$5b drought fund plan passes first hurdle

Draft laws to store up to $5 billion for a new fund to help farmers with future droughts has passed the first green light of parliament, but with amendments to increase accountability and transparency.

Independent Victorian MP Cathy McGowan introduced the changes to the bill on Thursday, which makes the minister accountable to parliament over how the money is spent.

Labor opposed the proposal as they believe it should be budgeted outright rather than be manoeuvred from the Building Australia Fund, which the opposition says will prevent money going towards regional development.