Mackay 2022-23 budget: Federal government’s big investment in Central Queensland

The Mackay, Isaac and Whitsunday region is set to benefit from millions in projects in the federal budget. Read the breakdown here.

MULTIMILLION-DOLLAR injections into major infrastructure, gas and water projects have been revealed for the Mackay Isaac Whitsunday regions, as part of the 2022-23 federal budget.

The Federal Government revealed it will give $15.6m to the Queensland Government to support the delivery of a Gas Wells Trials initiative in the North Bowen and Galilee basins.

The initiative aims to improve gas recovery and lower production costs through a better understand of the regions’ geotechnical properties and by trialling innovative gas drilling and well completion techniques.

This is in addition to a major investment in the North Queensland Water Infrastructure Authority, which is based in Bowen.

Treasurer Josh Frydenberg delivered his 2022 Budget speech in the House of Representatives in Parliament House in Canberra. Picture: NCA NewsWire / Gary Ramage

The government will provide $11.6m over five years from 2022-23 to continue the authority and expand its remit to support the development and delivery of water infrastructure in North Queensland.

The Government will invest $1.7 billion in large-scale infrastructure to help North and Central

Queensland realise its potential, including $483 million towards the future construction of Urannah Dam.

It will also invest $80 million towards the future construction of the Bowen Pipeline, subject to completion of the detailed business case, confirmation of total delivery costs and co-funding, and demonstration of value for money and public benefit.

The region will also benefit from the $7.1 billion Government’s Energy Security and Regional Development Plan.

The funding, which will be released over 11 years, will strengthen infrastructure and supply chains in the Northern Territory, North and Central Queensland, the Pilbara and the Hunter.

Working holiday-makers return in droves

THE Federal Government will make an additional 11,000 working holiday-maker visas available for prospective backpackers in an attempt at filling the shortfall the Covid-19 pandemic created in the jobs market.

Working holiday-makers, who regularly find employment on Central Queensland farms, have been missed since international travel essentially ground to a halt, and many farmers have struggled to meet demand amid the pandemic.

Immigration Minister Alex Hawke said the government recognised the importance of the visitor economy on the country’s prosperity.

“To support Australia’s economic future and the sustained growth of the tourism sector, the Morrison government has announced a one-off cap increase to the number of places available to working holiday-makers from countries with which Australia has a working holiday-maker (subclass 462) visa arrangement,” Mr Hawke said.

Farmers who need fruit pickers could have their pick soon. Picture: ANDY ROGERS

“As a result, around 11,000 additional WHM visas will be available for prospective backpackers. This measure is estimated to increase the underlying cash balance by $45m over the next three years.

“To further encourage the arrival of WHMs to Australia, between 19 January 2022 and 19 April 2022, working holiday-maker (sub classes 417 and 462) visa holders who arrive in Australia can apply for a refund of the visa application charge.

“This complements visa refunds for student (subclass 500) visa holders who arrive between 19 January 2022 and 19 March 2022.”

Cash splashed on roads

HUNDREDS of millions of dollars will be injected into outback roads and rail links as part of the federal government’s plans “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.

Federal 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,” he 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 $68.5 million

>>Cairns to Northern Territory Border Corridor Upgrade $31.6m

>>Townsville to Roma Corridor Upgrade $19.1m

>> Phillips Creek Bridge Replacement Project $14.4m

Major projects in planning, underway or under construction:

>> Cairns Southern Access – Stage 3 – Edmonton to Gordonvale: $385m

Covid in rural and remote communities, RATS for workers

THE government has also committed to securing additional Covid-19 treatment doses to protect vulnerable Australians at most risk of severe disease. The government’s direct investment will now come to more than a 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 (NDIS) 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 $43.3 million.

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.

Plan to grow regional industries

A $2 billion fund has been 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 see $142 million in Educational Infrastructure for regional Australia, a $25.0 million for the Defence Capability Improvement Grant program and $9 million for the Sovereign Industrial Capability Priorities Grants program.

“The Government has identified 12 programs where it will target investments through a $2.0 billion Regional Accelerator Program to further grow Australia’s regional communities,” the Treasurer said.

“This will empower our strong and dynamic regions to capitalise on existing and emerging opportunities.

“It will also unlock growth prospects for industries and businesses to ensure thriving regions are internationally competitive.”

Mr Frydenberg said the Government is providing $500.0 million for regional manufacturers. “This will enhance Australia’s international competitiveness by assisting regional manufacturers to translate good ideas into commercial success,” he said.

Meanwhile additional funding has been secured for a range of regional community initiatives including the Critical Minerals Accelerator Initiative ($200.0 million), Regionalisation

Fund ($500.0 million), Modern Manufacturing Initiative ($500.0 million), Recycling Modernisation Fund ($30.3 million), Australian Apprenticeships Initiatives ($144.1 million), National Centre for Digital Agriculture, Innovation and Adoption Hubs ($30.0 million) and the Regional Trailblazer Universities ($118.9 million).

What else North Queensland gets in the budget?

>> $1.7bn for North and Central Queensland water infrastructure and supply projects – this is in addition to the $5.4bn budgeted for Hells Gates Dam.

>> $1.7bn for agricultural and industry development in the region to help farmers and businesses fully harness opportunity created by Hells Gates Dam.

>> $2bn increase in funding for the Northern Australia Infrastructure Facility – bringing the total funding to $7bn.

>> Cyclone and Related Flooding Reinsurance Pool implementation funding. This includes $15.4m over four years from 2021-22 for the Australian Competition and Consumer Commission to prepare and conduct a price-monitoring role in relation to the insurance industry, with a focus on evaluating the impact of the cyclone reinsurance pool and whether the savings from the reinsurance pool are being passed through to policyholders; and $3.2m over four years from 2021-22 for the Treasury to establish, oversee and evaluate the pool.

>> $400m for the Inland Freight Route, which was announced last week by Deputy Prime Minister Barnaby Joyce – this brings the federal government’s funding for the project to $800m.

>> $63.6m for the Australian Institute of Marine Science – this includes $37.1m over three years from 2021-22 to support AIMS to deliver marine services and ensure ongoing sustainability of the Great Barrier Reef; and $26.5m over four years from 2022-23 (including $22.8m in capital finding, and $1.5m per year ongoing) to remediate the AIMS Cape Cleveland wharf and ongoing maintenance.

>> $40m for the North Queensland Strata Title Resilience Pilot Program, with $28m released in 2022-23, and $12m released in 2023-24. This program is still being designed by the state and federal governments.

>> $5m for North Bowen Pipeline Feasibility Study split over 2021-22 and 2022-23. The studies will explore the feasibility of a new pipeline to link the north Bowen Basin to the east coast gas market and other centres of gas demand.

>> $2.9m North Queensland Strata Title Inspection Scheme in 2022-23. This is additional funding for the program that helps body corporates in North Queensland with information about existing resilience of their properties and strategies to improve it. The Queensland Government implements this scheme.

>> $15.6m to the Queensland Government to support the delivery of a Gas Well Trials initiative in the North Bowen and Galilee basins.

>> $7.1bn provided over 11 years from 2022-23 for the government’s Energy Security and Regional Development Plan. Investment focuses on supply chains in NT, North and Central Queensland, the Pilbara in WA and the Hunter in NSW.

>> $1bn for the Great Barrier Reef to help protect its health and resilience. This is in addition to the $3bn Reef 2050 plan.

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.

Cost of living in the North

THE federal government’s budget will bring relief to North Queensland families struggling to make ends meet via two tax offsets and a six-month reduction to the fuel excise.

A one-off $420 cost of living tax offset – which will come into affect from July 1 – will give more than 10 million people across the country a much-needed break. Eligible low- and middle-income earners will be up to $1500 better off in a single-income household, or $3000 better off in a dual-income household.

The government will also provide a one-off tax-exempt payment of $250 to six million eligible pensioners, welfare recipients, veterans and eligible concession cardholders in April 2022.

For North Queenslanders, the costs of goods and fuel prices have many feeling the pinch.

Northern Australia Infrastructure Facility

NAIF is expected to balloon out to $7bn this year with an additional $2bn added to the North’s slush fund.

Federal Treasury officials revealed the $2 billion funding boost for the NAIF would be available to new infrastructure projects, yet to be decided on by the federal government.

The additional $2bn was committed to in January, with Northern Australia Minister David Littleproud saying the additional funds would mean benefits for the North in generations to come.

“The demand for NAIF funding continues to grow and it is likely to fully commit its current funding in the next year,” he said.

Resources boom

THE critical mineral sector is set to expand with investment into downstream processing, positioning Australia at the heart of the global supply chain.

The North West Minerals Province, which could benefit from the investment, is being positioned as a key contributor to the market, with at least two vanadium mines going through the approvals process in the past 12 months.

Critical minerals, which are used to make things like mobile phones and fighter jets, have been pegged as the key to the north west’s future.

Resources Minister Keith Pitt said Australia was responding to the global demand for gas and critical minerals, with the country’s large reserves, technical expertise and track record as a reliable and responsible supplier in our favour.

“We have the potential to do so much more and we are taking action to ensure Australia’s

critical minerals sector goes from strength to strength,” Mr Pitt said.

>> ‘You feel a bit more positive’: Mackay battler a winner in cost-of-living budget

Originally published as Mackay 2022-23 budget: Federal government’s big investment in Central Queensland