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Treasurer Wayne Swan has indicated interest rates will go up as the federal government withdraws its fiscal stimulus measures.

While Labor is committed to maintaining its spending programs for now, aspects of the stimulus are due to end by December, including the small business investment allowance and a more generous first homeowners' grant.

Asked about the prospect of higher interest rates as the economy recovers, Mr Swan said it was inevitable the Reserve Bank of Australia would act as stimulus programs finished.

"As the stimulus is withdrawn, there will be adjustments on interest rates," he told reporters in Canberra on Wednesday, adding the stimulus was designed to be targeted and temporary. "As private sector demand recovers as we go through next year, the stimulus is withdrawn."

Interest rates have been at a 49-year low of 3 per cent since April. Asked if another cycle of global recession was approaching, Mr Swan sounded a little upbeat. "There's a discussion about all of that globally but while we can't be absolutely certain about the global outlook, there are some encouraging signs," he told Fairfax Radio Network.

But he added Opposition Leader Malcolm Turnbull's call to withdraw the stimulus now would lead to "far higher" unemployment and hit confidence. From December, the small business investment allowance, which allows firms to claim a 50 per cent rebate for items costing more than $1000, will end. The first homeowners' grant will be pared back by the end of 2009.

The grant was doubled to $14,000 for established homes and trebled to $21,000 for new properties as part of the government's first stimulus package, but returns to its original level of $7,000 for established homes and new homes from January 1, 2010.