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In response to unprecedented conditions
faced by farmers and affected businesses, the government introduced
drought response measures that directly targeted business
assistance. This included the municipal rate subsidy and rebate for
fixed water charges (water rebate) in 2005 and 2006
respectively.
Just over 48 per cent of funding has
been allocated to the water rebate and municipal rate subsidy
between 2005–06 and 2008–09. Both these schemes provide business
support to certain eligible categories of farmers. This audit
focused on these schemes, given their materiality. The balance of
funding is spread across approximately 50 other drought
programs.
The audit objective was to assess the
effectiveness of the water rebate and the municipal rate subsidy
measures in terms of how well these measures have achieved
objectives.
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