Statement 1: Budget Overview (Continued)
A more resilient and sustainable regional and rural Australia
National Drought Program Reform
The Government has committed to a National Drought Program Reform including investing $99.4 million over four years for a new Farm Household Allowance (FHA). The FHA will be paid at the Newstart allowance rate and will be available to eligible farm families in periods of hardship. The FHA will better support farmers and their families to prepare for future challenges, including drought.
The reform also supports farmer resilience through social support services, the development of a new farm business management skill set, and the development of tools and technologies to inform farmers' risk management decision making. Enhancements to the Farm Management Deposits (FMD) Scheme under the Government's Farm Finance initiative will also help farmers better prepare for the future.
Farm Finance
The Government will further assist agricultural businesses through Farm Finance. Under the program eligible farm businesses will be able to receive concessional loans of up to $650,000. Farm Finance also includes funding for 17 additional full‑time equivalent rural financial counsellors, and establishing a nationally consistent approach to farm debt mediation.
In addition, the Government will enhance the FMD Scheme to give greater flexibility to primary producers in managing their finances. The Government will increase the non‑primary production income threshold for FMDs from $65,000 to $100,000, allowing primary producers to diversify their income base and also allow primary producers who hold multiple FMDs to be able to consolidate them once the accounts have been held for a minimum of 12 months.
Supporting jobs and growth in Tasmania
The Government has committed over $330 million to support the historic Tasmanian Forests Agreement, which provides a long‑term future for the forestry industry and environmental protection for our world famous forests.
The Government has further committed over $22 million to strengthen economic development, generate jobs, improve productivity and promote long‑term economic, social and environmental sustainability in Tasmania. The Government is investing in a new intermodal freight terminal at Bell Bay to facilitate the movement of Tasmania's logging and other bulk freight; supporting the Australian Maritime College to deliver specialised training for over 500 maritime students; and assisting the Australian shipping industry to meet its future workforce training needs. This is in addition to the $4 million of funding to expand the Vodafone Hutchison call centre, securing 750 jobs in Hobart.
Recognising Tasmania's leading role in Antarctic research and operations, the Government will provide over $42 million to support ongoing research and the maintenance of our presence in Antarctica.
Reef Rescue
The Government has committed to providing another $200 million for Reef Rescue over the next five years. This will help farmers in the Great Barrier Reef catchment to improve farming practices to reduce sediment and nutrient run off, which will improve the quality of water entering the Great Barrier Reef Lagoon.
Disaster relief and recovery
This year, a number of states were impacted by fires, floods and severe weather with some Queensland communities experiencing a third consecutive year of flooding. The Government is committed to supporting individuals, communities and local economies to help them recover and rebuild following disasters. The Government expects to contribute an estimated $1.9 billion towards recovery and reconstruction costs in Queensland for the Cyclone Oswald response. Total Commonwealth expenditure under the Natural Disaster Relief and Recovery Arrangements (NDRRA) for the five years from 2012‑13 is estimated to be $6.2 billion.
Floods support package
The Government will provide $69.9 million towards a Floods Support Package, including $57.2 million exceptional circumstances funding under the NDRRA, to help Queensland communities and local economies recover from flooding that occurred in Queensland in early 2013. This includes assistance for clean‑up and recovery efforts, and support for businesses, primary producers, and local councils, including a commitment of $40.0 million towards a betterment fund to help rebuild local council assets to a more disaster resilient standard.
Affordable insurance
Floods and other natural disasters have put upward pressure on insurance premiums in many regions, especially those at high risk of such events. The only sustainable way to reduce insurance premiums is to reduce the level of risk. That is why the Government is investing $100 million in natural disaster mitigation directed specifically at lowering insurance premiums. A National Insurance Affordability Council will assess proposed mitigation projects, review the potential and actual impact on insurance premiums and explore ways to make flood risk data more widely available.
Murray‑Darling Basin Plan
The Government is providing $3.5 billion over 12 years to support the implementation of the historic Murray‑Darling Basin Plan. As a part of this, $1.8 billion will be invested to return an additional 450 gigalitres (GL) to the environment on top of the benchmark 2,750 GL delivered through the Basin Plan. The 450 GL will be recovered through projects that will minimise the social and economic impact on Basin communities, and will not only benefit major wetlands across the Basin and the lower lakes in South Australia, but also improve the resilience of the Basin as a whole, and its ability to withstand shocks, including drought.
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