Federal Budget 2020-21 - Repairing roads in the Wheatbelt, tax deductions and emergency water infrastructure

Repairing roads in the Wheatbelt, tax deductions and emergency water infrastructure in drought-impacted communities are among projects receiving a cash injection under the Federal 2020-21 budget handed down today. As part of a $328 million support package for the agricultural industry, the Morrison-McCormack Government will invest in several projects set to help farmers, including building the agricultural workforce and establishing drought research hubs across the country. WAFarmers chief executive Trevor Whittington welcomed the $50 million extension of the On‑farm Emergency Water Infrastructure Rebate Scheme for drought affected communities. “That’s very welcome,” he said. “The important thing will be the criteria to make sure it’s relevant for our farmers who aren’t reliant on irrigation to invest in water security — cleaning and expanding dams. We’d look for the State Government to match it.” He was also pleased $80 million had been set aside for the Wheatbelt Secondary Freight Route Network project and hoped the State Government would match it also. “The Federal Government needs to realise the grainbelt is not just the Wheatbelt, it includes Esperance and the Great Southern, so hopefully they’re not going to miss out.” He said the “biggest advantage” for farmers was the acceleration of tax deductions. The Government said 99 per cent of businesses would now be allowed to write off the full value of assets they purchase. Businesses with a turnover of up to $5 billion will be able to immediately deduct the full cost of eligible depreciable assets from October 6 to June 30, 2022. While welcoming some aspects of the budget, Mr Whittington labelled much of the funding “bandaid” fixes and said the “hangover” from the 2020-21 Budget would “last for years”. “In the scheme of things these are bandaids,” Mr Whittington said. To build the agricultural workforce which has been heavily impacted by the coronavirus pandemic, $17.4 million has been invested in relocation assistance and $16.3 million in incentivising young Australians to take up farm work by temporarily changing Youth Allowance (student) and ABSTUDY independence eligibility criteria. Federal Agriculture Minister David Littleproud said the investments — which come under the Federal Government’s Economic Recovery Plan — would drive jobs and economic growth, cementing agriculture’s role in the nation’s COVID-19 recovery. “This suite of reforms will modernise Australia’s export systems by slashing red-tape and streamlining regulation and service delivery for our farmers.” As part of the package, $222.2 million will be delivered over 4 years for digital services to take farmers to market. “We’re making it faster and cheaper for farmers to get their product to market, while retaining the levels of quality and assurance that have made our exports world-class,” Mr Littleproud said. Mr Whittington said that would likely help the horticultural and wine industries, but he would like to see an investment in telecommunications and phone coverage which would help all farmers.