Controversial tax axed following widespread opposition from industry
Australia’s fresh produce and wider agriculture industry has welcomed the Australian government’s decision to withdraw a proposed Biosecurity Protection Levy.
Industry bodies from across the sector have voiced their opposition to the biosecurity tax since it was first proposed as part of the 2023/24 budget. The legislation had been in front of the Senate but it voted to discharge the bill on 12 February.
While industry has celebrated the move, it also highlighted the need to secure ongoing funding for biosecurity and called for a more sustainable approach from government.
Ausveg chief executive Michael Coote said the discharging of the Biosecurity Protection Levy legislation would come as a relief for vegetable growers, and was a victory for the industry’s advocacy efforts, as well as common sense.
“We welcome the government, agriculture minister Julie Collins and Senate hearing the concerns raised by the vegetable and wider agricultural industry, and discharging the biosecurity tax,” said Coote.
“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.
“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.”
Australian Fresh Produce Alliance (AFPA) chief executive Claire McClelland said the fresh produce industry already contributed to biosecurity funding through existing levies.
“The government’s decision to remove this legislation demonstrates an understanding that the biosecurity system benefits all Australians and that creating further cost to farmers doesn’t support improved outcomes for Australian consumers,” said McClelland.
“Industry already contributes to the biosecurity ecosystem through financial contributions and farm practices that support effective biosecurity management. It’s positive that minister Collins has heard and actioned this feedback from farmers and removed a policy that would place an additional financial impost on industry, particularly during a time of escalating production costs and diminishing returns for fresh produce growers.”
National Farmers’ Federation president David Jochinke welcomed the decision and thanked the minister for agriculture, Julie Collins, for listening to farmers’ concerns.
“This is a huge win for farmers. The minister and the Senate have listened – this tax was deeply flawed and unfair to farmers. We appreciate the minister’s ongoing commitment to ensuring the sustainability of our biosecurity system,” said Jochinke.
“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.”
