1. Budget Highlights
The Government recognises the vital role that Australia's regions play in the economic development of the nation. Agriculture and resources dominate our exports and underpin our future prosperity. To support and stimulate the many businesses, farms and factories in rural and regional Australia, the Government is investing in infrastructure, health, local jobs, broadband, climate change action, biosecurity and quarantine, agricultural productivity and education.
Regional Australia is facing significant global challenges such as the world economic downturn, climate change and food security.
The 2009 Budget demonstrates the Government's commitment to take whatever action is necessary to cushion Australians from the worst of the global recession as well as making productivity‑boosting investments to ensure that we emerge from the global recession strong and well‑ equipped for the future.
The Budget reflects the Government's determination to fund practical initiatives that directly respond to the challenges faced by rural and regional Australia such as ageing, inadequate and insufficient infrastructure, communications, housing, health, education and employment.
The Australian Government is continuing to support and work in partnership with the immense network of farmers, miners, regional businesses, and tourism operators to ensure that working Australian families can benefit from the stimulus these policies will provide.
Australia's rural and regional communities and economies have built the foundations of modern Australia. Primary industries and resources have played a key role in generating a large share of Australia's wealth and are an integral part of the story of our nation, our history and our culture. These vital economic sectors will continue to play an important role in generating Australia's future economic prosperity.
Nation Building Plan for the Future
The Government's Nation Building Plan for the Future provides an additional $8.5 billion for nationally significant transport infrastructure investment that will provide the building blocks for Australia's long term economic, environmental and social prosperity. Regional areas will benefit from improved freight supply chains and export infrastructure, better connections between major towns and cities, and improved telecommunications.
A particular highlight of the Plan is the Government's investment in Australia's key freight route, Network 1 (N1), which stretches from Melbourne to Cairns. Work will soon start on key sections of the Pacific, Bruce and Hume highways as well as the key feeder roads: the Ipswich Motorway and the new Hunter Expressway.
Nation Building Program
The Australian Government's record investment of more than $26 billion over 6 years in the Nation Building Program provides a significant injection into our national road and rail network. Projects will be funded across the interstate transport network as well as to freight corridors connecting regional Australia with major cities and ports.
Nation Building and Jobs Plan
In February 2009, the Government announced a $42 billion Nation Building and Jobs Plan to invest in infrastructure and support jobs. The Plan is designed to support and stimulate employment in the short term and to improve Australia's economic prosperity in the long term. Rural and regional communities will see substantial investment in their roads, railways, schools and social and community facilities.
Community Infrastructure Program
Funding of $800 million during 2008‑09 and 2009‑10 has been provided through the Community Infrastructure Program to build and renew critical local infrastructure such as community centres, town halls, parks and playgrounds, pools and sports facilities. This funding, delivered through local government will stimulate growth and economic activity across Australia and improve community wellbeing.
Jobs Fund
The $650 million Jobs Fund is an Australian Government initiative over four years to support and create jobs and skill development through projects that build community and social infrastructure. Priority will be given to projects in regions experiencing higher levels of unemployment, and social disadvantage.
The Jobs Fund is a discretionary grants program that forms part of the Australian Government's Jobs and Training Compact and has been established to support families and communities most affected by the global recession.
Broadband
In April 2009, the Government established a new company to build and operate a National Broadband Network. The company will invest up to $43 billion over eight years to build the National Broadband Network, and will initially be public owned. Private investment will be encouraged from the initial build stage.
The Government's objective is to:
- connect 90 per cent of all Australian homes, schools and workplaces with optical fibre, providing broadband services with speeds of up to 100 megabits per second — 100 times faster than those currently used by many households and businesses
- connect all other premises in Australia with next generation wireless and satellite technologies that will deliver broadband speeds of 12 megabits per second.
The National Broadband Network will include $250 million for the Regional Backbone Blackspots Program. In addition, the $80 million allocated for the Rural and Regional National Broadband Network initiative will assist regional, rural and remote communities in realising the benefits of broadband.
The National Broadband Network is expected to support up to 25,000 jobs every year, on average, over the eight‑year life of the project.
Under the Government's new National Broadband Network, every house, school and business in Australia will get access to affordable fast broadband.
Climate change
The Government has a comprehensive strategy for dealing with climate change. The strategy is built on three pillars: reducing Australia's carbon pollution; adapting to climate change; and helping to shape a global solution. The Carbon Pollution Reduction Scheme (CPRS) will be the primary mechanism through which Australia will seek to cap and reduce carbon emissions. As a market‑based solution, the CPRS is the lowest cost way to reduce carbon pollution while supporting the interests of business and households.
The Government will support the decision making on potential entry of land‑based sectors into the CPRS by dedicating $16.1 million over four years to the development of the National Carbon Accounting Toolbox.
Under the $2.75 billion Climate Change Action Fund, the Government is committed to providing structural adjustment assistance for workers, communities and regions where a clear, identifiable and significant impact arises, or is highly likely to arise, as a direct result of the CPRS. The fund will also provide funding to assist coal mines, especially those with high fugitive emissions, with associated benefits for the communities that rely on them.
Biosecurity and quarantine
The Government recognises the importance of a rigorous system to minimise the risk of pest and disease incursions. It is committed to ensuring that Australians, and the rest of the world, can have confidence in the integrity of our quarantine and biosecurity systems.
In February 2008, the Government commissioned a comprehensive, independent review of Australia's quarantine and biosecurity. The review, chaired by Roger Beale, delivered its report in September 2008. The Government's preliminary response, released in December 2008, agreed in principle with all 84 recommendations. Responding to the recommendations will depend on a number of considerations, including the outcome of negotiations with the states and territories, budget considerations, development of biosecurity legislation and ongoing discussions with stakeholders during 2009 and into 2010.
In 2009‑10, before finalising the Government's response to the Beale Review recommendations, the Government will provide renewed support of $156 million to ensure that the resources needed to deliver effective quarantine measures will continue to be deployed at our airports, seaports and mail centres, and enhancing post‑border biosecurity.
National Review of Drought Policy
The National Review of Drought Policy — a major election commitment — is well advanced. The Government is considering the three reports that comprise the review — reports on climate, economic and social impacts — to develop a drought policy that better prepares our rural and regional communities for the future.
Exceptional Circumstances assistance, including Exceptional Circumstance Relief Payments, the Exceptional Circumstance Interest Rate Subsidy and Interim Income Support, will continue in 2009‑10. In addition, existing drought support initiatives for farmers and drought‑affected communities have been extended for 2009‑10.
Live Animal Trade
The Government will form an enhanced partnership with the livestock export sector through the Live Trade Animal Welfare Partnership. This partnership will deliver a three year $3.2 million program to continue to improve the handling of live animals in importing countries and support the growth in this trade.
Australia's farming future
The Government delivered on a key election commitment in 2008‑09, when it introduced the $130 million Australia's Farming Future initiative. The four‑year program is assisting primary industry sectors to adapt and respond to climate change.
In particular, under the Climate Change Research Program, the Government announced $46.2 million in funding for research, development and demonstration activities to help primary producers manage and adapt to climate change. The $26.5 million FarmReady program is helping primary producers develop skills and strategies to deal with the impacts of climate change.
Caring for our Country
Caring for our Country, the election commitment valued at more than $2 billion over five years, is progressing, working towards an environment that is healthier, better protected, well managed, resilient, and provides essential ecosystem services in a changing climate.
The Government is providing $189 million over five years from 2008‑09 towards landcare for activities that support sustainable primary production and natural resource management initiatives. To date, $38 million has been invested in 186 landcare projects across the country.
The Government released the first Caring for our Country business plan seeking proposals for around $450 million over the next four years. An overwhelming response was received from farming, landcare, environmental, Indigenous and community groups.
Education
The Government is investing $62.1 billion in schools from 2009‑2012 to ensure every Australian child receives a world class education. The biggest school modernisation program in the nation's history, the Building the Education Revolution intiative will commit $14.7 billion over three years to provide new facilities and refurbish Australian schools to bring them up to 21st century standards.
Resources and Energy
The Government is delivering on its commitment to accelerate the commercialisation and deployment of new renewable and low‑emission energy technologies.
The new $4.5 billion Clean Energy Initiative will support first‑of‑a‑kind industrial‑scale carbon capture and storage demonstration projects and help preserve the value of Australia's coal exports. The Clean Energy Initiative will include $2.0 billion over nine years to support the demonstration of industrial‑scale carbon capture and storage (CCS) flagship projects in Australia.
In renewables, the Clean Energy Initiative will provide $1.5 billion over six years to establish commercial‑scale solar power generation projects in Australia and $465 million over four years for a new innovation body, Renewables Australia, to promote the development, commercialisation and deployment of renewable energy.
The Government has announced the first round of successful projects under the Geothermal Drilling Program, launched the $435 million Renewable Energy Demonstration Program, released for consultation the draft guidelines for the $50 million Clean Energy Program and begun assessments under the Second Generation Biofuels Research and Development Program.
The Government is funding several clean‑energy projects located in regional areas. New programs announced in the 2008‑09 Budget targeted at the renewable energy sectors are likely to include projects located in rural and regional Australia such as geothermal drilling and large‑scale renewable and low‑emission coal technology demonstration projects.
The National Low Emissions Coal Initiative will accelerate the development and deployment of technologies that will reduce emissions from coal use. It is supported by the $500 million National Low Emissions Coal Fund between 2008‑09 and 2014‑15, designed to generate a further $1 billion in investment by other stakeholders, for research, development and demonstration of low‑emissions coal technologies. Coal‑fired power stations supply over 80 per cent of Australia's electricity and are significant employers in rural and regional Australia. The Government's initiative will enable coal to continue to make a sustainable contribution to reducing Australia's greenhouse gas emissions by 60 per cent of 2000 levels by 2050, while preserving the local and national economic benefits this sector delivers for Australia.
In addition, on 16 April 2009 the Prime Minister launched the Global Carbon Capture and Storage Institute. In a world first, the Government has announced details of the world's first commercial release of offshore areas designated specifically for the assessment of their greenhouse gas storage potential.
To assist in the development of a comprehensive energy strategy to meet Australia's long‑term energy needs, the Government has also released assessments of energy security, liquid fuels vulnerability and strategic directions for the forthcoming Energy White Paper.
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