Prime Minister Kevin Rudd said it was to "strengthen the Australian economy in the face of the worst global financial crisis since the Great Depression''.

The government has also decided to double the first home buyers' grant to $14,000 for those who buy an established home and to triple it to $21,000 for those who buy a newly built home.

Mr Rudd said the one-off bonus payments to pensioners and families would be made on December 8 and the housing bonus would apply immediately and for the rest of the 2008-09 financial year.

Announcing the spending at a press conference in Canberra today, Mr Rudd declared the global financial crisis had entered into a "new damaging phase'' and the government was acting early and decisively to protect jobs and households.

The pension package is worth $4.8 billion and will be paid to pensioners, carers and seniors.

Those on the single pension will get a lump sum bonus of $1400 and pensioner couples will get $2100.

Carers will get $1000 for each eligible person they care for.

Mr Rudd said the government would still continue to work on long-term pension reform.

He said the bonus was the equivalent of a $35-a-week increase for single pensioners and $26 a week for pensioner couiples.

Payments will also be made to self-funded retirees who are eligible for a Commonwealth Senior Health Care Card as well as others who hold a Commonwealth Seniors Health Card or Veterans Gold Card holders eligible for Seniors Concession Allowance.

The families package is worth $3.9 billion and will deliver $1000 for each child eligible for the family tax benefit part A and for children dependant under youth allowance and abstudy.

Mr Rudd said 3.8 million children would receive the $1000 payment.

"The global financial crisis is the economic equivalent of a rolling national security crisis," Mr Rudd said.