Federal Budget 22: How Cairns will benefit in infrastructure funding
Residents in Queensland’s Far North have almost been completely ignored when it comes to targeted funding for local projects in Tuesday’s Budget. See what it means for you here.
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A BID to diversify the Far North’s economy could be dashed after Treasurer Josh Frydenberg allocated next-to-no targeted funding for the region in the federal budget.
While the region is set to benefit from billions of dollars in investments to the Northern Australia Infrastructure Facility and Great Barrier Reef initiatives, there is little in the way of promises for Cairns.
A push for water security came amid plans to prepare for the diversification of the Cairns economy as the Covid-19 pandemic proved a reliance on tourism was fraught with danger.
The Northern Australia Infrastructure Facility received a $2bn boost, increasing the overall investment to $7bn. The government made the official announcement of the increase in January 2022.
The region will benefit from a $2bn fund developed to target investments in regional communities across the country in an effort to “unlock growth prospects for industries and businesses”.
The Regional Accelerator Program will direct $142m twoard educational infrastructure projects for regional Australia; $25m for the Defence Capability Improvement Grant program; and $9m for the Sovereign Industrial Capability Priorities Grants program.
Mr Frydenberg said the Regional Accelerator Program would aid further growth of regional communities.
“This will empower our strong and dynamic regions to capitalise on existing and emerging opportunities,” he said.
“It will also unlock growth prospects for industries and businesses to ensure thriving regions are internationally competitive.”
The Treasurer also announced $500m for regional manufacturers.
“This will enhance Australia’s international competitiveness by assisting regional manufacturers to translate good ideas into commercial success,” he said.
The federal government’s budget does outline a significant investment into the Great Barrier Reef – much of which was announced earlier this year – which will have a significant impact on the Cairns region.
There has also been continued investment in the HMAS Cairns via a $56.2m injection to the Facilities to Support SEA 2273 Fleet Information Environment Modernisation Project.
The project will provide an upgraded information system to support maritime and naval operations for the HMAS Cairns in addition to the HMAS Kuttabul New South Wales, HMAS Cerberus Victoria, HMAS Stirling Western Australia, and HMAS Coonawarra Northern Territory.
The government has also allocated $15.6m for a project to upgrade engineering services including firefighting systems, potable water, sewerage and stormwater, and deliver minor building refurbishment works at HMAS Cairns.
Construction is forecast to start in mid-2022, and is scheduled for completion in early 2024.
In January, the government also announced a five-year, up to $70m-dollar contract for NORSTA Martime, a 100 per cent Australian owned and controlled joint venture between
Norship, Tropical Reef Shipyard, Nova Systems and Secora, as the new Regional
Maintenance Provider – North East.
This will tap into the talent of the more than 4000 people employed in the Cairns’ maritime precinct and create additional jobs for local workers.
What the Far North gets in the budget
>> $2bn increase to the Northern Australian Infrastructure Facility, bringing the total funding to $7bn
>> $68.5m for the Cooktown to Weipa Corridor Upgrade
>> $31.6m for the Cairns to Northern Territory Border Corrsidor Upgrade
>> $1bn for the Great Barrier Reef to help protect its health and resilience.
>> $6m for Aboriginal and Torres Strait Islander Escaping Violence Payment place-based trial in Cairns.
Amphibious capabilities
LAST year the Federal Government announced two Cairns-based businesses had recived a contract to produce seven new watercraft for the Australian Army between April and October this year.
The $4.1m contract, which was for Tropical Reef Shipyards and BME NQ, has started and is expected to be completed in January 2023.
Cash splashed on roads funding
HUNDREDS of millions of dollars will be injected into outback roads and rail links as part of the federal government’s plan to “strengthen our regions”.
More than $678m in additional funding will be used to seal a massive 1000km stretch of Outback Way – linking Laverton in WA to Winton in Queensland via Alice Springs.
Treasurer Josh Frydenberg said the “additional investment builds on the $330m the government has invested in the Outback Way since 2013, and will support over 2000 jobs across Northern Australia”.
“This budget also provides an additional $880m for Roads of Strategic Importance, $385.4m for the Northern Australia Roads Program, and $150m for the Inland Rail Interface Improvement Program,” Mr Frydenberg said.
“These programs will upgrade essential roads and community infrastructure in regional communities, helping to drive the growth of regional Australia.”
New funding for road upgrades in Central, North and Far North:
>> Tennant Creek to Townsville Corridor Upgrade: $114.4m
>> Cooktown to Weipa Corridor Upgrade: $68.5m
>> Cairns to NT Border Corridor Upgrade: $31.6m
>> Townsville to Roma Corridor Upgrade: $19.1m
>> Phillips Creek Bridge Replacement Project: $14.4m
Major projects in planning, under way or under construction:
>> Cairns Southern Access – Stage 3 – Edmonton to Gordonvale: $385m
Investing in the Great Barrier Reef
THE government has made two reef-related announced in recent months and a support package for tourism business that operate in the Great Barrier Reef Marine Park.
“In addition to the Morrison Government’s $1bn commitment over nine years to protect the Great Barrier Reef announced earlier this year, an additional $12.4m will provide further support for Queensland tourism operators with the waiving of Environmental Management Charges, and other permit-related fees and charges, for a third year running,” Environment Minister Susan Ley said.
“This takes the Commonwealth financial commitment to the Great Barrier Reef to more than $3bn since coming to government, demonstrating a clear commitment to the protection of the Reef itself, and the 64,000 Queenslanders who are part of the reef economy.”
The federal government’s investment of $1bn over nine years includes:
>> $579.9m over nine years from 2021-22 to improve the water quality of the Reef,
including working with land managers to reduce nutrient and pesticide run-off and
to remediate eroding gullies and stream banks;
>> $252.9m over nine years from 2021-22 for targeted activities that improve the
sustainable management and protection of reef ecosystems;
>> $95.6m over nine years from 2021-22 to enhance leadership and research and
development of resilience and adaptation strategies for the Reef;
>>$74.4m over nine years from 2021-22 to strengthen partnerships with Traditional
Owners to undertake on-ground projects and support data validation of high priority
fishing areas.
Covid-19 in rural and remote communities, RATS for workers
THE government has committed to securing additional Covid-19 treatment doses to protect vulnerable Australians most at risk of severe disease. The government’s direct investment now equates to more than one million treatment courses.
The government is also investing in transmission prevention and testing to contain outbreaks in high-risk settings.
“Already, the government has distributed over 161 million units of PPE and over 26.2 million RATs to aged care facilities,” budget papers state.
“To assist Australians with a disability to monitor for Covid-19 and manage transmission risks, the government is providing 5.5 million RATs to National Disability Insurance Scheme Supported independent Living residents and workers.”
Targeted support for health and vaccination services for rural and remote Indigenous communities, who are at risk of severe illness from Covid-19, is also being extended at a cost of $43.3m.
The government will also ensure the costs of taking a Covid-19 test to attend work are tax- deductible for individuals from July 2021, while fringe benefits tax will not be incurred by businesses who provide Covid-19 tests to employees for them to attend work.
Increasing Indigenous home ownership
The government will also re-profile existing funding provided to Indigenous Business Australia for regional housing construction loans as part of the Indigenous Home Ownership Program.
The program has more than $100 million available to support new loans which boost housing construction, create jobs and increase rates of Indigenous home ownership in regional Australia.
The cash splash will come at a cost of $7.7 million over 5 years from 2021-22.
Originally published as Federal Budget 22: How Cairns will benefit in infrastructure funding
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