New biosecurity levy will be paid for by producers

Livestock producers already pay a biosecurity levy. The federal government’s new biosecurity plan means they will now pay more.

Livestock producers say they are already paying levies to fund biosecurity and will now be hit by a 10 per cent impost following the budget announcement.

Treasurer Jim Chalmers’ new biosecurity funding plan will require farmers to contribute $47.5 million a year through a new levy that will be equivalent to 10 per cent of 2020-21 industry-led agricultural levies.

NSW Farmers sheep committee chairwoman Jenny Bradley. Picture: Supplied

NSW Farmers sheep committee chairwoman Jenny Bradley of Armatree in NSW said it was important to note that current livestock levies already went towards biosecurity.

“We do already pay a biosecurity levy,” she said.

Mrs Bradley said biosecurity was critical and something Australian producers would support. However, many levies were already being paid at the grassroots or farmgate level.

“This is meant to be cost-sharing across the supply chain,” she said. “We would seek more clarity on what is required.”

Mr Chalmers said the agricultural biosecurity protection levy would be a pro-rata system, and would apply to all domestic agricultural, fisheries and forestry producers from July 1 next year, after a period of industry consultation.

Mr Chalmers said the biosecurity funding package budget meant $1 billion in new biosecurity investments over the next four years, with more than $260 million in new funding per year, ongoing and locked from 2027-28.

For instance, cattle producers could expect to pay an additional 50c a head to accommodate this levy.

Australian Beef Association chief executive officer David Byard says biosecurity is important and producers are already contributing.

Australian Beef Association chief executive officer David Byard of Launceston Tasmania said all producers accepted how important biosecurity was for Australia.

“On the face of it, it seems like a good plan,” he said.

“The proof will be determined by exactly how much it costs producers,” Mr Byard said.

He said the ideal situation was sharing costs across the entire supply chain.

Mr Byard said levies certainly weren’t something new for producers. They had been paying them for years.

The Department of Agriculture, Fisheries and Forestry introduced cattle transaction levies on December 28 1990.

On a per-head basis, the current levies for grass-fed cattle are 13c for Animal Health Australia, 29c for National Residue Testing, $3.66 for marketing and 92c for research and development.

The sheep and lamb levy is calculated differently. For lambs making more than $75 at the point of sale, 15c goes to Animal Health Australia, 8c for National Residue Testing, 90c for marketing, and 37c for research and development.