Statement 1: Budget Overview (Continued)
Rebuilding communities affected by natural disasters
This Budget reflects the substantial commitment the Government has made to support affected communities deal with the tremendous impact of the recent natural disasters. Around $6.6 billion over six years is being provided for immediate relief and assistance, and to support the difficult task of rebuilding affected communities.
To ensure value for money for taxpayers, the Government has introduced a number of oversight and accountability measures, including the establishment of a Reconstruction Inspectorate to provide an additional level of checks and balances.
Funding the recovery and rebuilding effort
Under the long standing Natural Disaster Relief and Recovery Arrangements (NDRRA) with the States and Territories, the Government expects to contribute around $5.4 billion to the States and Territories to aid the recovery.
The vast majority of this funding is being invested in rebuilding damaged essential public infrastructure, mostly roads and bridges but also other items such as schools. Current assessments indicate that more than 79,000 kilometres of Queensland's state and local government road network has been damaged.
The Government is contributing $213.6 million to help Queensland's local councils repair utilities and infrastructure, and support their efforts in recovering from the floods and Tropical Cyclone Yasi. A tailored package of assistance totalling over $950 million has been developed to address the unique challenges faced by far north Queensland in rebuilding.
Within the package to help Queensland's local councils, up to $176.5 million is being provided to fast‑track the repair of damaged infrastructure owned by local governments, including severely damaged water and sewerage infrastructure, marine infrastructure in the Cassowary Coast, and reconstruction of the Brisbane ferry terminals and Riverwalk. There is also funding of $37 million to help regional and remote councils employ people to perform important clean‑up and repair work.
Funding provided under the NDRRA has also contributed to personal hardship and distress assistance for individuals and families, concessional loans and clean‑up and recovery grants for small business, primary producers and not‑for‑profit organisations, and freight subsidies for primary producers.
In addition, funding will go towards Community Recovery Packages to support community development and recovery, mental health services, financial counselling support, crisis accommodation and respite care for people with disability.
The Government is providing advance payments of NDRRA funding to Queensland to ensure that funds are available to start rebuilding affected communities and support the return of economic activity as fast as possible, and stands ready to provide an advance payment to Victoria should a National Partnership Agreement be signed.
Additional help to get those affected back on their feet
The Government is also providing direct assistance to support individuals, families and businesses in those areas worst affected by the disasters. Around $900 million in Australian Government Disaster Recovery Payments (AGDRP) is expected to be paid to individuals and families in those areas worst affected by the disasters. The payments are $1,000 per eligible adult and $400 per eligible child. More than 700,000 AGDRP payments have been made as at 29 April 2011 as a result of the natural disasters since late last year. Other key measures include the following:
- more than $95 million in Disaster Income Recovery Subsidies is expected to be paid to provide income support to eligible employees, small business and primary producers in the worst affected areas in Queensland;
- to assist local councils with the clean up and recovery effort, the Government brought forward more than $354 million in Financial Assistance Grants to the Queensland and Victorian Governments. These grants have been made available to local councils in disaster affected areas;
- the Government has also pledged donations totalling $14.1 million to the Queensland Premier's Disaster Relief Appeal, the Red Cross Victorian Flood Appeal and the Perth Lord Mayor's Distress Relief Fund; and
- the Government is providing $6 million towards a Tourism Industry Support Package to provide a vital boost for the many families and small businesses that depend on Queensland's reputation as one of the world's most attractive tourism destinations.
These measures are in addition to the Government's substantial contribution under the NDRRA, in recognition of the enormous scale of the damage caused to communities across Australia.
The Government has fully funded its response to the recent natural disasters. In addition to the expenditure savings identified, the Government also introduced a modest one‑year progressive levy, which will not be paid by people directly affected by the floods or cyclones, or by low‑income earners.
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