The Coalition government’s first Budget for 2014-15 contained policy changes and expenditure cuts which affect the agricultural sector and this report will consider the extent of changes. Overall, a ‘budget repair levy’ and welfare cuts were introduced to reduce the forecast deficit for the government from A$50 billion in 2013-14 (1.8% of GDP) to A$3 billion by 2017-18.Total federal government outlays will fall by 1.7% each year to 2017 in order to reduce the government deficit. Infrastructure spending of A$50 billion by 2019-20 is expected to provide economic stimulus and will be funded from asset sales and a higher petrol excise tax. Some Budget measures will require legislation amendments to pass through the Parliament.
Agriculture Minister Joyce, the deputy leader of the Nationals Party which represents rural electorates, said the Budget provided a positive set of measures for the agricultural sector. He pointed to an increase in funding for agricultural R&D, a stronger biosecurity system, better access to farm chemicals and a comprehensive drought support package. There is also new Budget funding of A$100 million for applied R&D, A$15 million for small exporters, A$20 million to build a stronger biosecurity and quarantine system and A$8 million to improve access to agricultural and veterinary chemicals.
The Government will also provide a package of measures to support farmers affected by drought. Agriculture will also benefit from an infrastructure program, including improved highways, better port access and the expected construction of new dams, subject to a review. Other areas of the agricultural Budget are being reduced, such as funding for the Commonwealth Scientific and Industrial Organization (CSIRO) and Landcare. The Minister said government would continue to “strengthen the sector and drive farm gate profitability” under its programs for the sector despite the overall economic policy emphasis of the Coalition government on Budget austerity
