Revealed: Drought hit farmers to receive 40 per cent rate rebate

Victorian producers in 12 shires will gain rate rebates of 40 per cent, as the Allan government extends its drought support to $144 million. See the details.

It may have rained, but there’s at least another six to eight weeks before drought-ravaged pastures recover to ease farmers feed costs.

Rate relief is on the way for farmers across 12 of Victoria’s worst drought-affected shires, with the Allan government about to announce a rebate of about 40 per cent.

Premier Jacinta Allan is set to announce a $75m lift in support on Thursday, bringing the government’s total drought support to $144m since its first announcement in May.

The rate rebate is aimed at boosting farmers’ cash flow across the shires of Glenelg, Southern Grampians, Warrnambool, Moyne, Corangamite, Colac Otway, Surf Coast, West Wimmera, Ararat, Pyrenees and Golden Plains.

City of Greater Geelong has also been included in the package, alongside the original 12 council areas first designated as drought affected in September 2024.

The Victorian Farmers Federation estimated producers across the 12 shires were facing a combined rates bill of $87m in 2025-26, which will now be cut by about 41 per cent thanks to the government’s rebate.

Agriculture Minister Ros Spence said: “Cashflow relief was one of the major items raised with the (government’s drought) taskforce, which is why we’re helping farmers to create more room in their budgets to deal with the cost pressures they are facing in drought.

“We are investing in both short-term solutions and legacy infrastructure to improve resilience and water security for farmers and their communities.”

Victorian Farmers Federation president Brett Hosking. Picture: Rob Leeson

VFF president Brett Hosking said he understood the $35.8m in primary producer cash support would be handed to councils, which would oversee how it was delivered to farmers.

“The VFF would be shocked if it went anywhere other than into rate relief,” Mr Hosking said.

The package also includes:

$2m for the Country Women’s Association to roll out of food and grocery support of up to $1000 per household;

$6.3m to cover the cost of farmer exemptions on government fees and charges, such as livestock transaction fees;

$15m towards extending the East Grampians Pipeline, which will secure water to 750

additional rural properties, 10 local towns, 34 fire hydrants, and 66 tanks for firefighting in the Ararat Rural City, Northern Grampians, and Pyrenees Shire.

$5.5m for standpipes, emergency and private bores;

$3.5m towards a SouthWest water strategy;

$1m for Catchment Management Authority employment programs; and

$5.9m to continue the Look over the Farm Gate program, continue technical decision-making support, mentalhealth services and farm debt mediation.

The latest tranche of funding was formulated over the course of three drought taskforce meetings in Camperdown, Shepparton and Ballarat.

Rural Councils Victoria deputy chairwoman Kate Makin - who is also mayor of Corangamite Shire, one of the state’s worst drought-hit municipalities — worked with the VFF on the rates exemption proposal.

“It’s a good start at 40 per cent,” Cr Makin said. “That’s not to say it’s the final position, we’ve worked productively with the government and look forward to further work with the drought taskforce when it next meets.”

Regional Cities Victoria chairman Shane Sali welcomed the announcment and said there should be further consideration for expansion to the south and western farming districts of Horsham Rural City Council also.

“Our agriculture sector is the backbone of our economy,” Cr Sali said.

“Right now, they need all the support they can get – even with recent rains there is a long road to recovery ahead for Victoria’s primary producers and for the regional and rural economies that rely on them.”

The original drought funding round was announced in September 2024.

Mr Hosking said the package showed the effectiveness of farmer and community advocacy.

Ms Allan said: “We’ve been listening to farmers and communities who are doing it tough – this support delivers real help, right now.

“This isn’t just about dollars – it’s about backing the people who feed our state and the regional communities that keep our state strong.

“Thank you to the members of the taskforce – Victorians from different communities, backgrounds and political parties who came together to deliver real relief for farming communities.”

Originally published as Revealed: Drought hit farmers to receive 40 per cent rate rebate