Federal budget: Farmers hope ‘cost of living’ measures will take care of business

How different does Jim Chalmers’ budget playlist look to the ag sector’s? We break down all the hits, from Let it Be to Fight for Your Right.

Farmers and rural advocates are preparing for a tough federal budget, as Treasurer Jim Chalmers prepares to hand down his first full-year budget tomorrow night.

Mr Chalmers has continued to promise a “cost of living” budget aimed at not adding to the inflationary pressures heavily affecting the nation.

National Farmers’ Federation chief executive Tony Mahar told The Weekly Times that they were bracing for a budget where “almost anything could be on the chopping block”, but hoped the $90 billion agriculture industry would be supported.

Where are the cards likely to fall? Here’s the top 10 things on the ag sector’s ‘hit’ list.

Grain farmer Nathan Wegener with his Brett Wegener in their crops at Callington, east of Adelaide. Picture: Kelly Barnes/The Australian

1. MY ISLAND HOME

Top of the charts is that the federal government looks set to deliver a long-awaited sustainable biosecurity funding model with a $200 million boost on top of the $600 million already provided by taxpayers.

But, as always, the devil may be in the detail as the B-side to this hit will see taxpayers, importers and farmers – who say they already pay their right whack for biosecurity – contribute to the increased funding.

2. DON’T WORRY BE HAPPY

Farmers have feared the ACCC agriculture unit – a supply chain bulwark for farmers dealing with large companies – may be discontinued in a year when the Treasury razor gang is in control.

The ACCC told The Weekly Times that its cash flow is a government decision and to ask them. The Treasury said its decision would be revealed in the budget. Sources close to the situation say strong signals in recent days suggest the unit will live to fight another day.

3. LONG & WINDING ROAD

Infrastructure Minister Catherine King last week announced a review of more than 700 projects in the nation’s $120 billion, 10-year infrastructure pipeline. Those not currently underway and approved by the Coalition are likely on death row.

In response, the newly-formed Rural Roads Alliance reiterated its calls for an emergency $5.5 billion budget funding package for a “dire” rural roads network.

Ms King followed up by announcing a new $250 million spend for road projects in rural, regional and outer-urban areas.

Stakeholders fear that injection could be it for regional roads (one suggested those driving on bumpy bush roads might need to keep the chiropractors number close at hand for the time being).

Treasurer Jim Chalmers at Parliament House Canberra. Picture: NCA NewsWire/Martin Ollman

4. LET IT BE

The popular instant asset write-off measure is due to expire on June 30.

If Treasurer Jim Chalmers fails to extend the scheme, farmers hope he will at least introduce concessions to cover plant and machinery ordered and invoiced prior to June 30, 2023 where those goods haven’t been received due to supply chain bottlenecks.

A ‘watered-down’ small business energy incentive announced this week dampened some enthusiasm that the write-off would be extended.

4. FIGHT FOR YOUR RIGHT

Assistant Minister for Competition, Charities and Treasury Andrew Leigh gave farmers hope in March of soon being able to fix their own agricultural equipment, saying the federal government was open to introducing mandatory right to repair laws.

Farmers with broken machinery waiting for an authorised dealer to read the authorised manual, or install authorised parts, hope funding will be provided to kickstart a consultation process.

5. OUR HOUSE

The ag industry is advocating for a long-term and nationally co-ordinated approach to increasing regional, rural and remote housing and accommodation availability, with the current situation “paralysing farmers’ ability to attract and retain workers.”

Ideas put forward to the government include improved tax incentives and planning approvals; improving access to finance and a dedicated regional housing infrastructure investment fund.

There is clearly no silver bullet, and hopes are slim one will be delivered next week.

6. CAREER OPPORTUNITIES

With 100,000 positions vacant across Australian agriculture, farmers this week again demanded the federal government introduce a “purpose built” visa to better address agriculture’s ongoing worker shortages.

Home Affairs Minister Clare O’Neil last month promised to overhaul Australia’s “broken” migration system on the back of a scathing review into federal visa programs.

Joining the dots – like infrastructure – a well-timed government review takes pressure from the budget.

Compounding problems are the new UK free trade deal means less fruitpicking backpackers, while farmers say a “shortsighted” focus on Pacific Australia Labour Mobility scheme workers is not addressing ag’s long-term issues.

8. IT’S OH SO QUIET

Grain growers want to see plans that will increase domestic manufacturing of fertilisers, chemicals, fuels, and spare parts through the $15 billion National Reconstruction Fund.

The Weekly Times understands the budget papers will include details around how the fund might be divvied up, albeit with a focus on sustainability and climate change programs.

9. CONNECTION

Regional Australians are crossing fingers that the government will fund a 2021 Regional Telecommunications Independent Review Committee recommendation to plug telecommunication black holes with better mobile and internet connectivity across the regions.

10. LIVIN’ ON A PRAYER

The farming community is hoping to see what it will cost taxpayers to phase-out the live sheep trade. Or, in the least, how much the independent panel is being paid to report on the transition.

Originally published as Federal budget: Farmers hope ‘cost of living’ measures will take care of business