Bushfire-hit landowners sharing a boundary with public land will now be able to access assistance to repair destroyed fences as bushfire clean-up efforts continue.
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Concerns were raised earlier this year over legislation exempting Crown-owned land from sharing the cost of boundary fences, leaving fire-hit farmers to rebuild on their own.
The Forestry Corporation previously ruled out making a "goodwill gesture" due to the scale of the damage to its neighbours, with farmers encouraged to seek assistance from volunteer organisation BlazeAid.
However, deputy premier John Barilaro announced on Sunday up to $209 million had been allocated to help cover the cost of rebuilding boundary fences as part of the $2.3 billion COVID-19 stimulus package.
"Under this package, we will provide up to $5,000 per kilometre for the purchase of materials to rebuild existing fences adjoining public lands damaged by the summer fires, which will go a long way to helping farmers cover the cost," Mr Barilaro said.
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Landholders who have already rebuilt boundary fences will be eligible for retrospective funding under the program.
Mr Barilaro said the funds provided an opportunity for farmers to engage local contractors at a time when many local businesses are struggling.
"This is about helping bushfire-affected communities get back on their feet and so we are doing everything we can to make sure that happens," he said.
Agriculture minister Adam Marshall said the decision was in response to community feedback.
"We know this has been a major issue for fire-affected farmers and we've listened to those concerns," Mr Marshall said.
"We will have dedicated boundary fence coordinators working with farmers to identify their needs and negotiate with the public land managers to ensure money gets into farmers' pockets as soon as possible."