Budget winners and losers

By Daneka Hill

Apr 1, 2022

Problem budget: The regional population is growing, putting pressure on housing, under-resourced services and roads. Meanwhile on the farm, input costs are rising and squeezing at profit margins. Photo by Justine Sywak

The 2022 Federal Budget was handed down on March 29 after two strong years for Australian agriculture and primary industries — and two bad years for everyone else.

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While the budget laid out a lot of money, it was hard to find a representative body or agricultural group with glowing reviews.

Most criticised the government for band-aid solutions and not addressing the skill shortage better.

Agriculture across the board

Many will be familiar with the National Farmers’ Federation ambition of a $100 billion agriculture sector by 2030.

The budget has allocated $135.6 million over five years to support this goal.

This includes: $61.6 million for biosecurity, $20.1 million for on-farm biosecurity, $20 million for pest and weed reduction, $15.4 million for shows and field days (Beef Week and LambEx), $12 million for trade events and $6.6 million for the AgMove program, which subsidies people who relocate to take up short-term work in the agriculture sector.

Fuel

Fuel excise relief has been announced, which will reduce the fuel excise by 50 per cent for six months (22¢/litre).

If someone is spending $1000 to fill their truck, this will amount to an $88 saving.

This cut will have little impact on agriculture, according to the National Australia Bank, since farm machinery is already eligible for a fuel tax credit.

Dairy sector

Australian Dairy Farmers president Rick Gladigau said farmers would be pleased to see the initiatives in the budget (the $135.6 million over five years) — but in reality agriculture deserved more, considering farmers and the mining sector were the heavy lifters of economic recovery.

Mr Gladigau also said dealing with lumpy skin disease and other biosecurity risks needed far more than the allocated $61.6 million.

Horticulture

Millions will be pumped into increasing irrigation in north and central Queensland.

These Queensland irrigation projects will be funded by a $7.1 billion transformation infrastructure program, which is to be shared across Queensland, Western Australia, Northern Territory and NSW over 11 years.

Growcom is the peak representative body for Queensland horticulture.

Growcom chief executive Stephen Barnard said he would be looking to Labor’s reply budget for accommodation strategies.

“We can’t make the regions more attractive without first investing in housing,” Mr Barnard said, expressing worry accommodation — not water or workers — would “bottleneck” the Queensland industry.

Grain growing

GrainGrowers acknowledged the $17.6 billion for general infrastructure upgrades, but the group was disappointed grain freight infrastructure (including rural roads, rails and ports) wasn’t singled out in the budget allocation.

“I have spoken to growers who have roads that are unsafe for their vehicles and equipment, some who have even had contractors refuse to complete work because they won’t travel along them,” GrainGrowers chair Brett Hosking said.

Rural Councils Victoria was also disappointed with the lack of rural road funding in the budget.

“The only ‘rural’ or ‘regional’ projects mentioned for Victoria are actually in western Melbourne, a long way from most of rural Victoria,” RCV chair Mary-Ann Brown said.

Irrigation

The National Irrigators’ Council welcomed the $6.9 billion National Water Grid Fund to improve Australia’s water security and create new irrigation areas around the nation (primarily Queensland and Northern Territory).

The Murray-Darling Basin will receive $139.9 million to improve environmental outcomes and economic developments.

Regional Accelerator Program

There has been $2 billion earmarked to help upgrade the regional Australian economy through the expansion of export, manufacturing, education and technology adoption.

Electricity

There was a $300 million investment in low emissions technology, including the development of microgrids.

“We welcome the modest continuation of funding for regional and rural solar and wind-powered microgrids,” Community Power Agency director Kristy Walters said.

“But regional communities are crying out for properly funded solutions to climate-fuelled natural disasters and high power prices.”