October 23 federal budget: Regions told to brace for cuts

Treasurer Jim Chalmers’ first federal budget is expected to “rip the guts out of regional Australia”. This is what you need to know.

Regional Australia is bracing for billions of dollars worth of cuts to critical infrastructure projects, from sporting facilities to bridges and dams, as Treasurer Jim Charmers looks for savings in tomorrow’s budget.

Infrastructure and Regional Development Minister Catherine King today confirmed the federal government would scrap round six of the $1.38 billion Building Better Regions fund.

Minister King said the contentious fund – which had been labelled a “slush fund” for Nationals Party seats – would 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.

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

MInfrastructure, Transport and Regional Development Minister Catherine King has confirmed the Building Better Regions Fund will be axed. Picture: Gary Ramage

Minister King said the two new programs would commit $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,” she said.

The Albanese government has flagged cuts to other programs that have funded millions of dollars of investment in the bush, including the $500 million “Regionalisation” program and billions earmarked for dams.

There are also concerns for regional telecommunications funding.

Many of these programs were secured by former Nationals leader Barnaby Joyce in exchange for the party’s support for the Coalition’s net zero carbon emissions policy.

Nationals leader David Littleproud said he was also worried about funding being redirected from rural education and health to support the Albanese government’s plan to aggressively cut spending and fund election commitments, such as extending paid parental leave by eight weeks and a $4.5 billion package to cut the cost of childcare.

The party also feared for a $7.1 billion commitment under the new Energy Security and Regional Development plan designed to transform key regions into major export hubs.

Nationals leader David Littleproud said the party’s worst fears were being realised after months of speculation regional and rural Australia would suffer under Labor’s first budget.

“Labor’s plan of ‘significant spending cuts’ will rip the guts out of regional and rural Australia,” Mr Littleproud said. “We are deeply concerned Treasurer Jim Chalmers will take an axe to our regions.”

Minister Chalmers’ first federal budget will be delivered tomorrow night with savings of up to $21 billion from cuts to government departments, $2 billion worth of grants including many earmarked for regional and rural Australia and $3.6 billion of travel, legal expenses and consultants.

Finance Minister Katy Gallagher has flagged that 80 per cent of the budget would be dedicated to funding welfare payments, defence spending and servicing almost $1 trillion of debt.

Nationals Senator Bridget McKenzie Picture says programs flagged for cuts had built critical infrastructure in rural and regional Australia Picture: Gary Ramage

Shadow Infrastructure Minister and Nationals Senator Bridget McKenzie said the Labor Party’s approach to fiscal savings was “completely offensive” to the nine million Australians who lived outside capital cities.

“What the Labor Party has been doing over the last month is claiming the spending programs that have built so much of our economic and social infrastructure in regional Australia as waste so that they can somehow be absolved of making cuts on budget night to these programs,” Senator McKenzie said.

“These programs build critical infrastructure in our communities such as medical training facilities, our roads and bridges, the types of facilities that people in capital cities take for granted. For me it really shows the disrespect and disregard that the Labor Party has for regional Australia.”