NEWS
FEDERAL BUDGET 2021-22
A WIN FOR AGRICULTURE, WATER AND ENERGY
T
he Federal Government has handed down its 2021-22 Budget, with funding allocated for agriculture, and water and energy infrastructure. The 2021-22 Budget delivers substantial new investment to drive the competitiveness, growth and resilience of the Australian agriculture industry, with $850 million in funding to support the industry to reach its goal of $100 billion by 2030. The Federal Government’s focus remains on delivering targeted measures for Australia’s farmers, fishers and foresters in the Agriculture 2030 2021-22 Budget package.
Resources
The Federal Government said it will invest in a global strategy to highlight the quality, strength and reliability of Australia as a supplier of crucial resources and energy to the world while supporting companies to diversify and develop new markets. Supporting junior explorers is expected to help the industry make the next big discoveries. The resources sector employs more than 260,000 people, with many of these jobs in regional Australia. More than a million Australians rely on the sector indirectly. The 2021-22 Budget includes: • $100 million in fiscal balance terms to extend the Junior Minerals Exploration Incentive for four years from 1 July 2021, to encourage exploration and development of new deposits and to ensure a strong investment pipeline for development across regional Australia • New funding to implement the Government’s Strategic Basin Plans, including $15.7 million to support Gas Field Trials in the North Bowen and Galilee Basins, and $2.2 million for the Northern Land Council to help provide better services to Traditional Owners in the Beetaloo Basin
Northern Australia
The Government is investing $189.6 million over five years for the Next Five Year Plan for Northern Australia, with a focus on job creation, stronger digital connectivity, and support for businesses to scale up and diversify. Our North, Our Future: 2021-2026 represents the next phase of the 20-year framework set out in the 2015 White Paper on Developing Northern Australia, to build on the economic potential of the north and to create jobs and opportunities to help attract people to live and do business in the north. Measures include: • $9.3 million over five years to pilot the targeted Regions of Growth (ROG) program in four locations: Beetaloo Basin to Darwin; Broome to Kununurra to Darwin; Cairns to Gladstone; and Mount Isa to Townsville. The program will target investment to the strengths of each region and help identify future geographical areas of economic potential • $111.9 million over five years for a Northern Australia Development Program. The program will support northern
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Australian businesses to scale up and diversify by providing co-investment funding to businesses for activities including infrastructure, assets, feasibility studies and business planning Our North, Our Future: 2021-2026 builds on the Federal Government’s plans to drive job creation and industry growth, supporting national recovery efforts from the impacts of the COVID-19 pandemic.
Water
In the water portfolio, Minister for Resources, Water and Northern Australia, Keith Pitt, said Budget measures are centred on three key areas to set Australia up for the future: • Providing practical support to farmers who experienced drought to improve their on-farm water infrastructure in partnership with states • Reforming water markets to ensure water users could have confidence in their integrity and operation • Improving Murray-Darling Basin modelling to build the confidence of governments, water users and communities in planning for an uncertain future “We have extended the On-farm Emergency Water Infrastructure Rebate Scheme for 12 months until June 2022, to ensure drought-affected farmers can access the $50 million in rebate funding secured through the 2020-21 Budget,” Mr Pitt said. “We will form an expert panel to progress important reforms to Murray-Darling Basin water markets in ways that support water users while improving market efficiency, information and governance. “Reforming our water markets will need strong collaboration between governments, as well as with communities. “And we’re committed to developing a state-of-the-art modelling capability for the whole Basin to ensure farmers, communities and governments can make decisions confident in the data they rely on. “These measures are on top of the $270 million MurrayDarling Communities Investment Package announced last year to put communities and jobs at the heart of Basin Plan implementation. In 2021-22, $130 million of that is committed to support our communities. “We have also closed the Water Efficiency Program and ruled out water buybacks, diverting over $1.3 billion to focus on offfarm efficiency projects. “Off-farm water recovery means we can actually progress our river health targets and, unlike on-farm programs, we do not reduce water availability in the consumptive pool.” The 2021-22 Budget invests up to a further $258 million, including up to $160 million through the National Water Grid Connections pathway, from the $3.5 billion National Water Grid Fund towards the construction of new and augmented water infrastructure projects, building a more resilient and secure Australia. pump industry | Winter 2021 | Issue 36
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