Rudd Government’s stimulus plan finally passes Senate

The Rudd Government’s $42 billion stimulus plan is set to be approved by the Senate after the Government negotiated a deal with independent Senator Nick Xenophon. Xenophon, who is from South Australia, refused to support the package after the Government said it would not include extra funding to help fix the Murray Darling Basin.

But this morning the Government has relented, promising $900 million in extra funding, with $500 million to be brought forward.

It is not yet known when a new vote will be taken, although it is expected later today.

The Greens have also won amendments to the package, which will see cash handouts to low and middle-income earners and single-income families cut by $50.

Single-income families and those earning less than $80,000 will now receive $900, while people on incomes of between $80,000 and $90,000 will receive $600, and those earning between $90,000 and $100,000 will get a $250 bonus.

Prime Minister Kevin Rudd lashed the Opposition after the Senate rejected the package for the first time yesterday.

“No other nation’s parliament has refused a major stimulus package in the current environment of unprecedented global economic downturn. No other country’s parliament except this Parliament led by this Opposition.”

But Malcolm Turnbull accused the Government of trying to ram the package through Parliament.

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