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The Government will be issuing the $900 stimuls tax rebate to people who lodge their 2008-2009 tax return, even if those people are now dead.

So how do dead people stimulate the economy?

A spokesman for Treasurer Wayne Swan confirmed that if a person lodged a tax return and later died, they would qualify.

He said the money would be directed to a deceased estate and the Australian Taxation Office would distribute the cash by cheque and direct debit.

Asked what would happen to the cash if bank accounts had been closed after the death of a taxpayer, the spokesman conceded it might bounce back to the Government.

The disclosure that part of the $8 billion stimulus plan would be directed to deceased estates came as the Government faced further Opposition criticisms that its package was flawed.

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