Australian federal budget $100m for green farmers

The Morrison government will cut taxes for farmers who generate revenue from carbon credit and biodiversity programs in a bid to drive down emissions.

The federal budget will include environmental investments as part of the Morrison government’s bid to boost its green credentials ahead of the federal election and achieve its net zero target by 2050.

The government will cut taxes for farmers who generate revenue from carbon credit and biodiversity programs.

It estimates that farmers will receive a $100m benefit through concessional tax treatment. It comes as part of a wider push to ensure farmers and primary producers are at the forefront of emissions reductions.

It will also commit an extra $60m new funding targeted at advancing plastic recycling technology to tackle problematic plastics like bread bags and chip packets, which are choking up waterways and destroying marine life.

The extra funding boosts its Recycling Modernisation program to $250m and will drive a $1bn transformation of the waste and recycling sector.

Scott Morrison said the funding was important to stop plastic waste from entering the ocean and would help boost the economy and create jobs.

“This new funding stream, dedicated to helping solve the problem of hard-to-recycle plastic waste, demonstrates our determination to invest in Australian industry, to growing the recycling sector and to creating a stronger economy and stronger future for Australia,” the Prime Minister said.

In a separate program, farmers will be able to claim tax concessions through the sale of carbon credits, issued through the government’s Emissions Reduction Fund, if they successfully sequester carbon on their properties.

Under a trading market, these credits can be bought by companies to meet promises to curb emissions or sold on an open market.

It comes as part of Agriculture Minister David Littleproud’s world-first scheme – introduced into parliament in February – that aims to establish a national legislative framework for biodiversity trading between farmers and the private sector.

The scheme allows private companies to invest in non-agricultural land owned by farmers to bolster their environmental credentials, while farmers are incentivised to improve the biodiversity value of the properties to attract greater investment.