The federal coalition will not support the Rudd government's $42 billion economic stimulus package, Opposition Leader Malcolm Turnbull has told parliament.
The government has introduced legislation to parliament on Wednesday and wants key parts of it passed by Thursday to ensure one-off cash handouts are made from next month.
The coalition and crossbench senators have indicated they want more time to consider the package, calling on the government to allow the upper house to sit next week instead of conducting estimates hearings.
"The opposition will vote against this package in the House (of Representatives) and the Senate," Mr Turnbull told parliament.
"We know that this is not going to be a popular decision, but it's the right decision."
The government was trying to rush through the package through parliament, Mr Turnbull said.
The opposition would not support a further round of cash handouts, he said, adding it was an unpopular thing to say.
"But it's the right thing to say and I think most Australians will recognise in their hearts that it is the right thing to say," he said.
It was "extraordinary" the government would embark on this course when there was no basis for concluding the ($10.4 billion) "cash splash" in December had been effective."
Mr Turnbull did not rule out supporting further stimulus packages, saying it depended on their composition and the economic circumstances.
A more appropriate level of stimulus was about 1.5-2 per cent of GDP.
"Or between 15 and $20 billion."
Earlier, the government said the need to pass the legislation this week was based on advice from Centrelink and the tax office, which will be responsible for making cash payments to families and singles from next month.
Under the package a back-to-school bonus of $950 for each eligible child will be paid from March 11.
A similar bonus will be paid to drought-stricken farmers from March 24 as will a training and learning bonus for students.
Taxpayers earning less than $100,000 will receive a tax bonus of up to $950 each from April.
Mr Turnbull said the stimulus package, which would mostly be spent over the next two years, represented about four per cent of gross domestic product, and followed the $10.4 billion "cash splash" last year.
"If you give people one-off windfall lump sums in uncertain times they are more likely to save it than to spend it," he said.
"Whether governments like to hear it or not the good old-fashioned conservative value of thrift and saving is going to come back into fashion and... it ought to come back into fashion."
Mr Turnbull said $42 billion was a larger stimulus than was appropriate.
The opposition supported bringing forward personal income tax cuts, scheduled for July 1 2009, to January 1 this year as an alternative to the cash handouts.
"It does not put $950 in everybody's pocket today, but that's that point - it increases permanent income and it therefore provides a greater incentive to work and to invest," Mr Turnbull said.
Earlier, Prime Minister Kevin Rudd said there were no guarantees the government's second stimulus package would stem the effects of the "economic bushfire" spreading throughout the world.
He said Australia was "in uncharted economic waters" and maintained the $42 billion package was necessary to help see Australia "through the crisis".
The prime minister also responded to opposition criticism of the package, announced on Tuesday.
"You need to go into deficit and you need to borrow," Mr Rudd told the Fairfax Radio Network.
"The Liberal Party surely is not suggesting that you could somehow go out there and not balance your budget by borrowing in order to offset the collapse in tax receipts, or are they suggesting that?
"Are they suggesting there should be no stimulus package and you don't borrow for that?"
Mr Rudd said the latest stimulus package would help support jobs, and build necessary infrastructure including new schools.
"What we are trying to deal with is an economic bushfire which has spread throughout the world," he said.
"There are no guarantees in this whatsoever because we are in uncharted economic waters."
The $42 billion package contains $12.7 billion in cash handouts of up to $950 to be given in March and April to low and middle-income earners, farmers and families.
The payments are intended to be spent immediately, but Mr Rudd said he won't be concerned if the money is used to pay off debt instead.
He also hinted new measures might be introduced to make it easier for people genuinely in need of unemployment benefits to obtain them.
"When it comes to how the government responds to the challenge of those who find themselves unemployed through no fault of their own, we are going to have to go through every one of these measures," he said.
"The deputy prime minister (Julia Gillard) is working through all elements of labour market programs about how you respond to people who find themselves unemployed.
"We'll have more to say on this before too much longer.
"My view is the government and the community have to be humane and compassionate and sensible about how we handle this challenge and therefore all these things have been gone through as we speak."
Source: 7 News, Australia
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