The rural health workforce is getting a much-needed $180 million boost, while billions will be spent on mobile connectivity and infrastructure improvements, under the Albanese government's commitment to regional Australia.
But in its first budget, Labor is also scrapping or deferring several dam projects promised by former Nationals leader Barnaby Joyce to save more than $4 billion.
After years of inquiries about the dire state of regional health, Labor will spend $185.3 million on a rural workforce package, including $74 million for incentive payments of $10,500 for doctors who work in country areas.
"This budget will address workforce shortages particularly beyond our capital cities, making new investments in preventive health and improving mental health support," Health Minister Mark Butler said on Tuesday.
The government will spend $5.4 billion over seven years for regional economic growth and development, in part targeting emerging industries in Western Australia's Pilbara region, the NSW Hunter and central Queensland.
The funding will include the previously announced $1 billion for community and infrastructure grants, which will replace the scrapped Building Better Regions program.
The budget papers reveal the coalition did not meet a 2019 target to complete 70 per cent or more of its funded community projects, with 56 per cent finalised.
Regional connectivity and resilience will be bolstered by $757.7 million over five years, with $400 million to improve highway mobile coverage and $40 million for a program to address black spots.
Regional Development Minister Catherine King said Labor's spending will strengthen the future of regions.
"This budget honours our election commitments and ensures our policies and expenditure are focused on productive investments in regional communities, delivered transparently and fairly."
It is spending $62.6 million on energy efficiency grants for small businesses, along with $15.1 million to extend mental health and financial counselling programs for business owners.
Labor will provide $12 million over four years for community legal centres in NSW and Queensland to support bushfire and flood victims, while it spends a total of $51.5 million to support regions hit by natural disasters.
The government says it has found $4.6 billion in savings over 12 years from the National Water Grid Fund.
It will not proceed with the Hells Gates Dam project in Queensland, which was funded by Mr Joyce in the March budget pending regulatory approvals.
Labor is also deferring $899.5 million over four years on water infrastructure like the Dungowan Dam and pipeline, near Tamworth in NSW, and the Wyangala Dam wall raising in the state's central west.
It will likely aggravate irrigators' groups in flood-affected areas who have been calling for better water infrastructure to manage natural disasters.
Senior Nationals have been warning for weeks the budget will "rip the guts out" of the regions.
There has been speculation Mr Joyce's regional funding - which was part of a deal with the Liberals on net zero emissions targets - would be a major target in Labor's budget audit.
Ms King said the government wants its investment to be of value to communities and to improve the liveability of the regions.
"No one will be held back, no one left behind."
