‘Extremely angry’: Growers vow to fight biosecurity levy

Despite being called “very modest” by Murray Watt, the new 10 per cent biosecurity levy has grain growers riled up.

Grain Producers Australia chairman Barry Large says growers are opposed to a new 10 per cent biosecurity levy.

A peak grain lobby group has vowed to fight against the federal government’s proposed new biosecurity protection levy.

Grain Producers Australia chairman and Western Australian grain producer Barry Large said growers were “extremely angry and irritated” about the new 10 per cent impost, which was due to come in from July 1 next year.

GPA released the results of a survey on Monday, which found that out of 140 Australian growers who responded to the survey request, 84 per cent (116) didn’t agree with paying the new levy, 13 per cent (18) said they wanted more details, while 4 per cent (5) supported the levy.

The levy is part of a new $804 million biosecurity spend announced by the federal government in May, which will come into effect from July 2024.

Importers and taxpayers will contribute the majority of the policy cost, paying $390 million (48 per cent) and $350 million (44 per cent), respectively.

Producers are expected to contribute $47.5 million, or 6 per cent, of the total — equivalent to 10 per cent of 2020-21 industry-led agricultural levies.

Mr Large called on Federal Agriculture Minister Murray Watt to reconsider the charge, saying “risk creators”, particularly container importers, were “not paying their fair share”.

Based on last year’s crop production, which was Australia’s largest on record, Mr Large said growers would have paid an added $28.56 million under the new policy.

“With this additional 10pc payment, the total levies collected from Australian grain producers, based on last year’s $28 billion crop, will be $314.16 million,” he said.

“This added $28.56m in levies from grains also represents more than 60pc of the $47.5m that’s set to be raised by the new 10pc levy across all producers, as part of a ‘sustainable’ funding model.”

Mr Large said GPA was concerned a levy on imported sea containers had not been implemented.

A spokesman for minister Watt said the government “has already said we will investigate a container levy, while we make importers pay their fair share”.

“The government was seeking to implement “a fair system for paying for biosecurity”, and producers’ share was just six per cent of the total, the spokesman said.

The government would be consulting with industry on the policy between now and July 1, he said.

When the new payment was announced in May, Mr Watt labelled it “a very modest levy” that would result “in tangible outcomes that would benefit industry on the ground”.