Farm incomes have been hard hit by the drought (net value of Australian farm production)

Support for rural and regional Australia

Droughts and bushfires have human and financial costs for those directly affected and their communities. With drought widespread and in the aftermath of devastating bushfires, the Government is strengthening its commitment to the growth and prosperity of Australia's regions.

Drought assistance

The Government expects to provide $750 million over four years from 2002-03 to assist Australians through the most extensive drought in Australian meteorological records. This will help farmers, small business and regional communities with direct financial assistance, personal counselling, employment services, as well as tax relief.

The Government is providing assistance to protect Australia's agricultural and environmental resource base. To achieve this, it encourages farmers and rural communities to adopt self–reliant and sustainable approaches to manage the impact of this and future droughts.

Providing natural disaster relief and mitigation

The Government expects to provide funding of around $100 million in 2003-04 to help communities recover from natural disasters, including the devastating bushfires.

The Government is also working with State and Territory governments to establish a national approach to natural disaster mitigation to reduce the loss of life and property when natural disasters strike. The Government will provide $69 million over five years, conditional on matching State and Territory funding and the implementation of more effective land use and building controls.

Regional partnerships

From 1 July 2003, the Government will incorporate a range of regional programmes into a new integrated programme. Regional Partnerships, with additional funding of $62 million over three years from 2004-05 to 2006-07, will support initiatives in four key areas: strengthening growth and opportunities; improving access to services; supporting planning; and assisting structural adjustment for communities.