E&OE...
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As the drought continues to bite, the plight of Australia's rural communities remains at the forefront of the Government's mind.
Last week I announced a significant extension of drought assistance funding, lifting the Government's overall level of support for rural and regional areas since 2001 to more than $2.8 billion.
Without a strong economy, of course, this kind of vital relief for our iconic and economically important farm sector would not be possible. And because our Budget remains in such a strong position, the Government is able to look at further help.
Tomorrow the Government will be examining what more can be done for drought afflicted regions.
We are mindful that a significant percentage of Australia's current crops are expected to fail in the coming weeks and that many farmers have taken out extra loans and signed forward contracts on a harvest that may not eventuate.
Feed levels for grazing stock are also dwindling and the outlook remains bleak. Water inflows into storages in the Murray-Darling Basin are worse than at this time last year, affecting both the horticultural and livestock industries.
I can assure everyone in rural and regional Australia that drought assistance like income support, interest rate subsidies, counselling services, special taxation measures and small business help will remain in place for as long as it is needed.
Last week I foreshadowed a liberalisation of both the off-farm income test and the off-farm assets test for drought assistance and the Cabinet will be examining the extent of the relaxation tomorrow.
The Government has received representations from the National Farmers' Federation and individual farmers arguing that these tests are too restrictive given the harshness and prolonged nature of the drought.
I want all farmers and regional communities to know that the Government is determined to help them get through the drought and that there are other relief and support proposals that will also be considered tomorrow.
The current drought is a national crisis and my Government will do all it can to help rural and regional Australia get through this extremely difficult time.
[ends]
Listen to this Speech (MP3 - 2.06Mb - 134secs)