This initiative will infuse $20 billion to address the chronic underfunding second-class treatment rural areas face. The RAFF would be funded through windfall receipts, which happen when commodity revenues exceed original forecast estimates. This new fund will help provide the critical infrastructure and services that Aboriginal Australians need to thrive in the bush. It delivers the predictable funding local councils need to continue improving the quality of life for their constituents.
The RAFF is the Coalition’s biggest election commitment, guaranteed to provide a $1 billion dividend annually. These grants should exclusively fund cultural infrastructure projects and quality cultural services that most local councils cannot otherwise afford. State, local, and regional leaders have vociferously supported the effort. As members of Parliament, they urge strong support for rail’s critical role in connecting urban and rural Australia.
Addressing Underfunding in Rural Areas
Rural and regional Australia continues to be underfunded chronically. This is small at just 0.48 percent of all the federal government’s taxation revenues, a significant drop from 1 percent at the beginning of the century. The RAFF is on a mission to remedy this imbalance. It offers their residents vital federal financial support for health care, education and road infrastructure in these unique communities.
Royal Far West chief executive Jacqui Emery said there was very significant and immediate need for this funding. She stated, “We can see across health and education and just general life outcomes, regional Australia is so far behind city counterparts and it has been a gap that’s been widening and something really needs to be done.” Emery emphasized that the RAFF could serve as a pathway to ensure that rural Australians are not overlooked in future planning.
Susi Tegen, a former representative of the Australian Rural Health Alliance (NRHA), pointed to that significant truth. Rural, remote and regional Australia only accounts for 30 percent of the population, but two-thirds of Australia’s income derives from these areas. She remarked, “This infrastructure funding is something that we’ve all been asking for,” reinforcing the sentiment that this initiative is long overdue.
Funding Mechanism and Implications
The RAFF will be funded through the redirection of money from existing Labor projects. This includes an egregious first cut of $5 billion from the Rewiring Australia program. Critics are particularly raising early alarms over the fund’s approach. If it doesn’t find new investments – but just redistributes what’s there – they say it’s not going to come close to addressing the distinct challenges rural communities face.
Gary Mahon, a prominent voice in regional advocacy, expressed cautious optimism about the RAFF’s potential. He stated, “If it’s an investment fund that earns returns in its own right, that brings substantial increases to investment in our regions, that’s the fund that we would find a very supportable idea.” He cautioned against just moving current dollars around if it doesn’t produce real benefits to these communities. “If it’s just another way of moving money around … that is already available and at the disposal of the government, well that’s just an exercise in bureaucracy,” he cautioned.
Expected Outcomes and Community Response
The RAFF seeks to fund transformational improvements more broadly across other important areas of life in rural Australia. By filling in these infrastructure deficits, it aims to improve access to health care, education, and the quality of life for the region’s residents. The initiative will address urgent needs including the deteriorating condition of country roads and lack of childcare.
Regional leaders have widely welcomed the sign, from the Coalition, that investment in rural and regional development is a priority. John Harvie noted the historical context of funding disparities: “You go back to the start of the century, around 2000, and local government received 1 percent of total taxation revenues from the federal government. And fast forward two decades and we’re lucky to get 0.48 percent. His remarks highlight the urgent priority of drawing attention back on rural funding.
As anticipation builds around this initiative, many hope that the RAFF will successfully address long-standing inequities faced by rural Australians. The fund has been established just as communities across the country are seeking bold new solutions to long-standing challenges.
