AT A GLANCE

Adam Morton says: As the government tightens its belt the environment department is being hit the hardest, losing $130.6 million in funding next financial year. This is partly due to programs ending, partly due to declining funding for environment protection and climate change schemes. With the carbon tax due to start on July 1, funding for environment and climate policy development and delivery is down by more than a third. There is more than $100 million over four years to improve the health of ...

By InvestSMART · 2 May 2012

By InvestSMART ·
2 May 2012

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$179.3m funding for sustainable water management and urban water reform.

$13.7m for upgrades at Zoos Victoria sites.

Spending on environmental and climate change policy to be reduced by $77 million in part due to bushfire programs ending and activities being deferred due to increased rain and the introduction of the federal carbon tax.

Additional department savings of $139 million over four years from cuts to contractors, stocks and materials, staff training and development.

The threshold for gas and electricity concession payments to be adjusted so people are not compensated by the state for the increase in bills that will be offset by federal carbon tax compensation.

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Frequently Asked Questions about this Article…

What recent budget changes have affected the environment department's funding?

The environment department is facing cuts, losing $130.6 million in funding next financial year. Overall spending on environment and climate change policy has also been reduced, including a $77 million cut partly attributed to bushfire programs ending and some activities being deferred.

How does the upcoming federal carbon tax relate to environment funding cuts?

The federal carbon tax, due to start on July 1, is cited in the budget context: funding for environment and climate policy development and delivery is down by more than a third, and some reductions are linked to the introduction of the carbon tax which is changing timing and priorities for certain programs.

What specific water and river projects received funding in the budget?

The budget includes more than $100 million over four years to improve the health of rivers and waterways, plus $179.3 million allocated for sustainable water management and urban water reform.

Will any funding be provided to wildlife or zoo facilities?

Yes — the budget allocates $13.7 million for upgrades at Zoos Victoria sites to support facility improvements.

Where are the environment department's additional savings coming from?

The department is expected to deliver about $139 million in savings over four years through cuts to contractors, reduced stocks and materials, and lower spending on staff training and development.

How might the reduction in climate policy spending affect implementation of programs?

Spending on environmental and climate change policy is being scaled back — in part because some bushfire programs have ended and other activities were deferred due to increased rainfall and the carbon tax introduction — which could slow or postpone some program delivery and development.

What change is being made to gas and electricity concession payments, and who will it affect?

The threshold for state gas and electricity concession payments will be adjusted so recipients are not compensated by the state for bill increases that will be offset by federal carbon tax compensation. This affects households receiving concessions and aims to avoid double compensation for the same cost increase.

What should everyday investors watch for after these environmental funding adjustments?

Investors may want to monitor sectors tied to government environment spending — such as water infrastructure, environmental services and conservation projects — for shifts in contract opportunities and funding timing. Specific budget allocations (eg. river and water funding, Zoos Victoria upgrades) indicate where activity may continue despite broader cuts.