Australian Government, 2008‑09 Budget
Budget

Agriculture, Fisheries and Forestry

Drought assistance — Exceptional Circumstances assistance for primary producers

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Agriculture, Fisheries and Forestry 3.8 361.5 - - -
Department of Education, Employment and Workplace Relations 0.1 9.9 - - -
Centrelink - 3.6 - - -
Department of Health and Ageing - 2.1 - - -
Total 3.9 377.1 - - -

The Government will provide $381.0 million over two years to continue support for primary producers in regions that have been declared eligible for Exceptional Circumstances assistance.

Exceptional Circumstances assistance provides interest rate subsidies and income support to assist viable farm businesses and farm families who have been adversely affected by the prolonged drought. Eligible recipients are also provided with a health care concession card and access to Youth Allowance for their children.

Further information can be found in various press releases issued by the Minister for Agriculture, Fisheries and Forestry.

Drought assistance — Exceptional Circumstances assistance for primary producers and small business — definition of income

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Agriculture, Fisheries and Forestry - - * * *
Australian Taxation Office - - * * *

The Government will exclude certain salary sacrifice contributions to superannuation from the income test used to determine eligibility for Exceptional Circumstances Relief Payments and Exceptional Circumstances Interim Income Support. The expanded definition of income used to determine eligibility for a range of government support payments was announced in the 2008‑09 Budget under the measure titled Means-testing of government support — expanded definitions of income to include certain 'salary sacrificed' contributions to superannuation.

This measure may have an ongoing unquantifiable expense impact from 1 July 2009. As a result, there may be an ongoing unquantifiable impact to revenue arising from the fact the affected payments are taxed concessionally.

Drought assistance — Exceptional Circumstances assistance for small business

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Agriculture, Fisheries and Forestry 0.1 20.9 - - -
Department of Education, Employment and Workplace Relations .. 0.5 - - -
Centrelink - 0.1 - - -
Department of Health and Ageing - 0.1 - - -
Total 0.1 21.6 - - -

The Government will provide $21.8 million over two years to continue support for farm-dependent small businesses in regions that have been declared eligible for Exceptional Circumstances assistance.

The small business assistance provides interest rate subsidies and income support to assist viable farm-dependent businesses and families who have been adversely affected by the prolonged drought. Eligible recipients are also provided with a health care concession card and access to Youth Allowance for their children.

Further information can be found in various press releases issued by the Minister for Agriculture, Fisheries and Forestry.

Small block irrigators — exit grant package

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of the Environment, Water, Heritage and the Arts - 57.1 -57.1 - -
Centrelink - 4.0 - - -
Department of Agriculture, Fisheries and Forestry - 0.5 - - -
Total - 61.6 -57.1 - -

The Government will provide $61.6 million in 2008‑09 to assist small block irrigators in the Murray-Darling Basin affected by drought and climate change who wish to cease irrigation farming but stay on the farm. The program provides taxable exit grants of up to $150,000 to eligible irrigators with permanent water entitlements of at least 10megalitres, on properties of 15 hectares or less, who sell their water entitlements to the Commonwealth and cease irrigation farming. The program also provides two complementary taxable grants of up to $10,000 each for advice and training, and removal of permanent plantings and other production-related infrastructure.

The Government will bring forward $57.1 million of funding from 2009‑10 under the Sustainable Rural Water Use and Infrastructure program administered by the Department of the Environment, Water, Heritage and the Arts to provide funding for this measure. This measure includes funding of $4.0 million in 2008‑09 for Centrelink to deliver the program.

Implementation of the program will be linked to water reforms agreed between the Australian Government and the relevant state governments.

Further information can be found in the press release of 20 September 2008 issued by the Minister for Climate Change and Water.

Tackling Climate Change — Climate Change Research Program

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Agriculture, Fisheries and Forestry - - - - -

The Government will provide $46.2 million over four years to help prepare Australia's primary industries for climate change by supporting further research and development. The program will support projects in three key areas: reducing greenhouse pollution; better soil management; and adapting to a changing climate.

Funding of $15.0 million will be allocated from the Tackling Climate Change — Climate Change and Productivity Research Program and an additional $31.2 million will be provided from the Tackling Climate Change — Australia's Farming Future — Climate Change Adaptation Partnerships Program announced in the 2008‑09 Budget.

Further information can be found in the press release of 7 July 2008 issued by the Minister for Agriculture, Fisheries and Forestry.

Wheat exports — transitional package

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Department of Agriculture, Fisheries and Forestry - - - - -

The Government will provide $9.3 million over three years to assist with the transition to the new wheat export marketing system introduced on 1 July 2008. This includes initial funding for the new industry regulator, Wheat Exports Australia, and funding for grower information sessions, promotion of the industry code of conduct and technical market support grants for growers.

Provision of $5.0 million in 2008‑09 has already been included in the forward estimates. The remaining cost of this measure will be met from within the existing resourcing of the Department of Agriculture, Fisheries and Forestry.

Further information can be found in the press release of 23 June 2008 issued by the Minister for Agriculture, Fisheries and Forestry.

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