SYDNEY, Oct 14, 2008 (AFP) - Australian Prime Minister Kevin Rudd on Tuesday unveiled a 10.4 billion dollar (7.25 billion US) economic stimulus package to counter a slowdown caused by the global financial crisis.

'The global financial crisis has entered into a new dangerous and damaging phase, one that goes to the real economy -- growth and jobs,' Rudd told reporters in Canberra.

'That's why the government has decided to act decisively and early on the question of this economic security strategy for the future,' he said, stressing the need to underpin Australian economic growth.

The surprise package primarily targets pensioners, low and middle-income families, carers and first-home buyers, and is aimed at boosting consumer spending.

It consists of five main measures, including setting aside 4.8 billion dollars for an immediate down payment on long-term pension reforms and 3.9 billion dollars for support payments for low and middle income families.

A further 1.5 billion dollars will go towards helping first-time buyers purchase a new home.

In addition, 187 million dollars will go to creating 56,000 new training places, and the government will also speed up major infrastructure projects.

The move came as governments around world act to bolster economic confidence by introducing fiscal packages and loosening monetary policy to avert a global recession.

Dramatic action is needed because global growth targets have been significantly downgraded, Rudd said, amid growing fears that Australia's decade-long growth spurt may be in danger.

Meanwhile there is evidence of softening prices for Australian commodities on international markets as well as falls in business and consumer confidence in Australia and overseas, he said.

'So you can either sit back and watch this data unfold or you can act on it, the prime minister said.

'The global financial crisis has entered into a new dangerous and damaging phase, one that goes to the real economy -- growth and jobs,' he said.

'That's why the government has decided to act decisively and early on the question of this economic security strategy for the future.'

Rudd said the stimulus package aimed to 'deal with the challenges of the global financial crisis, to support continued growth of the Australian economy and to provide practical help for households.'

He described the worst crisis since the Great Depression, which has seen stock markets plunge dramatically and the prices of commodities fall sharply, as 'the economic equivalent of a rolling national security crisis.'

Rudd had hinted on Monday he was ready to use part of the government budget surplus to help bolster the economy as the financial crisis reached a peak.

But he said Tuesday that the stimulus package would be entirely funded from the budget, and that his Treasury had advised that the budget would remain in surplus after the measures are introduced.

Also among the measures is a 1,400 dollar lump-sum payment for single pensioners, while carers will get a 1,000 dollar additional payment for each person they care for as the effects of rising inflation and the economic slowdown begin to bite.

First-home buyers will receive grants of up to 21,000 dollar in a move aimed at stimulating housing activity.

The International Monetary Fund noted last week that while many developed economies were headed for recession, Australia's growth was predicted to be about 2.2 percent next year.

But the government is at pains to point out that Australia is not immune from the crisis, and economists have said that a significant slowing of China's economy could have a serious impact on Australian growth.