Regional Australia will receive a further $135 million in next week’s Federal budget to help improve the performance of the economy with a big portion of the budget going to areas largely affected by the COVID-19 pandemic and last summer’s bushfires.
The funding will be announced by Deputy Prime Minister Michael McCormack on Wednesday in a Pre-budget speech to the Regional Australia Institute.
A $100 million for new Regional Recovery Partnerships, $30 million for the Regional Connectivity Program and $5 million for a new Resilient Leaders initiative will also be included in the funding announcements.
The total amount of regional support funding announced in the past week comes to $385 million.
The aim of the Regional Recovery Partnerships program is to support areas that are affected by the drought, bushfires and health crisis.
The regions include the Snowy Mountains, Hunter and Newcastle and Parkes region in New South Wales, Cairns and Tropical North Queensland, Gladstone and Mackay-Isaac-Whitsunday Regions in Queensland, all of Tasmania, Gippsland Region in Victoria, Kangaroo Island in South Australia and Western Australia’s South West region.
The Regional Connectivity Program will focus more on the improvement of communication links in regional and remote Australia while the Resilient Regional Leaders Initiative aims to support strong local people to develop their leadership skills.
Mr. McCormack said helping the regions recover and thrive would help boost Australia’s economic recovery.
“I’m excited by our regions, excited by their prospects, excited about what we are all – together – doing to overcome the challenges of today and build a better tomorrow,” he said.
“Regional Recovery Partnerships will deliver this $100 million funding over two years to co-ordinate investments with other levels of government to support recovery and growth in the regions.”
“These partnerships will support existing regional plans by developing a package of targeted initiatives to deliver jobs, economic recovery and economic diversification.”
“Today’s announcement builds on the Government’s recent $250 million injection into regional Australia, which will encourage more Australians to travel and experience a homegrown holiday, boosting regional jobs and local economies.”
In the daily charts of AUD/USD, the pair opened at 0.7127 Wednesday on Sydney session.
Since the opening on Monday, the Aussie dollar has been bagging gains completely bouncing off from the support level at 0.70157. The pair has been supported by the measures given by the Fed to fight the ongoing pandemic and has given recovery options for the ongoing recession in Australia to boost its economic outlook.
Meanwhile, the U.S. dollar is threading lower ahead of the U.S. Presidential debate. The safe-haven status of the dollar has been affected by this factor and the re-surging of a second wave of COVID-19 in the U.S.
However, speculations of the dollar going lower may be short-lived and investors confidence may be restored depending on the outcome of the debates and the release of GDP Growth Rate Q2 will be released later in the day.
As we can see in the charts, the price is still inside the range of support at 0.70157 and resistance at 0.71489. Aussie bears steady their positions upon the phase 2 of this pair with hopes of the price breaking down from the support level to further confirm their position.
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