Posted inFeature, Federal Politics, Local News

“Defund Regional Australia”: North Coast MPs respond to the Budget

North Coast MPs have launched a fierce attack on the Federal Budget, accusing the Albanese Government of abandoning regional Australia and stripping funding from infrastructure, communications, water security and health services across the region.

Federal Member for Lyne Alison Penfold described the 2026-27 Budget as “the worst budget that I’ve ever seen”, warning communities from the Hunter to the Hastings had been left behind.

“Budgets can make or break the ability of our region to thrive, and this Budget lets us down big time,” Ms Penfold said.

“Labor has ignored our needs as one of the oldest electorates in the country.”

Ms Penfold said key regional priorities raised in her pre-budget submission had been ignored, including funding for Pacific Highway upgrades, regional health services and telecommunications infrastructure.

“In terms of local services and infrastructure, there is no funding for the roads and grade-separated interchanges on the Pacific Highway which our communities need,” she said.

“They have stripped $21.4 million from regional telecommunications funding making the challenge of addressing mobile and internet blackspots even harder.”

She also criticised a $103 million reduction to the National Water Grid fund, saying it undermined the potential for MidCoast Council’s Kiwarrak Off-River Water Storage Project to secure the Manning region’s long-term water supply.

Health funding was another major point of contention, with Ms Penfold condemning the absence of funding for an Urgent Care Clinic in Taree.

“In a funding commitment of $1.8 billion for Urgent Care Clinics, there is no funding for one in Taree despite the clear case that has been presented to them over the past 12 months,” she said.

“There is a pittance for aged care which won’t even scratch the sides of the Support at Home Waitlist, or address provider and workforce shortages in the regions.”

The criticism was echoed further north by Federal Member for Cowper Pat Conaghan, who said regional Australia was paying the price for the government’s savings measures.

“While proclaiming to take pressure off Aussie families and lift living standards, in reality you are taxing aspiration, lifting the ladder from young would-be investors and pouring an irresponsible level of migrants into our already overstretched networks from housing to health and everything in between,” Mr Conaghan said.

Mr Conaghan highlighted cuts of $4.7 billion to infrastructure spending, $103 million from the National Water Grid, $191.6 million from pest, disease and drought programs, and $21.4 million from regional communications funding.

“Infrastructure and communications funding are literal lifelines for my communities, and seeing them brutalised by this Government shows the true lack of care they hold for my electorate of Cowper,” he said.

Mr Conaghan said residents across the North Coast consistently raised three major issues with him.

“Fix the bloody roads,” he said.

“Fix the dodgy mobile reception.”

“We need better infrastructure.”

“None of those made Labor’s list.”

Federal Member for Page Kevin Hogan also joined the criticism, saying the Budget confirmed Australians were “going backwards” under the Albanese Government.

“Australians are paying more, working harder, and falling further behind under the Albanese Government,” Mr Hogan said.

“This Budget is delivering higher taxes, more spending, more debt, and no plan to restore living standards.”

Mr Hogan claimed Labor had become “the highest taxing Government in Australia’s history” and said rising interest rates and housing pressures were continuing to hurt families across regional Australia.

“The average Aussie mortgage is over $20,000 a year worse off while they already can’t afford to pay their grocery and energy bills,” he said.

“Labor’s budget states that 35,000 less homes will be built and rents are going to increase.”

Opposition MPs across the North Coast also used the Budget response to promote Coalition alternatives unveiled in Opposition Leader Angus Taylor’s Budget Reply speech.

Among the Coalition measures backed by North Coast MPs were a proposed Tax Back Guarantee indexing tax brackets to inflation, a permanent $50,000 instant asset write-off for small businesses, migration caps linked to housing supply, and a Future Generations Fund aimed at paying down debt and investing in infrastructure.

“We are getting rid of the inflation tax on peoples wages,” Ms Penfold said.

“This is about fairness, aspiration and letting hard working Australians keep more of what they earn.”

Ms Penfold did acknowledge some measures in the Budget aligned with her own pre-budget priorities, including funding for enabling infrastructure for housing, another round of the Stronger Communities Program and continued support for the Local Sporting Champions program.

However, she said those measures were overshadowed by wider cuts to regional programs and infrastructure.

“A few small positives do not excuse a Budget that has fundamentally forgotten communities from the Hunter to the Hastings,” she said.

“Labor has essentially made the decision to defund Regional Australia.”


Got something you want to say about this story? Have your say on our opinion and comment hub, North Coast Times Engage