Farm leaders call for ‘unfair’ biosecurity levy to be scrapped

More than 50 agricultural groups have signed a joint letter urging the federal government to drop its controversial biosecurity levy. See the full letter.

More than 50 agricultural groups have joined forces to urge the federal government to scrap its “grossly unfair” biosecurity levy, due to come into effect on July 1 this year.

Farmers will pay almost $48 million a year to help bankroll Australia’s revamped biosecurity funding system via the new levy on all products, announced in last year’s federal budget.

As part of the new biosecurity funding model, grassfed cattle producers will pay an extra 50 cents per head while cotton growers will need to pay an extra 22.5 cents per 227kg bale. Horticulture and aquaculture producers will also be affected at varying rates per kilogram of produce.

Leaders from more than 50 commodity groups – including Grain Producers Australia, Cattle Australia, Wool Producers Australia, the Red Meat Advisory Council, Egg Farmers of Australia and Australian Banana Growers’ Council – have signed a letter to Prime Minister Anthony Albanese, Agriculture Minister Murray Watt and Treasurer Jim Chalmers to call for the new tax to be axed.

Agriculture Minister Murray Watt announced the biosecurity levy in last year’s federal budget. Picture: Chris Kidd

The industry letter argues producers already pay their fair share in biosecurity investments including the Grains Research and Development Corporation’s spending of $42.3 million last financial year, while Meat and Livestock Australia stumped up more than $26 million.

“The producer groups represented here share grave concerns about the flawed approach and inequity of this new tax proposal,” the letter, authored by Grains Producers Australia chief executive Colin Bettles, states.

“Put simply, it is a tax, not a levy, and it undermines trust and confidence in this important system.

“Producer representatives are calling for an immediate reversal of the government’s flawed, ‘one-size-fits-all’ tax proposal.

“Primarily, it unfairly punishes those already doing the right thing (i.e. levy-paying producers are being forced to pay more taxes), while others continue to avoid making any contribution to biosecurity costs and shared responsibilities.”

WoolProducers Australia chief executive officer Jo Hall said the federal government was taking a second bite out of farmers with the new levy.

“Farmers are facing ever increasing pressures to produce food that’s affordable, and the highest quality in the world, while others rake in record profits,” she said.

“This move by the federal government will only amplify these production pressures by hitting farmers with another tax that’s nothing more than double dipping and cost-shifting on biosecurity.”

WoolProducers Australia chief executive officer Jo Hall.

The letter calls for the federal government to pause the implementation of the levy while completing detailed economic analysis and modelling of the policy proposal and increasing transparency of how the funds will be used by the Department of Agriculture Fisheries and Forestry.