Australian farmers are warning the federal Labor government that its decision to ignore the agriculture sector’s suggestions and increase taxes on domestic producers will boost the price of food and push the cost of living even higher.
The federal government proposed, in its budget, released on May 9, a new 10 percent levy on all domestic agricultural, fisheries, and forestry producers to fund the cost of a new biosecurity system.
That means that farmers of beef (grass-fed) are looking at paying an extra 50 cents per head of cattle, while a prawn farmer an extra 67 cents per kilogram of whole-farmed prawns. An egg farmer would pay an extra 3.25 cents per bird, and a honey producer would pay just under 5 cents per kilogram.
Cotton producers would pay the government an extra 22.5 cents per 227-kilogram bale, and domestic apple producers just under 19 cents per kilo of apples. A forestry grower producing softwood would be taxed an extra 1.05 cents per cubic metre.
Farmers’ Suggestions Ignored
The budget plan does nothing to address rampant food price inflation, which is weighing on the minds of eight in 10 Australians, says Fiona Simson, president of the National Farmers’ Federation (NFF).“We know that Australians are feeling the pinch of their weekly shop. This budget ignores practical solutions that could have provided a double-whammy of price relief for households and a stronger, more vibrant agriculture sector,” Simson said on May 9.
“Right along the supply chain, the businesses which grow, process, and transport our food and fibre are under immense pressure.
“Whether it’s workforce shortages, damaged roads, or the cost of capital upgrades—there are issues that need urgent attention if we want to achieve price relief for consumers,” she said.
“Sadly, tonight’s budget fails to act on these in any meaningful way.”
The federal government’s surprise raid on farmers’ hip pockets to help fund the increase in biosecurity efforts is a bitter pill for the agriculture sector, Simson said.
“The move to have farmers foot the bill is a bitter pill to swallow. We’re already significant financial contributors,” she said.
“What’s more, we bear the cost of managing historical pest and disease incursions and face the enormous threats posed by pests and diseases on our doorstep.”
She said the sector had been hoping that importers would also be contributing to the scheme, given they were the risk creators in the system.
New Levies the Equivalent of New Food Tax
National Party leader David Littleproud echoed Simson’s sentiment on the biosecurity levy, saying it’s shocking that the federal government would introduce what essentially would become a new food tax on Australians.He told The Epoch Times that he believed the new levies could ultimately lead to Australians experiencing food insecurity.
“Labor’s new tax on farmers, right in the middle of a cost-of-living crisis, will harm the agriculture industry and increase the cost of food for everyone,” Littleproud said.
“It defies logic that the federal government would tax Australian farmers to pay for the biosecurity costs of its international competitors to import their products here.”
In a media statement, the National’s leader noted that the former Morrison government had “proposed a cost recovery model that importers would pay commensurate to the risk provided, rather than farmers and the model was ready for implementation before the end of last year.”
Additionally, the increase will be compounded by the federal government’s decision to introduce a six percent levy on transport operators that would compound each year, Littleproud said.
“That will add to grocery bills for families because transport companies can’t absorb that cost.
