This proposal has two components that relate to not proceeding with the 2018-19 Mid-Year Economic and Fiscal Outlook measure Future Drought Fund – establishment.

Component 1 would maintain the Building Australia Fund, and would amend its target rate of return in line with the expected return of the Future Drought Fund. Consistent with the Building Australia Fund’s legislation, net unspent earnings would be reinvested each year so that they would be available for future, yet to be determined, projects.

Component 2 would provide $100 million per annum from 2020-21 to fund initiatives that enhance drought resilience, preparedness and response across Australia, rather than drawing down $100 million from the fund.

The proposal would have effect from 1 June 2019.