Industry groups have welcomed the scrapping of the federal government’s proposed biosecurity levy
The federal government has announced it will scrap a controversial levy which would have put a portion of biosecurity costs on to producers.
The Biosecurity Protection Levy was announced in the 2023–24 budget and would have been paid by Australian producers, meaning about six per cent of the nation’s total biosecurity funding would have come from producers.
Originally planned to begin on July 1 last year, it failed to win wider political support and it was officially scrapped earlier this month.
“We are listening to farmers and to the experts as we protect our environment and economy from the biosecurity threats of today and tomorrow,” federal agriculture minister Julie Collins says.
“The Albanese Labor government will continue to work with farmers and stakeholders so producers are involved in the policy solutions that protect their livelihoods.”
The news was welcomed by a number of agricultural industry groups including the National Farmers Federation, Grain Producers Australia and AUSVEG.
NFF president David Jochinke describes the levy’s axing as a “huge win for farmers” and says it was “deeply flawed and unfair to farmers”.
“We appreciate the minister’s ongoing commitment to ensuring the sustainability of our biosecurity system,” he says.
“I also tip my hat to our members, industry stakeholders and the thousands of farmers who voiced their concerns about this tax.
“Together we put up a fierce fight and we are relieved to close the book on this idea.
“The agricultural sector was united in its opposition to this tax and we are just as united in our commitment to protecting our country’s biosecurity.
“Farmers already contribute significantly to the system, and we look forward to working with the government on policy that strengthens our defence against pests and diseases without adding extra costs on farmers.”
Another group which has welcomed the levy’s scrapping is AUSVEG, which is the peak industry body for Australia’s vegetable industry.
AUSVEG CEO Michael Coote says the additional cost would have been a significant challenge for an industry which is already experiencing major cost pressures, but also reiterated the importance of maintaining strong biosecurity.
“At a time when Australian vegetable growing businesses are experiencing extreme margin squeeze that is threatening the viability of many, the last thing growers needed was the imposition of another cost that they would have had little capacity to pass on,” he says.
“A strong biosecurity system is critical to the long-term viability of Australia’s vegetable industry, and AUSVEG looks forward to ongoing engagement with the government, and all with a stake in Australia’s food future, to ensure that system is fair and fit-for-purpose.”
In late 2023, Grains Producers Australia coordinated a letter which was joint signed by 50 agricultural representative groups and sent to the prime minister, treasurer and the then-agriculture manager.
GPA analysis also found the grains industry would have paid about $30 million of the proposed $50 million, which would have been raised annually by the levy.
GPA chair Barry Large says he is thankful for members of parliament who listened to the concerns of farmers, particularly around how the revenue would have been used.
“From the outset GPA was concerned at the lack of transparency and accountability on how funds to be raised from the biosecurity tax would actually be spent, and if this revenue would actually improve biosecurity protections,” he says.
“There was also a serious lack of consultation during the policy design process, which led to its fundamental design flaws – and that’s why it ultimately failed to win the support needed, to pass parliament.”