Rate cuts must be passed on, says Swan

TREASURER Wayne Swan says he wants to see any further rate cuts by the Reserve Bank of Australia passed on as soon as possible.

TREASURER Wayne Swan says he wants to see any further rate cuts by the Reserve Bank of Australia passed on as soon as possible.

The RBA will decide on Tuesday whether to change the official cash rate from its current level of 3.25 per cent amid signs of a slowing national economy.

"Most certainly we would like to see any official rate cuts passed on as soon as possible,'' Mr Swan said.

"We do acknowledge there's a complex set of factors out there and that funding costs have been bouncing around.''

The Australian Tax Office will start rolling out the tax bonus payments of up $900 to from today.

"These payments are all about supporting jobs, particularly in the retail sector, and particularly until the direct investment in schools, homes, and housing kicks in," Mr Swan told reporters in Canberra.

The Reserve Bank holds its monthly board meeting tomorrow.

Economists are spilt as to whether the central bank will leave the cash rate unchanged for a second month in a row of cut the rate by up to 50 basis points.

Major banks have said they might not be able to pass on a reduction in full because of their own high funding costs.

"We do acknowledge there are a complex set of factors out there and funding costs have been bouncing around, but we would certainly like to see official rate cuts passed on as soon as possible," Mr Swan said.

New data released on Monday showed that job advertising has slumped by a further 8.5 per cent in March to be 44.6 per cent down on a year earlier.

"Because of the change in the global economy, the sharper contraction, that will have an impact on employment here and tends to be reflected in the figures that are out today," Mr Swan said.

"That is why we have put in place our economic stimulus programs to cushion the impact of this sharp global contraction."

Mr Swan is due to hand down the federal budget on May 12.

Opposition treasury spokesman Joe Hockey said on Sunday that the coalition would block budget bills if they judge a third round of stimulus measures as wasteful.

"Joe Hockey's position is just irresponsible and reckless," Mr Swan said.

"His sit-and-wait-and-see approach will condemn more people to unemployment and leave unemployment in this country much higher if he were in a responsible position, which thankfully he is not."