Labor will attempt to fill a diplomatic "vacuum" in the Pacific with a spending spree aimed at wooing Australia's neighbours, as Foreign Minister Penny Wong warns Australia is playing diplomatic "catch up".
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The government will also open the door for up to 3000 permanent migrants from Pacific Islands nations and Timor-Leste annually, as it looks to plug worker shortfalls brought on by the COVID-19 pandemic.
The federal budget, to be delivered by Treasurer Jim Chalmers on Tuesday, will allocate more than a $1 billion over the next four years towards supporting Australia's allies in the region.
Senator Wong says Labor's first budget will reflect Australia's shifting international priorities, declaring it had "hit the ground running" to restore its deteriorating sway in its orbit.
Australia's relationship with its neighbours has been under a cloud in recent years, amid criticism from Pacific leaders over its inaction on climate change, and a growing Chinese influence.
![The budget will include a major outlay on the Pacific. Picture by Elesa Kurtz The budget will include a major outlay on the Pacific. Picture by Elesa Kurtz](/images/transform/v1/crop/frm/139890989/0ac338a9-5759-4fc1-9dc7-7f9f19a8f971.jpg/r0_66_4967_2859_w1200_h678_fmax.jpg)
The budget will include $900 million over four years from 2022-23, building on the $525 million committed to the Overseas Development Assistance program at the May election.
And after Solomon Islands and China tightened their relationship by signing a security pact last year, sparking alarm in Canberra, nearly $140 million will be allocated to the country.
That outlay will fund a mixture of hard and soft power, supporting Australian Defence Force and Australian Border Force presences in Solomon Islands, while also boosting ABC broadcasting in the region.
Timor-Leste, which earlier this year said it could work with China over a proposed gas pipeline, was also in line to receive $500 million over the next decade, split between infrastructure development and boosts to risk management capabilities.
Senator Wong described the imminent budget as a "major step" towards restoring Australian influence in the region, saying Labor was working to ensure it was its regional allies' partner of choice on security.
![Solomon Islands Prime Minister Manasseh Sogavare meeting with Anthony Albanese earlier this year. Picture Getty Images Solomon Islands Prime Minister Manasseh Sogavare meeting with Anthony Albanese earlier this year. Picture Getty Images](/images/transform/v1/crop/frm/139890989/b19225b4-157a-4928-8986-5d70aa8b3d25.jpg/r0_0_3333_5000_w1200_h678_fmax.jpg)
Senator Wong implied the Coalition had vacated the stage, opening the door for Beijing.
"Over nine wasted years, the Liberals and Nationals slashed Australia's development assistance, reduced our influence and left a vacuum for others to fill," she said.
"Now we have a lot of catching up to do ... Our assistance will help our regional partners become more economically resilient, develop critical infrastructure and provide their own security so they have less need to call on others."
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The Department of Foreign Affairs and Trade will also receive additional funding, to be clarified in the budget, to support the development of economic sectors in the region.
![Jim Chalmers is set to deliver his first budget. Picture by Sitthixay Ditthavong Jim Chalmers is set to deliver his first budget. Picture by Sitthixay Ditthavong](/images/transform/v1/crop/frm/139890989/2cb45a89-8cc7-48c4-84e0-fae5fc1a2ece.jpg/r0_433_6500_4102_w1200_h678_fmax.jpg)
Projects will include the construction of airport-related infrastructure in Fiji, along with maintaining the country's major bridges and roads.
Minister for International Development and the Pacific Pat Conroy accused the Coalition of "dropping the ball".
"[This package] will advance Australia's interests by tackling poverty and supporting stability, prosperity and security in our region," he said.
"And by improving and expanding Pacific labour mobility we will support Australian employers facing skills shortages and Pacific economies still struggling with the aftermath of COVID."
An additional $470 million will also be allocated to ODA support to Asia, which will include a new office of Southeast Asia within DFAT.