Assisting rural and regional Australia

Drought Assistance

The drought has affected almost two thirds of Australia’s productive agricultural land over the last two years and has had major social and economic impacts.

$73 million in this Budget takes this total to around $1.1 billion in direct assistance to farmers in drought affected regions over the period 2002-03 to 2005-06.

Agriculture Advancing Australia

Programmes including FarmBis, FarmHelp and the Rural Financial Counselling Service, aim to support primary producers to respond positively to change, to adopt and benefit from innovation and to meet the challenges of farming in Australia. The Government is ensuring the continuation of these and other programmes by providing $236 million over the next four years to the package.

Wine industry assistance

The Government will rebate 290,000 to every wine producer from 1 October 2004 to offset the wine equalisation tax (WET) on up to $1 million per annum of their domestic wholesale sales. Tax relief will be pro-rated in 2004-05. The changes will provide significant benefits to small wine producers in rural and regional Australia and effectively exempt 90 per cent of wine producers from the WET.

Sugar Industry Reform

The sugar industry will receive more than $444 million over five years from 2003-04 to help secure its long term future.

Regional Partnerships

The Government is strengthening its commitment to promoting self reliant regional communities by providing $78 million over four years to the Regional Partnerships programme. This funding will support initiatives for regional business development, and improved access to services. As GST revenue grows it can fund these tax reductions.