Kevin Rudd says the time is right to begin spending a significant part of Australia's surplus given the global economic downturn.

In the face of a struggling United States, Australia and other nations have been forced to guarantee bank loans and deposits in a bid to shore up support and stability.

Mr Rudd says given the current state of the world economy, Australia must now begin to spend some of it's more than $20 billion annual surplus to help stimulate the economy.

One of the ways more than likely to come into effect would be an increase in the aged pension.

Mr Rudd says the time is clearly right to begin assisting the economy.

"I believe that the purpose of having a surplus is to make sure you've got a buffer for the tough times - and the tough times have come," he said.

"That means making sure that you're taking necessary measures to contribute to positive economic growth in the future and help families on the way through.

Mr Rudd said the Government would make announcements about spending measures in the near future.

"On the detail of those measures the Government will make further statements in due course," he said.

Other areas of spending include a fast-tracked Infrastructure fund, which is to see at least $5 billion spent on broadband internet access.