Submissions highlight overwhelming opposition to Albanese Govt’s biosecurity protection levy

Farmers have formed a nationwide united front against an “unfair” biosecurity levy set to be introduced in July, with industry leaders across Australia’s $84.9 billion agriculture sector condemning the “flawed” tax.

The overwhelming opposition was laid bare in an avalanche of submissions to the Department of Agriculture, Fisheries and Forestry published this month.

Farm organisations from every State and Territory rubbished the new levy, along with a slew of national lobby groups representing the grains, livestock, horticulture, forestry and fisheries industries.

Common complaints included a complete lack of consultation, lack of transparency over how the funds would be spent, and claims producers were being unfairly slugged.

A submission from WAFarmers noted the group’s 1000 members already made a “significant contribution” to biosecurity funding through livestock and grains levies that totalled $5.2m at the State level alone.

At the Federal level, farmers nationwide were estimated to contribute $440m in annual levy payments.

“WA grain growers already pay a disproportionate share of Federal grain levies because we export about half of Australia’s grain and do not get back a corresponding share of levy services,” WAFarmers president John Hassell said.

“The Federal Government has not consulted or been transparent with producers and industry in building a case for producers to shoulder an additional burden towards biosecurity funding when they are not the key point of risk.”

The levy was announced in May as part of the Albanese Government’s revamped biosecurity funding model — designed to raise $153m annually to protect the agriculture sector from pests and diseases.

Producers will contribute a “modest” 6 per cent of funding according to the Government, while importers will contribute 48 per cent and taxpayers about 44 per cent.

The levy itself will raise about $47m annually, with producers across the board set to shell out an extra 10 per cent on top of what they already pay in agricultural levies.

“Of the $47m to be raised from the new proposed levy, the grains industry will pay approximately $20m,” Mr Hassell said.

“This does not fairly reflect the composition of Australian agriculture, nor is it reflective of where the risk lies. WA grain growers will be paying a disproportionate share of an already very disproportionate share.”

The Pastoralists and Graziers Association’s submission argued the new levy would “unfairly tax primary producers for services they already pay for”.

“The introduction of a new Federal-based levy will . . . duplicate the biosecurity services they already pay for under existing Commonwealth levies which are distributed to various rural research and development corporations,” PGA president Tony Seabrook said.

“According to a recent analysis by accounting firm RSM International, existing levies represent 12 per cent to 15 per cent of a farmer’s profit.”

The National Farmers’ Federation and Grain Producers Australia also slammed the levy, with both renewing calls for a levy on containers entering the country.

GPA chairman Barry Large said the sheer volume of negative feedback demonstrated “a rare form of collective strength and solidarity of views” across the agriculture sector.

“Farm representatives have consistently objected to this flawed policy proposal — be it grains, livestock, horticulture, seafood or forestry,” he said.

“Producers who already do the heavy lifting on biosecurity will be further penalised due to the inequities of a flawed taxation proposal that’s merely a glorified cost-shifting mechanism.”

Mr Large added that the proposal did not “guarantee or transparently demonstrate” how Australia’s biosecurity system would be strengthened.

He called on Federal Agriculture Minister Murray Watt to “read the room and kill off the tax proposal”.

The Red Meat Advisory Council said it was “deeply concerned” with the levy, citing its “unclear scope” and the need for “increased contributions from risk creators”.

AusVeg — the national peak industry body representing vegetable, potato and onion growers — cited the Government’s “failure” to tax key risk creators, and a “lack of recognition” of the industry’s existing investment on biosecurity preparedness.

Other groups that rejected the levy included GrainGrowers, Sheep Producers Australia, Australian Pork Limited, Australian Chicken Meat Federation, LiveCorp, Seafood Industry Australia, Avocados Australia, CANEGROWERS, Citrus Australia, Melons Australia, and the Australian Forest Products Association.