On-farm Drought Infrastructure Rebate Scheme

Purpose and Program Overview

The On-farm Drought Infrastructure Rebate Scheme in South Australia is a government initiative. It helps primary producers manage current drought conditions. It also strengthens future drought preparedness. The program provides financial rebates for investments in drought resilience infrastructure. This helps farmers and agricultural businesses improve water security, feed storage, stock containment, and other drought-related infrastructure. These are important for sustaining operations during dry periods. The Department of Primary Industries and Regions South Australia (PIRSA) manages this scheme.

This scheme has a total funding pool of $5 million. It assists up to around 1,000 farms. Rebates are available for up to $20,000 (GST exclusive). This grant scheme helps South Australia’s agricultural sector by reducing operational risks from drought. It also encourages sustainable farm practices and improves the resilience and productivity of primary producers across the state. The funding for this scheme has also seen additional allocation as part of the broader Drought Support Package in South Australia.

The rebate scheme adds to state and national efforts to deal with climate variability impacts on agriculture. It promotes new ideas, efficient resource use, and long-term sustainability in farming.

Key Grant Details

• Grant amount:
  • Tier 1: 75% rebate, up to $5,000 (GST exclusive). This tier is more favourable for project costs of $10,000 or less.
  • Tier 2: 50% rebate, up to $20,000 (GST exclusive). This tier is more favourable for project costs over $10,000.
  • The maximum funding accessible across both tiers is $20,000 (GST exclusive) per applicant.
• Application open: Open since late 2024 (infrastructure purchased or installed on or after 26 November 2024).
• Application close: 31 January 2026.
• Eligible industries/business types: Primary producers in South Australia. This includes property owners, share farmers, and lessees. Commercial apiarists managing at least 50 hives are also eligible. All must be registered as primary producers with an ABN.
• Co-contributions: Required. Applicants must contribute a minimum of 25% of the costs for Tier 1 projects. For Tier 2, a minimum of 50% of the costs is required. This co-contribution cannot include funds from insurance, other government grants, or concessional loans.
• Location/state/territory applicability: South Australia only. Infrastructure must be installed on properties in South Australia.

Priority Sectors

The On-farm Drought Infrastructure Rebate Scheme is open broadly to primary producers across all agricultural sectors in South Australia. It focuses on drought resilience improvements. These are relevant to livestock, cropping, horticulture, and apiculture. Eligible infrastructure investments include water systems (e.g., pipes, pumps, tanks, troughs), feed and fodder storage (e.g., silos, hay sheds), stock containment (e.g., fencing, yards), and technologies that directly support drought management and preparedness (e.g., soil moisture monitors, weather stations, remote water monitoring).

Funding Scope

The scheme has two funding tiers:

• Tier 1: Supports smaller projects. Offers a 75% rebate for grants up to $5,000.
• Tier 2: Supports larger projects. Offers a 50% rebate for grants up to $20,000.

Categories/streams of eligible activities:

• Purchase and installation or upgrade of new or existing drought infrastructure. This includes:
  • Water management systems: Efficient water systems for irrigation and livestock (e.g., pumps, pipes, tanks, troughs, bores, desalination plants, leak detection units, dam covers).
  • Feed systems: Feed pads and feed troughs to reduce the impacts of drought, such as erosion.
  • Stock containment areas: Setting up or improving stock containment.
  • Technology upgrades: Soil moisture monitors, weather stations, remote water level sensors, automated irrigation, and remote pump controls.
  • Property improvements: Internal fencing, laneway upgrades.
• Labour costs for external contractors involved in the installation, repair, or replacement of eligible infrastructure.

Project timeline: Eligible infrastructure must be purchased and installed on or after 26 November 2024. Pre-approved activities must be completed within six months of written pre-approval.

Grant Amount in Total

A total funding pool of $5 million is allocated to the scheme. This funding is part of a larger state drought support package.

Eligibility Criteria

To apply for this rebate, you must meet the following:

• Be a property owner, share-farmer, or lessee in the primary production industry in South Australia.
• Be a commercial apiarist managing at least 50 hives (if applicable).
• Your business must meet the Australian Taxation Office’s definition of a Primary Production Business.
• Have a valid Australian Business Number (ABN) that was registered as of 26 November 2024.
• Be registered for Goods and Services Tax (GST).
• Earn over 50% of your gross income from your primary production business under normal seasonal circumstances. Alternatively, if you commenced farming within the last 12 months, you must expect to derive 50% of your gross income from primary production within three years from the application date. New entrants’ eligibility is considered on a case-by-case basis.
• The infrastructure must be purchased and installed new, or existing infrastructure repaired/replaced, on or after 26 November 2024.
• The drought infrastructure must be installed on your property to improve drought management and preparedness.
• You must not have received funding for the same activities from another South Australian or Australian Government program.
• You must contribute a minimum of 25% of the costs for Tier 1 applications and 50% for Tier 2 applications. This contribution cannot include funds from insurance, other government grants, or concessional loans.

Eligible Activities and Expenses

• Purchase and installation or upgrade of water infrastructure for livestock and irrigation, including: pipes, water storage devices (tanks, troughs), pumps, de-silting of existing dams (where no groundwater access), drilling new stock groundwater bores and associated power supply.
• Stock containment facilities, such as fencing or yards.
• Feed and fodder storage improvements, including silos, hay sheds, silage bunkers, and feeding system upgrades (e.g., feed pads, feed troughs).
• Technology systems for drought resilience and efficiency, such as soil moisture monitors, weather stations, telemetry sensors, automated irrigation systems, remote water monitoring and pump control.
• Labour costs for external contractors engaged in the installation, repair, or upgrade of eligible infrastructure.
• Excluded expenses: Vehicle purchases, wages for own labour (unless explicitly approved for specific works where external contractors are not practical), fodder carting, general repairs not related to drought resilience, routine machinery replacements. Costs associated with crop or fodder (non-perennial) irrigation/watering (unless for permanent horticultural plantings), statutory obligations (e.g., GAB bore capping), ongoing operation/maintenance costs, staff salaries, project planning/management, production costs, or projects that have already received funding for the same activities from other government programs.

Assessment Process

This is a competitive, merit-based assessment. Applications are processed on a first-in, first-served basis until funding is exhausted.

• Evaluation: Applications are assessed for eligibility, project relevance to drought resilience, and robustness of application details.
• Pre-approval: Applicants can seek pre-approval for eligible activities for which costs have not yet been incurred. This provides certainty of funding. Pre-approved activities must be completed within six months.
• Top-up funding: Tier 1 applicants who applied before 17 April 2025 and provided all required evidence are automatically assessed for eligibility for up to the maximum $20,000 available under the program. They do not need to reapply if their existing application includes activities meeting expanded criteria for the higher amount. A new application is only needed if additional expenditure not previously provided is to be claimed.
• Payment: Payments are generally made at the time of approval for eligible completed activities. Pre-approved applicants receive payment upon completion of the work and submission of proof of payment.

Recent Program Updates

Applications opened following the launch in late 2024. They will be accepted until 31 January 2026. Tier 1 applicants who applied before 17 April 2025 can have their applications reassessed for potential top-up funding under Tier 2, up to the $20,000 maximum. Prepayment options became available from 17 April 2025 for eligible activities not yet incurred. There is a strong focus on supporting South Australian farmers through current drought conditions, with improved stakeholder engagement and support services available through PIRSA.

Application Tips

• Confirm eligibility criteria carefully. This includes income from primary production and ABN/GST registration.
• Prepare thorough documentation. This means tax invoices for eligible purchases and clear photos or other proof of installation. For pre-approval, provide detailed quotes.
• Plan and budget for the required co-contributions. Remember, these cannot come from other government funding or insurance claims.
• Consider applying early to secure funding availability and access to possible prepayment options. Incomplete applications will delay processing.
• Engage with PIRSA resources for guidance. Complete all application steps accurately via the myPIRSA portal.
• Understand which tier is most beneficial for your planned expenditure. Tier 1 is better for costs up to $10,000, while Tier 2 is better for costs above $10,000, even if the total grant is less than $20,000.
• Ensure the infrastructure clearly improves drought management and preparedness on your property.

Where to Get Help

Consider consulting with a professional grant specialist like Pattens Group. We offer initial assessments to review your eligibility and help align your application with program objectives. Additional information and application materials can be accessed via the PIRSA website