Infrastructure programs axed but billions for regional health care, connectivity

Labor’s federal budget will see billions funnelled into the regions. See how the money will be spent – and where it won’t.

More than $5 billion will be funnelled into regional infrastructure projects in Australia, despite the federal government confirming this week it would axe programs that have funded playgrounds, park and libraries in the bush.

Infrastructure and Regional Development Minister Catherine King confirmed on Monday the federal government would scrap the $250 million round six of the Building Better Regions fund.

Tuesday’s budget reveals the Regional Accelerator Program will also be scaled back to make room for Treasurer Jim Chalmers to deliver on the federal government’s other election commitments.

The Building Better Regions fund will be replaced by the Growing Regions program for regional councils and not-for-profit organisations and the Precincts and Partnerships program for larger-scale projects in regional and rural areas.

Minister King said the two new regional funding programs would funnel $1 billion to regional Australia over the next three years.

“The Albanese government is committed to investing in partnership with regional communities. We want our investments to be of value to people and to taxpayers, and to improve the liveability of the regions,” Minister King said.

The non-competitive Community Development Grants program will also be axed.

Infrastructure and Regional Development Minister Catherine King confirmed on Monday the Building Better Regions Fund would be axed. PICTURE: NCA NEWSWIRE / GARY RAMAGE

However Tuesday night’s budget revealed funding has been set aside for uncontracted Community Development Grants announced by the former Coalition government that can be contracted within six months.

There were concerns funding for a number of major public infrastructure projects would be slashed, including a $1.5 billion project to build marine infrastructure at Middle Arm near Darwin – announced by the Nationals in April – but this will go ahead.

Three planned logistics hubs in the Northern Territory at a cost of $440 million will also proceed, as will a $7.7 million project to develop common-user infrastructure at the Port of Bundaberg in Queensland and $100 million upgrade to the Port of Newcastle to make it hydrogen-ready.

NET ZERO

Regional Australia is in the box seat to benefit from the nation’s transition to a net zero future, with billions set aside in the Labor government’s first federal budget to ensure those living outside of capital cities capitalise on renewable energy opportunities.

The federal government will establish a $1.9 billion Powering the Regions Fund to provide dedicated support to transition regional industries to net zero.

Recognising that many of the nation’s biggest emitters call regional and rural Australia home, the budget reveals a Net Zero Economy Taskforce will be established to bring regional communities, state and territory governments, industry and unions together to advise the government on how to ensure regional Australia can benefit from the transition to renewable energy.

Federal Treasurer Jim Chalmers arrives at Parliament House on October 25, 2022 to deliver the Albanese government's first budget. PICTURE: MARTIN OLLMAN/GETTY IMAGES

LABOUR SHORTAGE

To address the nation’s skills shortage, the budget includes $871.7 million over five years to provide 480,000 fee-free TAFE and vocational education places in industries and regions with recognised skills shortages.

While there is no mention of the labour shortages affecting the farming sector, the government will spend $67.5 million over four years to expand and improve the Pacific Australia Mobility Scheme, which is heavily relied upon by farmers to fill their work force gaps.

The money will underwrite employers’ investment in upfront travel costs for seasonal workers by covering costs that cannot be recouped by workers, increased workplace compliance activities and allowing primary visa holders to bring their partners and children to Australia.

As announced prior to the budget, the PALM scheme will also be expanded to cater to the aged care sector.

Pensioners are also being lured back into the workforce by a temporary measure that will increase the amount they can earn in a year from $7800 to $11,800 before their welfare payment is reduced.

HEALTH CARE

Access to health care in the regions has been beset with difficulty, in part due to a critical shortage of labour.

To alleviate some of these challenges, the budget includes $143.3 million to provide better access to healthcare in rural and regional Australia by investing in primary care services, training, workforce incentives and trials for innovative models of care.

This includes $74.1 million for financial incentive payments for doctors with additional skills who are working in rural and remote regions.

The elderly living in care in regional Australia will benefit from $23.2 million over four years to improve aged care infrastructure and services, while $61.8 million will be spent over six years to pay for local health investment projects – including GP after hours services, new hospices and palliative care centres – in rural and regional areas to reduce pressure on hospital emergency departments.

CONNECTIVITY

Despite the National Party fearing drastic cuts, funding for mobile and broadband connectivity in the regions will be bolstered by $757.7 million over the next five years.

Highway coverage will be improved with $400 million allocated to rolling out mobile base stations, while $200 million has been set aside to fund another two rounds of the Regional Connectivity Program.

Farmers and agricultural businesses are also set to benefit, with $30 million in the budget to help fund the purchase and installation costs of on-farm connectivity equipment.