Grain growers to be hit hardest under Albanese Government’s new biosecurity levy: Grain Producers Australia

Grain growers will pay an extra $1400 a year on average under the Albanese Government’s new biosecurity protection levy, with Grain Producers Australia calling for the “unfair” mechanism to be scrapped and existing levies overhauled. From July 2024, all producers in agriculture, forestry and fisheries will have to shell out an extra 10 per cent on top of what they were already paying in agricultural levies as of 2020-21. The measure will raise about $51 million a year to help pay for Federal Labor’s new “sustainable” biosecurity funding model, but GPA has raised concerns grain growers will be hit hardest — with the sector in danger of becoming “the cash cow and government ATM for national biosecurity”. “We first need to ask if our current levies can be invested better into biosecurity to optimise outcomes and protections, especially on preventative biosecurity, before adding another 10 per cent levy on growers,” GPA chief executive Colin Bettles told Countryman. “We’re highly sceptical of this new levy that’s being imposed by the Government, in the absence of growers being able to have their say, with legitimate oversight and controls over the levy funds being collected.” With 21,000 levy-paying grain producers nationwide, the average grower’s contribution will rise from about $13,600 per year to $15,000 according to calculations by GPA. Federal Agriculture Minister Murray Watt said producers would supply about 6 per cent of the total funding for biosecurity each year under the new model, while importers will pay 48 per cent and taxpayers 40 per cent. He described the 6 per cent contribution — which amounts to $47.5m a year — as “modest”, but GPA chair and Miling farmer Barry Large said there was “nothing shy” about the portion grain producers would have to foot. “Based on last year’s $28 billion crop, this added 10 per cent levy represents an increase of $28.56m for grain producers,” Mr Large said. “This means we’ll finance more than 60 per cent of the total $47.5m that’s set to be raised across all agricultural sectors. “At the new rate of 1.122pc (1.02 + 0.102), the total levies potentially collected from grains federally, based on the $28b crop, would be $314.16m. “In addition to these Federal levies, WA producers also pay for biosecurity at State level through the Grains, Seeds and Hay Industry Funding Scheme. “Before imposing another levy on grain producers, all other options and avenues need to be exhausted, with a clear value proposition attached.” Mr Large echoed recent comments by WAFarmers grains section president Mark Fowler, who said WA growers would have to pay a “disproportionate share of an already disproportionate share” of Federal grains levies. “This is because WA exports about half the nation’s grain and more levies are able to be captured, through these collection mechanisms,” Mr Large said. GPA has sought an “urgent” meeting with Senator Watt to clarify details of the new levy and address its impact on grain growers. “The levies already paid by Australian grain producers are part of longstanding partnership arrangements, with shared oversight for spending priorities and investments, working with the Grains Research and Development Corporation, Plant Health Australia and other stakeholders,” Mr Large said. “However, we don’t know how this new 10 per cent levy will work in maintaining the spirit and principles of those partnerships. The devil’s really in the detail of this proposal. “Especially whether this significant, not-so-modest contribution to be paid by grain producers will in fact help stop tiny hitchhiker pests such as Khapra beetle entering the country and creating a $15.5b hit on our industry, rural communities and the national economy. “Before imposing another 10 per cent levy on grain producers, the producers who actually pay these compulsory levies should be given a direct say on their levy-rates, and if more can be done to strengthen preventative biosecurity, to stop pests such as khapra entering the country.” Mr Large also questioned why the new levy was being introduced when a previously promised levy on imported shipping containers had been shelved. He said the container levy would have ensured risk creators were “making a more fair and equitable contribution to biosecurity costs and shared responsibility”. “This container levy should be resolved first, before another levy is placed on growers, otherwise the biosecurity protection levy is just another tax, generating funds for consolidated revenue,” he said. “Grain producers already contribute significantly to biosecurity protections, through our PHA levies, and unlike livestock industries, we’re already paying for emergency responses for various pests and diseases, including varroa and khapra beetle. “As it stands, we have no idea if the risk-creators will be paying equally to the costs of managing these pests and diseases, once they’re here, as growers already do, including in their individual businesses.” WAFarmers president John Hassell said the levy came as a surprise and was an “unfair added burden” on farmers. “It is a fairly modest increase, but it’s the concept that’s a bit hard to take when we’re not creating the risk, and we’re producing income for the country,” he said. “We’re being expected to shoulder extra burden; it doesn’t seem like the right thing to do.” WA Grains Group chair Alastair Falconer echoed Mr Hassell’s comments, saying farmers were already “paying our way”. “It’s another levy, and it’s (for) a problem not caused by us,” Mr Falconer said. York farmer Tony Seabrook, president of the Pastoralists and Graziers Association of WA, said the levy was another case of the Federal Government “hiving off responsibility”. “I suppose you could anticipate that a socialist government would do that,” he said. The Department of Agriculture, Fisheries and Forestry has promised to run a consultation process prior to introducing the biosecurity levy “to ensure that implementation is appropriate for industry”. Countryman put several questions to Senator Watt’s office and received a statement from a DAFF spokeswoman, who said GPA had “engaged directly with the department on the levy”. “The department expects to commence formal industry consultation, including with GPA, in June 2023 to finalise design details and associated administrative arrangements to implement the biosecurity protection levy,” the spokeswoman said. “This process will enable GPA to work through key issues with the department. “This will be a new levy with a separate policy intent and regulatory arrangements to that applying in relation to existing industry-led agricultural levies.”