Sixty affected councils across Queensland and NSW to be handed $1m each

This article is more than 2 years old

This article is more than 2 years old

Communities reeling from Australia’s worst drought in more than 50 years will be given extra funding to help deal with the dry conditions in their own way.

Sixty drought-affected councils across western Queensland and New South Wales will be handed $1m each by the federal government to spend on anything from trucking in drinking water to building new community facilities.

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The grants are part of $1.8bn in extra funding the prime minister announced on Sunday to help farmers and communities.

Malcolm Turnbull, who was in Forbes on Sunday, said the government was responding to feedback it had received from many farmers in recent weeks.

Giving money to councils – 36 in NSW, 22 in Queensland and two in Victoria – would help inject money into towns, he said.

“That’s going to be putting money into these communities – critically important at this time,” Turnbull told reporters at Forbes in central western NSW on Sunday.

The deputy nationals leader, Bridget McKenzie, said it was not only farmers but the small businesses that service them which are doing it tough.

Giving funds to councils would help them provide relief in whatever way they deem best. “It’s about stimulating local economies and having a local approach,” she told Sky News on Sunday.

The government will also double the amount farmers can borrow in low-interest loans from $1m to $2m, which can be spent on fodder and water.



The total amount available for loans in any one year will also be doubled from $250m to $500m.

Turnbull also announced on Sunday that retired Major General Stephen Day will be national drought co-ordinator.

The former military officer will help bring together those working to help farmers, including not-for-profit organisations and farming groups, he said.

“It’s very important to bring all of our efforts across all the affected regions together,” the prime minister said.

The National Farmers’ Federation said it looked forward to working with Day.

The group has urged farmers to take advantage of any available assistance while they await relief from mother nature.

“At the end of the day, the only silver bullet is rain,” the president, Fiona Simson, said in a statement.

The latest funding announcement comes two weeks after Turnbull announced the federal government’s $190m relief package, which included extra payments as part of the Farm Household Allowance.

New figures show NSW’s crippling drought has hurt more than eight in 10 regional businesses across the state.

A survey by the NSW Business Chamber found 84% had been negatively impacted by the big dry – and about a third of those said the viability of their business was at risk due to the current conditions.

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Cash flow was also an issue for the vast majority of the 1,000 respondents, a number of whom indicated they may need to cut staff as a result.

“The impact on primary producers needs to be front of mind, however, the drought is also affecting regional businesses at all parts of the supply chain including retailers, manufacturers, construction, and tourism operators with revenue down across the board,” the chief executive, Stephen Cartwright, said in a statement.

The state’s peak business body has called for a number of targeted measures, including a drought-focused “business concierge service” to help connect non-farm business with government programs.

Meanwhile, the NSW government has teamed up with a not-for-profit group to help manage offers of help for farmers, their families and communities experiencing hardship as a result of the drought.

The Department of Primary Industries said the partnership will make sure donations coming in are matched with people who deserve it most.