As Kevin Rudd urged pensioners and families to "go out and spend" the Christmas bonus being paid into their bank accounts, it has emerged the recession-busting package will cost taxpayers $28 million in advertising and administration costs.
From today, low and middle income families eligible for the family tax benefit will receive a one-off payment of $1000 a child, single age pensioners will gain $1400 and pensioner couples will get $2100.
Those receiving the carers allowance will be given $1000 for each person being cared for.
Retailers are hoping to grab their share of the $10.4 billion being poured into the economy amid fears that cautious consumers could mean a sluggish Christmas trading period.
Myer department sores launched a campaign directly targeting the Government's largesse by reworking part of the Twelve Days of Christmas jingle to the slogan "my true Rudd gave to me".
A Liberal senator, Guy Barnett, has raised questions about the cost of delivering the package, with $17.2 million being spent on administration costs and $11.55 million for public education campaigns.
"How many public servants does it take to press a button?" Senator Barnett asked.
"How is it possible that it would cost so many millions of dollars to make these payments, which are being made via established administrative processes and electronic transfer?
"The $17.2 million cost could instead allow another 17,200 families to benefit from this money, or 12,285 single pensioners."
Senator Barnett also questioned why the Government needed an advertising campaign when it had promised to curb ad spending.
A spokeswoman for the Families Minister, Jenny Macklin, said the $17.2 million was for "costs incurred by Centrelink to deliver the payments" and $5.12 million would be spent on radio and print advertisements, brochures and routine correspondence to make sure people understand the "eligibility, timing and the context of the payments".
In line with the Government's new advertising rules, the Auditor-General has approved the spending.
"For the 6 million recipients, it is important to know this payment is not a mistake or overpayment but an extra lump sum payment," the spokeswoman said.
The Minister for Human Services, Joe Ludwig, said some payments might not arrive until December 19 and urged people concerned about not receiving money to wait until then before contacting Centrelink.
He said people did not need to apply for the payments.
Speaking in Geelong yesterday, Mr Rudd urged families and pensioners to spend the money to strengthen the economy.
"These payments start arriving tomorrow, just 17 days before Christmas, and I urge families and pensioners who have been doing it tough to spend their payments in a responsible way to make their family Christmas all the more special," he said.
Who gets what - and when
- Payments worth $1.8 billion start flowing to families, pensioners and carers from today.
- More than 410,000 families who receive Family Tax Benefit A will receive $1000 for each eligible child. 810,000 children in all.
- $1 billion will go to more than 725,000 Victorian age pensioners, carers and people with a disability.
- Single pensioners will get $1400 and pensioner couples $2100. Those who receive the carers allowance will also get $1000 for each eligible person cared for.
- Most payments will be made in the next fortnight and will arrive in bank accounts automatically.
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