Australia's regions will benefit from funding to bolster fuel supplies and public hospitals, but investment in rural health reform, better connectivity and safer country roads continues to fall short, according to industry groups.
The federal budget confirmed a $10 billion immediate measure to establish a fuel and fertiliser security facility, boosting diesel and jet fuel reserves and creating a buffer for future crises.
An extra $25 billion for public hospitals was also confirmed, with federal funding for state-run facilities to reach a record $220 billion in the five years to 2031.
While those measures were welcomed by farming groups and rural organisations, investment in critical areas of health, telecommunications and key infrastructure was considered lacking.
Permanent funding for 137 Medicare Urgent Care Clinics may not be the best investment for the 7.4 million Australians living outside the cities, rural health organisations warned.
Rural doctors groups said the clinics have not been established in small towns, risking further fragmentation of the health system.
"Rural areas also need ongoing primary care alongside urgent care," National Rural Health Alliance chief executive Susi Tegen said in a statement.
"One-off access without continuity is a limited health strategy."
The National Farmers' Federation reiterated its support for the fuel and fertiliser package, which will ease pressure on farmers and improve food and fibre supply chains.
It also welcomed primary production income being exempt from the new 30 per cent trust tax, as trusts are key to small farming businesses.
But the federation raised concerns about the defunct northern stretch of the Inland Rail project and the end of the Regional Tech Hub.
Funding for the hub, which helped 75 rural people navigate phone and internet access every day in 2025, was not renewed beyond June.
"Without continued support for this service, regional Australians may lose a trusted service that has helped thousands navigate major technology changes and stay connected," the federation's president Hamish McIntyre said.
Despite $40 billion slated for national roads over the next five years, rural livestock routes and ageing bridges did not get much of a look-in, Australian Livestock and Rural Transporters Association national president Gerard Johnson said.
"They are part of the national freight network and need to be funded that way," Mr Johnson said.
