Following my further visit to Cyclone Larry-affected areas this week, I announce that, to assist eligible businesses, including farmers, recover from Cyclone Larry as quickly as possible, the Australian Government is extending the period of the wage subsidy measure from 13 to 26 weeks. The Australian Government will also extend by one month the period in which applications for this wage subsidy can be made. The cut-off date for applications for the wage subsidy will now be 31 August 2006.
The Australian Government has to date provided $239 million to assist the people of Far North Queensland following the devastation caused by Cyclone Larry in March. This includes:
$129 million paid to businesses and farmers in tax-free grants;
$37.4 million in ex-gratia payments to those whose principal place of residence was uninhabitable for two weeks;
$20.3 million in wage subsidies of $400 per fortnight for each eligible full-time equivalent employee;
$6.9 million in income support for small business and farmers, with the asset test being waived in relation to the capital value of the farm or small business;
$2.3 million in fuel excise relief;
$2 million for infrastructure works in national parks; and
$1.1 million contribution to the Tropical Cyclone Larry Relief Fund.
This is on top of the Australian Government's reimbursement to the Queensland Government of up to 75 per cent of its eligible expenditure on natural disasters in a given financial year, over certain thresholds. Under these long-standing Natural Disaster Relief Arrangements (NDRA) with the states, the Australian Government has already advanced the Queensland Government $40 million for Cyclone Larry.
I announced earlier this month that the Australian Government would allow the removal of debris from farms in the cyclone-affected areas under the Queensland Government's Operation Farm Clear programme to be considered as eligible expenditure under the NDRA.
In conjunction with the Queensland Government and under the NDRA, loans of up to $500,000 for nine years with principal and interest repayments deferred for up to two years are available to eligible businesses and farmers impacted by Cyclone Larry. Twenty five percent of the loan, up to a maximum of $50,000, can be taken as a grant. Also under the NDRA, we extended assistance to primary producers who had to hire generators to keep animal stock alive and healthy and provided a free bus service for those who had to temporarily relocate after Cyclone Larry.
I was once again impressed during my visit by the community spirit and resilience of the people of Far North Queensland in getting back on their feet after Cyclone Larry.