Federal budget 2021: Regional Australia and infrastructure highlights

Industry groups were hoping for more incentives to boost investment in the regions, particularly post-COVID — but their pleas have gone unheeded.

Regional development groups were hoping for more cash to help boost investment in regional Australia.

There were no surprises in tonight’s budget for regional Australia, with most of the big-ticket items already announced.

The Government has previously said regional Australia will share in about a third of its $110 billion, 10-year infrastructure plan, with funds promised for agricultural supply chains and inland rail routes in particular.

A tranche of ongoing funding for roads will keep local councils happy, while more cash has gone toward popular community grant programs.

REGIONAL DEVELOPMENT AND COMMUNICATIONS

Groups such as the National Farmers’ Federation and Regional Australia Institute had hoped for more funding to progress their “regionalisation” agenda, but there’s little in the budget that will get people moving to the regions.

While the NFF is seeking the creation of 20 “development precincts” across regional Australia — moving away from the concept of decentralisation — the Government has instead committed $600,000 to a scoping study into “establishing public service hubs” in the regions.

It will also support an independent study into the barriers preventing businesses from moving to the regions, but has not provided funding for this.

Deputy Prime Minister and Infrastructure Minister Michael McCormack had already announced another $250 million for the Building Better Regions Fund, which is specifically dedicated to regional and rural communities, and another $84.8 million to the Regional Connectivity Fund aimed at improving digital services in the bush.

Rural GPs also received a boost, with $65 million to increase bulk billing in rural areas.

NATURAL DISASTERS AND EMERGENCY MANAGEMENT

The Government had already announced more than $60 million to develop a natural disaster recovery agency, as per the recommendations in the bushfire royal commission.

There’s also $615 million over six years to provide grants for people to better prepare for and reduce the risk of natural disaster, and $280 million for bushfire-affected areas out of the national bushfire recovery fund.

Almost $210 million will be spent establishing an Australian Climate Service to better prepare for extreme weather events caused by climate change, while funding will also go toward developing a national cell broadcast messaging system that can be used to notify more people of significant events.

WATER INFRASTRUCTURE

New projects under the National Water Grid — previously known as the National Water Infrastructure Development Fund — were announced prior to tonight, with $98 million in cash.

They include water storage in Eurobodalla, the Werribee Irrigation District Modernisation, and an extra $7.5 million for Queensland’s Rookwood Weir.

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