Palaszczuk Government looking out for Rural Queensland

Treasurer Curtis Pitt and Agriculture Minister Leanne Donaldson today announced an unprecedented support package for rural Queensland including establishing an Office of Rural Affairs.

“The comprehensive measures ramp up support for rural Queensland to build its future and respond to the continuing drought,” the Treasurer said.

“The Palaszczuk Government is focused on dealing with the legacy issues in Queensland agriculture associated with rural debt, on stimulating renewal and investing for the future,” he said.

“A key element of the package is building capacity and that is why I am announcing the removal of transfer duty on all familial property transfers for farms.

“I have listened to calls from farming families across the state, and to lobbying from the Agriculture Minister, that the removal of stamp duty will make a tangible difference to succession and renewal.

“It’s a measure, part of a Rural Assistance Package worth $36.044 million that brings Queensland into line with other States and Territories and will make it easier for sons and daughters to buy out their parents who are seeking to retire.

“If the family farm property is valued at $2.5 million, and the purchaser pays that amount, there is a saving of transfer duty of $124,275.”

The Treasurer said in addition there would be grants for businesses, including to seek advice on succession planning, and improved accessibility to the First Start Loans available through the Queensland Rural Adjustment Authority (QRAA).

“The Rural Assistance Package is a whole of government response aimed at reducing financial stress and improving financial sustainability within the rural community, particularly in relation to succession and renewal within the family farming sector.”

The Treasurer said the Package had been informed by and built on proposals flagged by the Rural Debt and Drought Taskforce.

Minister Donaldson said the Palaszczuk Government recognised the serious problems caused by the drought, especially in the west of the state where some producers had been in in drought for more than four years.

“Our response in this Budget is a series of initiatives with $77.9 million of funding for the Queensland Government 2016-17 Drought Assistance Package and Rural Assistance Package,” the Minister said.

“We will also be providing up to $1 million worth of grants per annum over three years for the sector to seek advice on farm financial management, climate risk mitigation, succession planning and/or to undertake multi-peril insurance assessments.

“Rural and Regional Queensland is the lifeblood of Queensland. In recognition of this the Queensland Government is establishing an Office of Rural Affairs in the Department of Agriculture and Fisheries to ensure the necessary rural and regional information is available for government policy decision making.

“To help protect our farmers, the Government will be introducing new Farm Debt Mediation legislation to require lenders to conduct a formal mediation process.

“Having a legislated mediation process before bank enforcement action can deliver more positive outcomes for all parties.”

Support measures includeproviding additional support for rural school students in drought affected communities at a cost of $3.7 million over three years.

Minister Donaldson also flagged changes to QRAA to improve the Queensland Government’s concessional loan program.

“QRAA is to be reconstituted to become the Queensland Rural and Industry Development Authority (QRIDA) with an expanded Board charter and improved flexibility,” the Minister said

“In addition, the Primary Industry Productivity Enhancement Scheme (PIPES) loans will be enhanced to reflect the higher capital requirements in agriculture.

“This includes doubling the Sustainability Loans for up to $1.3 million and increasing the First Start Loans to up to $2 million (up from $650,000).

“We will also investigate widening the scope of PIPES to the post farm gate sector.

Finally, the Rural Assistance Package includes more than $6.99 million of funding over three years for continued pest and weed management programs across Queensland including further assistance for producers to build exclusion fencing for wild dogs.”

The Minister said the Palaszczuk Government would continue its support of impacted producers through the Drought Relief Assistance Scheme, rural financial counselling services, and other drought relief measures.

The updated Queensland Government Drought Assistance Package provides $41.921 million in 2016-17, including:

• $24.071 million for the Drought Relief Assistance Scheme
• $4.2 million for land rent rebates and water licence waivers
• $4.0 million for grants under the Community Assistance Program
• $4.0 million allocated for the Drought Relief from Electricity Charges Scheme
• $1.5 million for the Royal Flying Doctor Service drought wellbeing service
• $650,000 for the State contribution to the Rural Financial Counselling Service including an additional two positions while this drought lasts
• $3.5 million for a new Queensland Climate Risk and Drought Resilience program

Other highlights for the sector in the Budget include establishment of a Queensland Climate Risk and Drought Resilience program.

The aim is to improve farm business capacity, seasonal forecasting and provide decision support tools to better manage climate risk and deliver on its election commitment to help producers be better prepared for risks such as drought.

Included in the Drought Resilience Program is:

• The establishment of the Queensland Drought Mitigation Centre in partnership with the University of Southern Queensland. 
• This centre will work with national and international climate modellers to improve seasonal forecasts for northern Australia.
• Research into improving predictions of multi-year droughts and decision support tools through the Dept Science Innovation & Technology (DSITI)
• Programs to help Queensland agriculture adapt to future climate scenarios through improvements to regional climate change forecasts and practical, local adaptation strategies for our agricultural industries.   

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