would be a better time to introduce the scheme.
BusinessDay with AAP, Reuters
Mr DT's response to the above: It's game on!
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