Australia unveils AUD 4.7 bn plan to boost economy

The Australian government today unveiled a package worth AUD 4.7 billion to boost the economy and create more jobs in the country.

The "nation building package" is aimed at making investments in road, rail and education infrastructure, according to a statement posted on the official website of Austrlian Prime Minister Kevin Rudd.

Further, the plan would bring in vital tax changes to help the country's businesses to cope with the global economic slowdown.

Of the total amount, AUD 1.2 billion would be pumped into the Australian Rail Track Corporation and about AUD 711 million would be used for building better roads.

On the tax front, the government would implement a 10 per cent temporary investment allowance to encourage capital investment by Australian businesses, among various other steps.

The plan announced today is in addition to the governments AUD 10.4 billion Economic Security Strategy, the AUD 6.2 billion New Car Plan and the AUD 300 million local infrastructure funding boost, among others.

As part of the latest package, the administration would invest AUD 1.6 billion in a 10 per cent temporary investment allowance - provided as an additional tax deduction.

The move would encourage capital investment by Australian businesses and the allowance will be equal to 10 per cent of the cost of an eligible asset, the statement noted.

"The government will make further announcements about nation building projects, funded from the Building Australia Fund, and subject to the Infrastructure Australia priority list, early next year," the statement added.