Drought-hit farmers will get another $333 million in federal support as part of an expanded package of measures designed to stimulate local economies.
Prime Minister Tony Abbott on Saturday announced the drought assistance package that aims to help whole communities, not just farmers.
"When the farmers have problems in farming communities, everyone has problems," Mr Abbott told reporters in Longreach on Saturday.
The package includes $35 million to boost economic activity in the towns and regions badly hit by drought.
The government has identified 20 of the worst-affected shires, which will each receive $1.5 million to kick-start projects.
Another $25 million will be targeted towards pest and weed management programs in drought-hit areas, while $20 million will fund mental health and counselling services for more struggling farm families.
The bulk of the funds will go to continue the provision of cheap loans to debt-laden farmers, with $250 million to be set aside for the drought concessional loan scheme in 2015-16.
Further drought support measures will be announced in the forthcoming agriculture white paper, it is understood.
The package is expected to be welcomed by coalition MPs and the rural sector. They have been strongly lobbying Mr Abbott to provide more drought relief.
Three-quarters of Queensland has been declared a drought area, and northwest and central-west NSW have been hit by below-average rainfall.
Australia's agriculture sector will contribute about $52 billion to the economy this financial year.
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