The Coalition Government will maximise long-term economic opportunities and job creation to secure Australia’s recovery, by expanding the nation’s resources sector and prioritising development of northern Australia.

Minister for Resources, Water and Northern Australia Keith Pitt said new measures in the 2021-22 Budget will build a more secure and resilient Australia, delivering jobs, opportunities and long-term benefits, particularly for regional Australia, as the economy recovers from the COVID-19 pandemic.

“The 2021-22 Budget locks in funding to accelerate the development of northern Australia, and to build a global resources strategy and network to strengthen a vital sector that continues to underpin our economic recovery and wellbeing,” Minister Pitt said.

“While rain and cooler weather have eased drought conditions across parts of eastern Australia, the Government continues to invest in practical measures to help farmers improve water infrastructure, and to reform water markets in the Murray–Darling Basin.”

Resources

In setting up Australia for the future, the Government will invest in a global strategy to highlight the quality, strength and reliability of Australia as a supplier of crucial resources and energy to the world while supporting companies to diversify and develop new markets.

Supporting our junior explorers will help the industry make the next big discoveries. The resources sector employs more than 260,000 people, with many of these jobs in regional Australia. More than a million Australians rely on the sector indirectly.

The 2021-22 Budget includes:

• $100 million in fiscal balance terms to extend the Junior Minerals Exploration Incentive for four years from 1 July 2021, to encourage exploration and development of new deposits and to ensure a strong investment pipeline for development across regional Australia;
• $20.1 million over two years to deliver a Global Resources Strategy, which will diversify and strengthen Australia’s access to key export markets, and reduce the risk of trade disruptions;
• Funding for the Rum Jungle Rehabilitation Project in the Northern Territory, supporting around 61 full time direct jobs over 11 years and creating significant indirect employment and local supply opportunities, including training, employment and other engagement opportunities for the site’s traditional owners; and
• New funding to implement the Government’s Strategic Basin Plans, including $15.7 million to support Gas Field Trials in the North Bowen and Galilee Basins, and $2.2 million for the Northern Land Council to help provide better services to Traditional Owners in the Beetaloo Basin.

Decommissioning levy

The 2021-22 Budget includes a temporary levy on offshore petroleum production to fund decommissioning and remediation works in the Laminaria-Corallina oilfields and associated infrastructure.

Minister Pitt said the levy was an important measure to ensure taxpayers aren’t footing the bill for the decommissioning and remediation of the oilfields, northwest of Darwin in the Timor Sea.

The Government will consult with industry over details of the levy’s administration, with further information to be announced following this consultation period.

The Government has previously announced an enhanced decommissioning framework, to make sure Australia has effective oversight and robust financial and accountability safety nets in relation to future offshore oil and gas decommissioning projects.