What does the NT get out of Budget 2021/22

THE Territory doesn’t have many direct mentions in this Budget, but here’s what it does say. SEE WHAT THE TERRITORY IS GETTING HERE

• Your Federal Budget 5-minute guide

THERE’S little that hasn’t already been announced in the Federal Budget, but here’s what the NT is getting, straight from the budget docs:

Calculation of GST entitlements

The NT will receive $3,275.8 million in GST payments in 2021-22.

In 2018, the Australian Government reformed the system of HFE to provide a fairer and more sustainable way to distribute the GST among the states. From 2021-22, the system begins its transition to a more stable and predictable equalisation standard that will reduce volatility in states’ GST payments.

To support the states’ transition to the new system, the Australian Government has provided an additional $5.2 billion in transitional GST top-up payments over the three years to 2021-22 to ensure that no state has an effective GST relativity below 0.7 or 4.66024 for the Northern Territory. At the time of 2018 reforms, it was estimated that $1.8 billion in top-up payments would be required over those three years.

From 2022-23, the new HFE system will include a relativity floor of 0.7, permanently increasing to 0.75 in 2024-25. Further, the Australian Government has guaranteed, through legislation, that each state will receive at least the cumulative better of the old or the new HFE system for the six years from 2021-22 to 2026-27.

The CGC does not calculate GST sharing relativities beyond the budget year. The distribution of GST among the states and any resulting transitional payments for 2022-23 onwards are calculated based on a technical assumption that the CGC’s 2021-22 GST relativities under the old and updated distribution systems remain unchanged. The estimates do not reflect any attempt to project future GST relativities or GST entitlements. To arrive at the GST sharing relativities for a particular year, these relativities are adjusted to account for the point in time at which the transition to the updated distribution system is occurring.

Closing the Gap — National Partnership Agreements on Rheumatic Fever Strategy and Improving Trachoma Control — extension Payments ($m)

The Government will provide $31.1 million over four years from 2021-22 to extend Agreements on improving trachoma control services and rheumatic fever strategy with the Northern Territory, Queensland, Western Australia and South Australia for detection, monitoring and management of these diseases.

Funding for this measure has already been provided for by the Government.

COVID-19 Response Package — extension

The Government will provide $845.3 million over two years from 2020-21 to support the Government’s emergency response to COVID-19. Funding includes:

• $487.0 million over two years from 2020-21 to expand quarantine services in the Northern Territory. The cost of this measure will be partially recovered from people who quarantine at this facility

• $271.5 million in 2020-21 to extend activities under the National Partnership on the COVID-19 Response

• $86.8 million over two years from 2020-21 to expand activities of the National Incident Centre and to support the National Medical Stockpile.

This measure builds on the 2020-21 Budget measures titled COVID-19 Response Package — supporting our hospitals — continuation and COVID-19 Response Package — guaranteeing Medicare and access to medicines — extension and the 2020-21 MYEFO measure titled COVID-19 Response Package — quarantine arrangements in the Northern Territory and Tasmania for people returning from overseas.

Improving Energy Affordability and Reliability

The Government will provide up to $215.4 million over six years from 2020-21 to support investment in new dispatchable generation and support affordable and reliable power for consumers in the nation’s electricity markets. Funding includes:

• up to $30.0 million in 2021-22 to provide funding for the Katherine-Darwin Interconnected System big battery project and microgrid rollout in the Northern Territory

Rum Jungle Rehabilitation Project

The Government will provide funding over 11 years from 2021-22 to conduct full rehabilitation works at the former Rum Jungle mine site near Batchelor, Northern Territory.

The financial implications for this measure are not for publication (nfp) due to commercial sensitivities.

This measure builds on the 2020-21 Budget measure titled Rum Jungle Rehabilitation Project — additional funding.

Infrastructure Investment — Northern Territory

The Government will provide $323.9 million from 2021-22 for priority road and rail projects in the Northern Territory to support economic recovery and jobs, increasing the Government’s total commitment to transport infrastructure in the Northern Territory to $3.2 billion. Funding includes:

• $173.6 million for the Northern Territory Gas Industry Roads Upgrades

• $150.0 million for the Northern Territory National Network Highway Upgrades (Phase 2).

Partial funding for this measure has already been provided for by the Government.

This is in addition to funding provided to the Northern Territory through the measure titled Road Safety Program — extension and Local Roads and Community Infrastructure Program — extension.

This measure builds on the 2020-21 Budget measure titled JobMaker Plan — Infrastructure

Investment — Northern Territory.

Garden Point Mission — settlement of claims

The Government will provide funding for the Commonwealth’s settlement costs relating

to claims brought by former residents of the Garden Point Mission in the

Northern Territory during the period 1940 to 1969.

The expenditure for this measure are not for publication (nfp) due to legal sensitivities.

Cashless Debit Card — Jobs Fund and Income Management extension

The Government will provide funding to support the continuation of the Cashless Debit Card (CDC) on an ongoing basis. Funding provides for:

• a Jobs Fund to create employment opportunities in existing CDC sites, including drug and alcohol residential rehabilitation facilities in these regions

• information technology to support the continued rollout of CDC

• long-term data collection and an evaluation to measure the impact of CDC

• extension of place-based income management in all 13 current locations across Australia until 31 December 2023

• operating CDC and income management concurrently in the Northern Territory and Cape York region, to reflect amendments made in the Social Security (Administration) Amendment (Continuation of Cashless Welfare) Act 2020.

The funding for this measure is not for publication (nfp) due to ongoing negotiations with potential commercial providers.

This measure builds on the 2020-21 Budget measure titled Cashless Debit Card — ongoing

funding.

Indigenous health

In 2021-22, the Australian Government is estimated to provide $16.1 million to the states

for programs to improve the health of Indigenous Australians.

This includes $7.4 million this coming financial year for the NT Remote Aboriginal Envestment health component.

The Australian Government provides funding to supplement primary health care services in remote Northern Territory communities and position the Northern Territory for the long-term sustainability of its services to Indigenous Australians. The funding includes support for the provision of integrated oral and hearing health services to children in remote communities.

This funding agreement supports the Northern Territory to improve schooling for Indigenous children, make communities safer and healthier, and increase access to interpreter services and job opportunities for Indigenous Australians. Other components of the funding agreement are discussed in the Community Services, Education and Affordable Housing sections of this Part

Education

In 2021–22, the Australian Government will provide funding of $24.8 billion to support state education services, including $24.4 billion in Quality Schools funding and $409.1 million through National Partnership payments.

This includes $29.3 million in 2021-22 in the Northern Territory Remote Aboriginal Investment children and schooling component.

The Australian Government is providing funding to improve student attendance, educational attainment, Indigenous workforce development and teacher housing in remote and very remote schools.

Community services

In 2021-22, the Australian Government will provide funding of $1.5 billion to support

state community services, including $35.8 million in 2021-22 in the Northern Territory Remote Aboriginal Investment Community safety implementation plan.

The Australian Government is providing funding to the Northern Territory to make remote communities safer, improve child and family safety and address alcohol-related harm through this implementation plan.

The Australian Government provides National Partnership payments to the states, including $2.6 million in 2020-21 for COVID-19 self-isolation for remote communities.

The Australian Government will provide funding to reimburse states for some of the costs incurred in the provision of government funded self-isolation facilities for the duration of the Remote Travel Restrictions in the Northern Territory, Queensland, Western Australia and South Australia, through an appropriate agreement between the Commonwealth and the relevant jurisdictions

Affordable housing

In 2021–22, the Australian Government will provide funding of $3.3 billion to support state affordable housing services, including $1.6 billion through the National Housing and Homelessness Agreement (NHHA), $1.5 billion through HomeBuilder and $190.8 million through other National Partnership payments.

This includes $3.7 million in 2021-22 for the Northern Territory Remote Aboriginal Investment remote Australia strategies component.

The Remote Australia strategies component provides funding to improve public housing in remote communities by investing in housing works and removing asbestosfrom community buildings. This funding will also support a sustainable, professional and accredited Indigenous interpreter service.

This funding complements the funding provided under the agreement on remote housing.

In this agreement, the NT saw $137.2 million in 2020-21 and will see $185 million in 2021-22, and $110 million in 2022-23.

The Australian Government is supporting significant reform in the provision of housing for Indigenous Australians in remote communities, particularly in the Northern Territory. This will help address overcrowding, homelessness, poor housing conditions and severe housing shortages.

This funding supports the delivery of new houses, housing refurbishments and housing-related infrastructure. It also provides incentives to establish more sustainable housing systems in remote Indigenous communities.

Barkly Regional Deal

The NT will receive $19.7 million over three years for the Barkly Regional Deal.

The Australian Government is providing funding to deliver a range of economic, social and cultural initiatives in the Barkly region.

Darwin City Deal

The NT will receive $72.3 million over two years for the Darwin City Deal.

The Australian Government is providing funding to support projects under the Darwin City Deal, including an education and civic precinct in Darwin’s city centre.

COVID-19 World and National Heritage

The NT received $1.6 million in 2020-21 for COVID-19 World and National Heritage.

The Australian Government will provide funding to support the domestic tourism industry and regional communities by funding on-ground projects to improve infrastructure at iconic World and National Heritages sites, whilst also providing an economic boost through job creation and lasting benefits for our tourism industry, in all Australian states, and the Northern Territory.

Provision of Remote Services — continuation

The Government will provide $99.3 million over four years from 2021-22 (and $24.9 million per year ongoing) for Services Australia to deliver government payments and services in remote locations, particularly in the Northern Territory, Western Australia, Northern Queensland, South Australia and Tasmania.

The funding will enable Services Australia to continue to provide direct access to remote customers through a mix of agents, access points, remote service centres, visits by remote servicing teams, and technology-enabled services such as virtual servicing.

This measure extends the 2020-21 Budget measure titled Services Australia — provision of

remote services — continuation.

Keeping Australians safe

The Government remains committed to building Defence capability and supporting Australia’s sovereign defence industry, including through its defence capability investments valued at $270 billion over the next decade. Maintenance and development of Australia’s 400 owned and approximately 958 leased properties continues to deliver considerable economic, social and environmental support for regional communities,including the recent $747 million defence infrastructure package in the Northern Territory.

Remediation of Jabiru Township

The Director of National Parks (DNP) holds a revisionary interest under a lease for the town of Jabiru expiring in 2021. The make good and rehabilitation arrangements of Jabiru is being negotiated between the DNP, the Northern Territory Government, Energy Resources of Australia and other stakeholders. Remediation work includes renewal of essential services, removal of hazardous materials and chemicals, ensuring structures are compliant to Building Codes and ecological remediation. Expenditure forthe remediation work will be shared across all parties to the arrangements.

The Government agreed to provide $35.0 million toward the remediation of contaminants in Jabiru as part of the 2019-20 Budget measure Securing Tourism and Jobs

in Kakadu.

Northern Territory Stolen Generations Class Action

A class action against the Commonwealth has been lodged in the NSW Supreme Court seeking compensation for Stolen Generations survivors who were removed from their families in the Northern Territory prior to self-government, and family members living with them at the time who were affected by the removals. Costs associated with this litigation (if any) and any potential related future litigation are not quantifiable until the matter is determined by the Court or otherwise resolved.

Drought related and farm finance concessional loans — Agriculture

As at 30 June 2020, the fair value of farm business, drought and dairy farm related loans is estimated to total $586.6 million. This includes:

Drought Concessional Loans Scheme: This scheme provided loans to drought-affected farm businesses for debt restructuring, operating expenses and drought recovery and preparedness activities. The scheme commenced in June 2014 as a loans scheme available for two years and operated in Queensland, Victoria, New South Wales, South Australia, Western Australia, Tasmania and the Northern Territory.

The Government extended the application period until 31 October 2016 to cover the period until the new 10-year Farm Business Concessional Loans Scheme was able to commence on 1 November 2016. The Government also extended the Western Australian application period for the Drought Concessional Loans Scheme until 30 June 2017.

As at 1 February 2021, the interest rate was 1.22 per cent, reviewed on a six-monthly basis and revised in accordance with material changes in the five-year Commonwealth bond rate. Loans have a maximum term of five years, with an extenuating circumstances clause in some jurisdictions, which allows a maximum two-year extension to the loan at commercial rates.

Farm Business Concessional Loans Scheme: This scheme provided three types of concessional loans — drought assistance, dairy recovery and business improvement.

This scheme was designed to cover a farmer’s short-term needs when income was tight and to supplement, rather than replace, commercial finance. Loans under the schemewere first available in November 2016. Applications for loans under the scheme closed on 30 June 2018.

Drought assistance concessional loans were available in Queensland, New South Wales, Victoria, South Australia, Tasmania and the Northern Territory. Loans were available for debt restructuring, operating expenses, drought preparedness activities or drought-recovery activities or a combination of these purposes.

Business improvement concessional loans were available in Queensland, New South Wales, Victoria, South Australia, Tasmania and the Northern Territory.

Loans were available for eligible Farm Household Allowance (FHA) recipients who were recovering from financial hardship and had exhausted, or would exhaust their FHA 1,095-day income support entitlement by 30 June 2018. These loans were for debt restructuring only.

National Partnership payments for infrastructure

The NT will receive $11.8 million over five years for Black Spot Projects.

These projects improve the safety of road sites that have been identified as high-risk areas for serious crashes. Funding is aimed at improving sites that have a record of at least three accidents involving casualties over a five-year period and can demonstrate a benefit-to-cost ratio greater than two.

The NT will receive $10.4 million over five years in the Bridges Renewal Program.

The Australian Government is providing funding to upgrade bridges across the nation.

This program renews and replaces bridges serving local communities and facilitates higher productivity vehicle access.

The NT will received $0.4 million in 2020-21 for Developing Northern Australia — Improving cattle supply chains.

The Australian Government is providing funding to Queensland, Western Australia and the Northern Territory for road infrastructure projects that will improve the resilience and productivity of the northern cattle supply chains.

The NT will receive $41.7 million over three years for Developing Northern Australia — Northern Australia Roads.

The Australian Government is providing funding to Queensland, Western Australia and the Northern Territory for infrastructure projects that are essential to the movement of people and freight in order to support economic development in the region. Projects include links to roads connecting communities and regional towns to ports and airports.

The NT will receive $17.5 million over five years in the Heavy Vehicle Safety and Productivity Program.

The Australian Government is contributing to the safety and productivity of heavy vehicles by funding projects that improve the safety of the road environment, enhance the capacity of existing roads and improve connections to freight networks.

The NT will receive $0.3 million in 2021-22 in the Rail investment component.

The rail investment component of the Infrastructure Investment Program delivers the Australian Government’s rail investment. It funds projects across Australia, including the Victorian regional rail program.

The NT will receive $665 million over five years in the Road investment component.

The road investment component of the Infrastructure Investment Program delivers the majority of the Australian Government’s investment in road infrastructure. It targets nationally significant projects that will improve the efficiency and safety of Australia’s road network. Funding is provided for road construction projects and network maintenance, as well as transport development, innovation projects and grants to land transport research bodies

The NT will receive $378.8 million over five years in the Roads of Strategic Importance initiative.

The Australian Government is providing $4.9 billion in funding over 12 years to upgrade key routes to improve access for businesses and communities to essential services, markets and employment opportunities.

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