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NSW drought: $1 million packages and tax breaks on table

DROUGHT-stricken rural communities will each receive a $1 million cash injection and farmers will get new tax breaks and low-interest loans as part of the Prime Minister’s latest response to the crisis.

Aussie mateship bales out drought-stricken farmers

DROUGHT-stricken rural communities will each receive a $1 million cash injection, and farmers will get new tax breaks and low-interest loans as part of Prime Minister Malcolm Turnbull’s latest response to the worsening crisis.

The government will today announce its latest emergency relief package — $250 million in new spending — which comes a fortnight after the most cash-strapped farmers were promised lump-sum cash payments of $12,000 per household.

Retired Army Major-­General Stephen Day, who was part of the Defence senior leadership group for 11 years, has been appointed the government’s new national drought co-ordinator, to marshall all three tiers of government, as well as businesses and charities, to make sure farmers’ best interests are being served.

Sheep feed at a property near Tamworth. Picture: Sam Ruttyn
Sheep feed at a property near Tamworth. Picture: Sam Ruttyn

Sixty drought-affected councils across NSW and western Queensland will be handed $1 million each to spend on anything from trucking in drinking water to building new community facilities.

Councils will be given the freedom to choose projects they consider to have the biggest benefit.

Rural residents in towns such as Forbes, Narromine and Trangie, whose household water tanks have run dry, have been collecting water from public standpipes for weeks to drink and bathe.

Mark Walters is one of many farmers in the Tamworth affected by drought conditions. Picture: Sam Ruttyn
Mark Walters is one of many farmers in the Tamworth affected by drought conditions. Picture: Sam Ruttyn
Peter Bailey inspects conditions on his farm near Tamworth. Picture: Sam Ruttyn
Peter Bailey inspects conditions on his farm near Tamworth. Picture: Sam Ruttyn

Prime Minister Malcolm Turnbull said: “I say to all farmers in these hard, dry times, more than ever we have your back.

“There is no place for set and forget — we will continue to evolve our drought response to ensure it meets the needs of farmers.”

HUMAN FACES OF THE DROUGHT

BUSINESS DRIES UP AS RIPPLE EFFECT OF DROUGHT CUTS IN

WATER WARS: FARMERS ACCUSE GOVERNMENT OF ‘HOARDING’ WATER

Today’s announcement takes the federal government’s drought-relief spending to $826 million, with another $1 billion in funds becoming available for farmers who can’t afford to borrow from the bank and want to access low-interest concessional loans instead.

A drone image of sheep feeding near Tamworth. Picture: Sam Ruttyn
A drone image of sheep feeding near Tamworth. Picture: Sam Ruttyn

The government will double the amount farmers can borrow in low-interest loans from $1 million to $2 million, which can be spent on purchasing fodder and water, and double the total amount available for loans in any one year from $250 million to $500 million.

There are also tax breaks for farmers who want to buy sheds and silos to stockpile livestock feed, which farmers are increasingly reliant on as pastures dry up.

New fodder storage will be immediately tax deductible from today, rather than depreciating over three years, which comes over and above the existing $20,000 instant asset write-off for small businesses.

VINNIES APPEAL HITS $300,000

VINNIES has raised more than $300,000 in the first two weeks of a joint drought appeal with The Sunday Telegraph and money’s already flowing to drought-affected farmers.

More than 1200 generous readers have dug deep to help farmers survive one of the worst droughts on record, of which $100,000 has already been delivered to those in the most trouble.

The relief has come in the nick of time for desperate farmers, according to Parkes-based Vinnies member Michael Lynch who has seen hardened men break down right across the state.

Donations to the appeal can be made by calling 13 18 12, at ­www.vinnies.org.au, or at any Vinnies shop.

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Original URL: https://www.dailytelegraph.com.au/news/nsw/nsw-drought-1-million-packages-and-tax-breaks-on-table/news-story/bb0c2a49a3050e31ef6b5e8f640bb340