May 3, 2016
by Dafyd Martindale
The 2016 Federal Budget, which was handed down in Canberra on Tuesday night, has not offered very much for the South Burnett’s rural producers.
The two big ticket items – a $595 million commitment towards the estimated $10 billion inland rail project to connect Brisbane to Melbourne (without any specified start date) and changes to existing wine tax arrangements – will have little effect locally.
But hot button issues like fixing mobile black spots or making changes to the Federak Government’s proposed 32.5 per cent flat rate backpacker tax, which is set to be introduced from July 1, seem to be off the agenda for the moment.
The government has not allocated any new funding for its Mobile Black Spot program in this Budget.
While 6000 mobile black spots have been identified nationwide, the $160 million program only aims to fix 499 of them.
How the South Burnett will fare will not be known until later this year when the second round of successful projects is announced.
Treasurer Scott Morrison has hinted there may be an announcement about the unpopular Backpacker Tax during the election campaign, but the Budget contains none.
However, rural research and development programs seem to have escaped the axe in 2016 after suffering major cuts in recent years.
Landcare, which was stripped of half a billion dollars in the last two Budgets, will receive an extra $22.6 million over three years.
Geosciences Australia has also received a $100 million extra for “mapping mineral, energy and groundwater potential in northern Australia and South Australia” in an effort to restart mineral exploration.
One bright spot is that spending by farmers on small machinery is expected to continue after the government extended its popular write-off for equipment purchases.
Businesses with an annual turnover of up to $10 million will be able to claim an immediate write-off for equipment purchases up to $20,000.
This initiative has seen a dramatic increase in farm machinery spending since it was introduced by then-Treasurer Joe Hockey last year.
