Prime Minister John Key is not going to copy his Australian counterpart and urge people to start spending windfalls to save the economy.

Australian Prime Minister Kevin Rudd has urged Australians to go on a taxpayer-subsidised Christmas spending spree as multibillion dollar bonuses in welfare payments begin to flow.

The $A8.7 ($NZ10.66) billion will be paid to 8 million pensioners and low-income families -- more than a third of Australia's 21 million population -- over 10 days starting today in a bid to stave off an Australian recession.

While many are expected to use the money to pay off household debt at a time when jobs are at risk, Mr Rudd has urged spending.

"Go out and spend the money," Mr Rudd told a public gathering in the southern city of Geelong on Sunday.

Tax cuts began flowing into New Zealanders' pockets in October and another round will take place next April, but Mr Key said it was up to people what they did with their money.

"It is an important stimulus for the economy. I have no doubt people will spend the bulk of it, but I am not telling them to go out on a national spending campaign," Mr Key said.

"Spend for New Zealand? I probably won't give that advice to my wife."

Mr Key said National believed in cutting taxes so people could decide what to do with their money and they could choose to cut debt.

"There has been considerable build-up in personal debt and some New Zealanders will want to pay off debt," Mr Key said.