Victorian farmers pay twice: Double hit on biosecurity levy

Victoria’s cattle and sheep producers face paying a biosecurity levy to both the state and federal governments. See why.

More than $50 million of Victorian livestock producers unspent transaction duties have accumulated in compensation funds earmarked for biosecurity. Picture: Zoe Phillips

Victorian livestock producers face paying twice to fund both state and federal biosecurity, despite having already poured $50.7 million into the state’s bloated cattle, sheep, goat, pig and apiary disease compensation funds.

The funds have grown from $28m to $50m in five years, mainly on the back of cattle producers’ transaction duties of $5 a head.

In the meantime the federal government has announced it will introduce a new national biosecurity levy on July 1 next year, which all livestock producers will have to pay.

Departmental reports shows Victorian livestock producers paid $10.7m into the state’s compensation funds in 2022-23, but only $4.81m was paid out to subsidise electronic identification ear tags and industry good projects.

One industry leader, involved in overseeing the funds, said no money had been paid out for sheep losses in years, while cattle compensation was limited to covering livestock and vaccination costs associated with rare anthrax outbreaks.

Even an outbreak of exotic lumpy skin or foot and mouth disease would be covered by state and federal funding agreements, not the state’s compensation funds.

“It doesn’t cover any current diseases for sheep and goats,” the industry leader, who did not want to be identified, said.

“Most of the money is (from) cattle. (But) we can’t get the department to review cattle duties.”

Victorian livestock producers face paying twice to fund both state and federal biosecurity. Picture: Zoe Phillips

The government confirmed that over the last five years, no compensation has been paid out of the cattle, sheep and goat or swine compensation funds, with just $23,133 paid out to beekeepers.

Victoria’s Livestock Disease Control Act was amended in 2019 to remove restrictions on spending, allowing the Agriculture Minister to make payments to “programs and projects for the benefit” of livestock industries, especially biosecurity.

Cattle Compensation Advisory Committee member Michael McCormack said Victoria’s revolving door of agriculture ministers had not helped when it came to getting funding out the door to boost biosecurity.

“We’ve been trying very hard to distribute our portion,” Mr McCormack said. “(But) we’ve had quite a few ministers and it’s difficult to work with them.”

He said the quality of proposals put to the committee also “weren’t up to scratch”.

Victorian Farmers Federation VFF livestock councillor Peter Star said he was very concerned a large chunk of the $50.7m could be “gobbled up by the Treasurer”, given the state was so debt-ridden.

“It’s a no-go putting it into paying for more public servants,” Mr Star said.

Agriculture Victoria, which is meant to administer the compensation funds, has also failed to publish regular reports on how producers’ duties are being spent.

The latest compensation fund reports for cattle, sheep and goats lodged on Agriculture Victoria’s website date back to 2020, with no mention of a 2021 report and a note stating the 2022 report is “expected in June 2023”.

Mr Star said all livestock producers deserved to know how their money was being spent.

A government spokesman said “work is underway to improve collaboration with key industries to deliver solutions to emerging biosecurity challenges’.’