House debates

Wednesday, 15 May 2024

Ministerial Statements

Regional Budget Statement

11:56 am

Photo of Kristy McBainKristy McBain (Eden-Monaro, Australian Labor Party, Minister for Regional Development, Local Government and Territories) Share this | | Hansard source

by leave—On behalf of the Albanese Labor government I'm proud to deliver our third regional ministerial budget statement, and I'd like to acknowledge the traditional custodians of the land where we are today and pay my respects to elders past, present and emerging.

Over the last two years I've had the privilege of travelling this country and talking to people in diverse communities, from Rockhampton up north to Whyalla in South Australia to Tambo Valley in Gippsland and of course across my own electorate of Eden-Monaro. And wherever I go I meet passionate regional Australians that are working hard to build a prosperous life for their families.

I know that regional people are talented, they're innovators and they aren't afraid to have a crack. I know this because I've spent my entire life living in regional Australia. Growing up I watched my parents work hard every day to build their own small business. They gave back to our community, and they built a good life for our family. This instilled the values of an honest living and making something of your own. It's why my husband and I followed in their footsteps and set up our own small business.

The Albanese government values hard work, and, importantly, we invest in it. It's why we're putting regional Australia at the centre of our plan for a prosperous and resilient future made in Australia—a plan that uses local skills and supports making more things in our own backyard. It's why we're also delivering targeted cost-of-living relief to ease the immediate pressures faced by regional families and businesses.

As a regional Australian I want businesses outside of our big cities to grow and to thrive—because they're central to Australia's economy. I want my kids and kids from the country to pursue a career at home—because you shouldn't have to pack up your bags to build a good future. This budget will help deliver that future.

Regional Australians are loud and proud of what they have to offer—and the Albanese government backs this. We've delivered record investments in regional people—the places they live, the services they need, the industries that stimulate our local economies.

We're relieving pressures on family and businesses, including targeted energy bill relief. And we're improving access to affordable early childhood education and have expanded paid parental leave.

We've made historic investments in Medicare—a Labor invention and something that we're strengthening 40 years on. This includes our $3.5 billion investment to triple the bulk-billing incentive, significant investments in Medicare urgent care clinics and the establishment of MyMedicare. We've also been setting regional Australians up for the future, creating a record number of jobs and boosting training opportunities. This includes over 100,000 regional people securing fee-free TAFE to date and our investment in 20 additional regional university study hubs.

The Albanese government takes the needs of our regions seriously. It's why we've implemented our Regional Investment Framework, a first-of-its-kind, whole-of-government approach to ensuring regional investment is coordinated and targeted. Labor governments have a strong record of boosting local manufacturing, harnessing economic opportunities and making our regions more productive, and we're building on this through the 2024-25 budget by putting regional industries and local economies at the centre of our $22.7 billion Future Made in Australia plan. It is a plan that will leverage the competitive advantages outside of our big cities, that will stimulate our regional economies and that will forge significant investment opportunities.

We're investing $7 billion over the next decade to support critical minerals processing in Australia through the new Critical Minerals Production Tax Incentive, which will stimulate regional jobs. On top of this, $10.2 million in 2024-25 will establish the Critical Minerals National Productivity Initiative, growing our onshore processing of critical minerals. We will deliver $566.1 million over 10 years from 2024-25 to Geoscience Australia to map the whole of onshore Australia by 2060. This will help us understand the potential of Australia's critical minerals, alternative energy sources, groundwater and other resources.

Regional Australia will also benefit from new opportunities in hydrogen, including a commitment of $8 billion over the next decade to introduce a new hydrogen production tax incentive and to extend the Hydrogen Headstart program. The $835.6 million over 10 years from 2024-25 will grow Australian solar manufacturing and open new opportunities across the solar value chain. At Punch's Creek in the Toowoomba region, an 800-megawatt solar farm will support up to 340 direct jobs during construction and generate enough energy to power 300,000 homes. We're also investing $549.1 million to build Australia's battery manufacturing capabilities, which will create a diverse and competitive domestic battery manufacturing industry. An investment of up to $7.1 billion over four years in Snowy Hydro will help deliver Snowy 2.0, a key project in Australia's renewable energy transition. This project, in a beautiful part of my own electorate, is creating cheaper, cleaner power and is just one of the many renewables projects that is uplifting regional economies.

Another industry that delivers significant returns to our regions is agriculture, which is why we're investing in the future of the sector with $1.9 million in targeted grants over three years. This will support industry led projects and regional jobs and will encourage highly skilled graduates to enter the agriculture, fisheries and forestry sector.

After a wasted decade from those opposite, we're making significant investments to improve access to doctors and healthcare professionals because regional communities deserve so much more than empty promises and colour coded spreadsheets. It's why we're making significant investments to improve access to doctors and healthcare professionals. This includes $3.5 billion to triple the bulk-billing incentive, which has already supported 555,000 additional free visits to GPs outside of our metro areas.

I'm a mum. I live in a regional community and, like so many people, have had to drive hours when my kids have been sick in the middle of the night or when there has been a weekend sports injury. The Albanese government is doing something about this. We're providing regional Australians with faster access to medical treatment and more flexibility by increasing the number of urgent care clinics in our regions. From Shepparton in Victoria to Rockingham in WA through to Batemans Bay in New South Wales, existing clinics are ensuring regional Australians can walk in and receive urgent care quickly and for free. We're building on this success by investing an additional $227 million to roll out a further 29 clinics across the country, including in our regions. We'll work with states and territories to ensure these additional urgent care clinic locations meet the needs of people living in our regions.

We know that our regional communities are screaming out for doctors, which is why we're incentivising doctors to train and work outside of our big cities. We're investing $116.2 million over five years to strengthen and support our health workforce, including in regional, rural and remote communities. We're expanding the number of rural GP training places in our rural areas in 2024 because we want more people to study in their own backyard and to continue working in their local community. And we're delivering on the long-term call from Charles Darwin University to establish the first medical school in the NT, which will boost training in this region and support growing the NT health workforce.

In so many of our rural communities, the Royal Flying Doctor Service provides essential primary health services. That's why we'll deliver $73.8 million over three years to support their vital work. Not only do the RFDS provide emergency medical care and air transport; they also run nearly 25,000 nurse, GP and dental clinics each year and deliver 20,000 face-to-face mental health consultations. Places like William Creek in outback South Australia, which I had the pleasure of visiting last year, now have a permanent RFDS health clinic thanks to our investment. One million dollars from the Albanese government got this site off the ground, and this remote community no longer need to travel up to two hours to their nearest health service.

We're delivering record investments in mental health services and training, because we want people in our regions to access care and support at the earliest opportunity. With mental health hubs in Bega and Queanbeyan in my own electorate of Eden-Monaro, I know how access to direct and on-the-ground support makes a huge difference. That's why we're investing $29.8 million over four years in our Head to Health network—which will expand access to free clinical mental health treatment. We're also delivering $27.1 million over three years towards the headspace early career program—prioritising the need to build mental health capabilities and workforces outside of our big cities. On top of this, we're investing $588.5 million over eight years to establish a national digital mental health service—to give people in our regions more options with accessing care.

We're a government that's focused on delivering support, regardless of your postcode. That's why we're rebuilding Services Australia, which was completely gutted by those opposite—resulting in slow processing times and phone delays. We're investing $2.8 billion in Services Australia to support the delivery of quality services, efficient customer payments and rapid responses, particularly during natural disasters, which all too often hit our regions.

After a decade of neglect, we're also delivering on our commitment to improve aged care, which was left in tatters by the those opposite. Right now, older Australians are receiving more care in their homes than ever before—historic levels of care—thanks to our record investment. We're building on this, with $88.4 million over four years to continue improving the quality of services, including the implementation of 24/7 registered nurses. We'll invest in an additional 24,100 home-care packages, to support people to live independently for longer and to reduce wait times—which will have huge benefits across our regions.

We're a government that recognises the importance of connecting regional people and investing in the services they need. That includes our veterans, because Labor has a proud history of tailoring veteran support through the stages of their defence career and into their civilian life. As part of this, we'll deliver $48.4 million over two years to the Veterans' Home Care and Community Nursing programs, to assist veterans to remain independent for longer.

We know our regions are great places to live, to work and to invest in. We've strengthened partnerships with all levels of government, to deliver high-priority projects that have lasting benefits. We're delivering billions of dollars towards infrastructure, transport, road safety, housing, and energy efficiency projects. We're progressively increasing Roads to Recovery funding from $500 million to $1 billion per year. We're increasing road black spot funding to $150 million per year.

These programs are already supporting hundreds of projects across the country right now, many of which I've had the pleasure of visiting over the last two years—including the Avenue of the Allies at Tanilba Bay in New South Wales and Dixon Drive at Gladstone, which I visited just last week as part of my trip to Beef2024.

We'll deliver the $200 million Safer Local Roads and Infrastructure Program. And because every local community should have confidence in the roads they're driving on, we're progressing a number of road safety projects under our $120 billion Infrastructure Investment Program pipeline. Projects under the pipeline will also connect our regions to key freight routes.

In the two years I've spent in the regional portfolio, regional businesses have told me it's hard to keep workers in their communities, because there's nowhere to house them—a direct consequence of nearly 10 years of eyes wide shut from those opposite—but we're doing something about it.

We're making significant investments to build more homes across the country. On top of the $500 million we've already committed to the Housing Support Program, we're investing an additional $1 billion to support states and territories continue to build roads, sewers, energy, water and community infrastructure needed to deliver more housing. We're providing $1.9 billion in concessional loan financing for community housing providers and charities to deliver new social and affordable dwellings, including in our regions. And because we know how hard it is to get a tradie, particularly in our regions, we're committing $90.6 million to boost housing supply, by growing Australia's construction workforce.

This investment is part of our broader plan to support people in our regions build the skills they need now and into the future. We'll invest $350.3 million over four years to expand the availability of FEE-FREE Uni Ready courses. This will support people in our regions to take the next step in their careers and will help narrow the enrolment divide with our city neighbours.

Over five years, $91 million will increase vocational education and apprenticeships in clean energy occupations. That's on top of significant investments we're making to support workers impacted by energy system changes, including in our regions, to secure new training and employment opportunities.

We're investing $777.4 million over five years to fund the new Remote Jobs and Economic Development Program, which will work with First Nations people and communities to help close the gap in employment outcomes.

Unlike those opposite, we take disaster preparedness and risk reduction seriously.

Natural disasters are something my own electorate of Eden-Monaro has felt deeply, which is why I'm proud that Labor are on the front foot.

We're investing $73.3 million over four years to support the National Emergency Management Agency continue to play a leading role in disaster preparedness and recovery.

The climate is changing and we are supporting regional communities when it comes to climate risks and adaptation, including $519.1 million in Future Drought Fund programs—which will support regional businesses and Aussie farmers to invest in new technologies that will improve their drought resilience.

We're investing $20.7 million over seven years to engage with communities on their energy transition, because locally led ideas will be central to unlocking future opportunities. And in my own territories portfolio, I'm proud that we're funding $22.5 million over four years for critical asset replacement and repair in our non-self-governing territories.

Since we came to government, we've invested in a better future for regional Australians.

We're responding to cost-of-living pressures, including a tax cut for all 13.6 million Australian taxpayers.

We're investing $3.5 billion in additional energy bill relief for all Australians, with households to receive a $300 rebate, and eligible small businesses receiving a $325 rebate.

We're increasing the maximum rates of Commonwealth Rent Assistance by a further 10 per cent, to help relieve rental pressures.

We're making student loans fairer, by changing the way they're indexed.

We're wiping around $3 billion in student debt from the Higher Education Loan Program—meaning people in our regions will receive a credit, backdated to 1 June 2023.

We'll deliver $319.50 per week to students in teaching, nursing, midwifery, and social work during their mandatory prac, which will also encourage more kids from our regions to pursue study in these priority areas.

For women in our regions, we know that financial insecurity is a major contributing factor to whether they stay, leave or return to a violent relationship. That's why we're investing $925.2 million over five years to establish a permanent leaving violence program, providing life-changing financial support for women after leaving a violent relationship and for those who are seeking support and a safety plan to leave a violent relationship. We're a government that backs women, which is why we'll also invest $1.1 billion over four years to pay super on government funded paid parental leave. As a mum from the regions, I know this will have a huge impact, because women retiring with 25 per cent less in their super than men just isn't good enough.

This budget is about delivering on our commitments to regional Australia, building on the solid foundations we've established across our first two years in government. It's also about securing a better outcome for people and their families. It's about supporting better access to opportunities and to services, and it's about creating the environments for regional businesses and industries to innovate and grow through a future made in Australia. It's a budget that responds to pressures felt today while ensuring we are on the right track to achieve the potential of tomorrow. When we invest with purpose, when we invest for people, when we invest with principles and when we invest for the future, we're building a stronger regional Australia for generations to come.

12:16 pm

Photo of David LittleproudDavid Littleproud (Maranoa, National Party, Shadow Minister for Agriculture) Share this | | Hansard source

It was just under two years ago, at the conclusion of the federal election, that the Prime Minister stood up at an RSL in the inner west of Sydney to give his first televised address to this nation. In his speech, he took this opportunity to articulate the two guiding principles that would drive his government: no-one would be held back, and no-one would be left behind. We've heard these words repeated many times, yet this vision, this promise, this slogan—no-one held back and no-one left behind—rings hollow for the 30 per cent of Australians who live in regional Australia. They are the hardworking men and women who have always been the backbone of our economy. They are the proud men and women who grow our nation's food and fibre and dig up our resources. They are those dedicated Australians who contribute enormously to sectors like primary production, tourism, mining and manufacturing—all those essential services that keep our country moving forward.

It should never be lost on those sitting opposite that much of the wealth which underpins their electorates in metropolitan Australia and this budget comes from the efforts of those who live, work and invest in the regions. However, the stark reality is that, in just under two years of this Labor government, the people, the families, the communities and the industries in regional Australia are doing it tough, and it's a direct consequence of the policy decisions this government is making.

What we've seen in the 24 months since the Albanese government was elected is an unprecedented and targeted assault on the regions. We've seen enormous cuts to regional infrastructure in road, rail and water projects. We've seen the government tear up the dedicated agricultural visa despite crippling and widespread workforce shortages. We've seen changes to the PALM scheme to the point where it's almost unworkable for our primary producers. We've seen Labor pushing ahead with a $150 million fresh food tax on Australian farmers to make them pay for the biosecurity risks of their international competitors. We've seen the devastating human toll of the government's move to shut down Australia's live sheep export industry.

We've seen the end of bipartisanship on the Murray-Darling Basin Plan and the return of water buybacks and the recovery of an additional 450 gigalitres of water. We've seen the ongoing rollout of wind and solar factories and the 28,000 kilometres of transmission lines across agricultural land in pursuit of a disastrous all-renewables approach to our energy grid. We've seen the distribution priority area classification system blown up, which has made it more difficult for rural and remote towns to recruit a doctor. We've seen a tax on new vehicles, where Australian families, farmers and tradies will pay more for SUVs, four-wheel drives and utes. We've seen more than $400 million wasted on a referendum that divided our nation. And we've seen a cost-of-living crisis continue to worsen, where inflation remains high and where, under Labor's watch, the cost of almost everything is going up—a crisis that has been further compounded by shameful price gouging by the big supermarkets, with Labor taking far too long to act. These are just a few examples of what this government has inflicted on regional Australia. All over our regions it has been hit after hit. It is clear that these are the practices and decisions of a government that is blinded by an ideology which has no empathy, no understanding and no recognition of the practical realities of living in regional Australia and it only promises to get worse, because last night the Treasurer did us over again. This is a budget that completely fails regional Australia.

Ever since it was elected, the Albanese government has proven itself incapable of dealing with the cost-of-living crisis that is smashing the hip pockets of so many families. These are families that simply can't afford a third budget failure in beating this crisis, a crisis where Australians are paying 10 per cent more for their food, 12 per cent more for housing, nearly 20 per cent more for their power and 25 per cent more for their gas—their gas. The ultimate result of Labor's economic mismanagement is that families in regional Australia are being hit with higher taxes, higher grocery bills, higher energy bills and higher mortgage repayments.

Driven by poor policy and surging migration, Australia is facing a housing crisis. It is an issue that is biting hard in the regions. Since Labor was elected, national median rents have increased by 21 per cent, and Australians are paying an extra $24,000 per year on an average mortgage. Immigration is out of control, and the budget papers confirm the unprecedented increase in net overseas migration which will now see nearly 1.7 million new migrants coming to Australia over five years. This government has fuelled our nation's housing and rental crisis with record immigration at a time when housing approvals are at an 11-year low. While cost-of-living pain intensifies and the housing crisis worsens, many entrenched problems in regional Australia remain under Labor's radar. This is a government that refuses to fix the mess it caused by its decision to change the parameters of the distribution priority areas, a move that has forced rural towns into direct competition with city suburbs to recruit GPs. For Australians living in regional, rural and remote communities, this remains difficult to accept, and it puts lives at risk.

Access to child care is an enormous source of stress and frustration for young families living in our regions. Currently about nine million Australians live in a childcare desert while one million have no access at all. We urgently need innovative measures that provide flexibility, choice and access for families living outside the major cities, something that the Albanese government has again failed to do.

When it comes to infrastructure and water, we noted that in its first two budgets the Albanese government swung the financial axe over crucial projects which will be worth billions of dollars. Labor cancelled, cut and delayed $25 billion worth of infrastructure projects over its first two years. They abolished more than $10 billion worth of regional programs, crucial programs such as the Building Better Regions Fund, the Local Roads and Community Infrastructure Program, community development grants, the Stronger Communities Program and the Roads of Strategic Importance, among many others, are all gone. On top of this we saw transformational water projects including Hells Gate Dam, Dungowan Dam and Emu Swamp Dam all having their funding ripped away. Unfortunately, in last night's budget we saw this trend of cuts and neglect continue with confirmation that not one cent for regional economic development community infrastructure will be delivered this year. Meanwhile, not one new program to support regional economic development was announced. Despite claiming that $1 billion will be made available to strengthen regional communities, funding which would commence on 1 July 2023, no money will be paid out this year under either the Growing Regions or the Regional Precincts and Partnerships Program.

In total, our regions have been robbed of $130 million worth of investment that was intended to be delivered this year. In addition to the $25 billion that was cut and cancelled in our first two years, these budget papers reveal a further $2.1 billion worth of infrastructure that has been gutted from the regions. This takes total project cuts and cancellations under Labor to more than $27 billion. This is a government that now expects to spend $1.6 billion less on infrastructure this year than they budgeted for just five months ago in MYEFO. This is yet more proof of Labor's inability to deliver. Road investment will be $906 million less in 2024-25, and rail investment has been reduced by $528 million across the same period from what was budgeted last May. It's a shame that Labor can find money for an extra 36,000 Canberra bureaucrats but couldn't spend money to fill a few potholes—let alone build new roads—for regional Australia.

In the water portfolio, Labor have cut more than $590 million in funding for the Paradise Dam Improvement Project, the Big Rocks Weir project and the Hughenden Irrigation Scheme and redirected those savings to other priorities they haven't even announced. Disgracefully, this government has form when it comes to ripping out funding from water projects, and these cuts add to the $7 billion that was removed from water infrastructure in Labor's first budget. It's also an insult to impacted regional communities that Labor is still hiding how much funding it has allocated to water recovery in the Murray-Darling Basin. These are the water buybacks which will drive up the cost of food and pour more fuel on a cost-of-living crisis. What they're not hiding is the additional $217 million in funding that the Department of Climate Change, Energy, the Environment and Water have received to increase their number of public servants by 35 per cent. It's unclear why the department needs more Canberra based bureaucrats at a time when the government is damaging regional communities in our nation's food bowl.

But it's not just the paralysis of infrastructure and water where this government has failed the regions. Despite being legislated more than a year ago, Labor's $15 billion National Reconstruction Fund is yet to deliver a single cent into Australia's manufacturing industry. Those opposite may talk a big game about 'made in Australia', but there's been minimal action on the ground.

This is a budget that also shamelessly highlights the contempt the Albanese government holds for Australian agriculture, and among the most troubling measures confronting this sector is the government's so-called biosecurity protection levy, which is due to take effect in less than two months. It's, at core, a new tax which is expected to collect $50 million a year—a tax on Australian farmers and Australian fresh produce. It's a fresh food tax that will make our farmers pay the biosecurity risk of their foreign competitors so they can bring their products into this country and compete with Australian producers on the shelves of our supermarkets. In what parallel universe would any government do this to our primary producers? But, despite widespread opposition, with a glaring lack of detail Labor is pushing ahead by setting the tax rate as a proportion of an industry gross value of production over a three-year period.

Unlike under those opposite, under a coalition government Australian farmers will not be punished by the biosecurity risks of their international competitors. If elected, our approach to sustainably fund biosecurity in the long term will target those who create the risk—the importers. This will be done by establishing an importer container levy, which would apply to all containerised cargo coming into Australia. This is the sensible, reasonable and fair approach that's needed. So, when it comes to the biosecurity protection levy, we urge the Albanese government to listen to the concerns of our farmers and industry leaders and to take action.

An essential part of our agriculture sector is the live export industry. It contributes more than $1 billion, provides a crucial source of employment across regional Australia and is underpinned by the world's best animal welfare standards. However, what we see in this horror budget is $107 million committed by the Albanese government to transition to the end of live sheep exports by 1 May 2028. It's inexcusable that we have just witnessed an Australian government throw more than $100 million in taxpayers' money to shut down a lawful, profitable and sustainable animal production industry—one which employs more than 3,000 Western Australians.

The decision by the Albanese government to proceed with this policy is disgraceful, heartless and morally bankrupt. An essential question is: while sheep producers are suffering from drought and falling prices and being forced to shoot their own livestock, why has Labor callously placed the interests of extreme activists over the emotional wellbeing of our farmers? This is a decision that will cost thousands of jobs and will tear apart the social and economic fabric of Western Australia. Shamefully, this is a decision that has never been predicated on science or economic data, and it's one that ignores the clear evidence that this trade is growing substantially and the comprehensive animal welfare reforms implemented in 2019 have been world leading.

I say to those opposite that ripping up this trade—cutting and running—and ruining innocent livelihoods in the process is not the Australian way. Today I reaffirm the federal coalition's ironclad commitment that, if we are elected, we will protect, support and reinstate the live sheep export industry if Labor succeeds in shutting it down. Under the coalition, this trade has a future, and this side of the House will always stand shoulder to shoulder with our farmers.

In this budget, when it comes to agriculture, the hypocrisy of the Albanese government is staggering. Take, for example, drought assistance. Not only is the government announcement of a $519 million Future Drought Fund nothing new, given that it was the coalition who set it up when we were in office, but the stark reality is that Labor voted against it in 2019. So we welcome this measure and the support that it will offer. It's worth recognising that when this fund was first created it was Labor MPs who turned their backs on farmers and local communities at a time of drought when they needed it the most.

In conclusion, in contrast to the empty slogans of the Albanese government under their watch, our regions are being held back and left behind. Right now, the people in that part of the nation are struggling. Under Labor, they feel abandoned, ignored and taken for granted. I want to take this opportunity to assure those regional Australians who are watching this broadcast that, if the federal coalition is elected into government, we'll take the decisive action that's needed to give them a fair go. We'll take action on Labor's cost-of-living crisis by tackling the drivers of inflation. We'll take action by delivering the strong infrastructure funding pipeline that our regional communities need. We'll take action by reinstating the ag visa and ensuring that the PALM scheme works for farmers so that we can establish a sustainable long-term regional workforce. We'll take action by axing Labor's shambolic fresh food tax and instead properly funding our biosecurity system by targeting the risk creators—the importers—instead of forcing primary producers to pay for the biosecurity risks of international competitors. And we'll take action by always supporting and backing our live export industry and reinstating the live sheep trade, in contrast to Labor, who have embraced a destructive ideology to tear it down. Unlike those opposite, the federal coalition will take the action that's required to give regional Australia the optimistic and promising future that it deserves.