Grain Producers Australia welcomes the Federal Government’s Biosecurity Tax being scrapped, marking the deserved end to this fundamentally flawed policy proposal.
The Agriculture Biosecurity Protection Levies Bill was officially withdrawn from the Senate notice paper HERE yesterday, igniting a collective sigh of relief from all Australian farmers – especially grain producers.
The proposed Biosecurity Tax was first announced in the 2023 Federal Budget – blindsiding the farm sector and levy-paying producers. The fatally flawed proposal subsequently faced strong and sustained opposition, especially from grain producers, led by GPA’s staunch and unambiguous policy advocacy.
This included GPA coordinating a joint letter, co-signed by 50-agricultural representative groups, which was sent to Prime Minister, Anthony Albanese, Federal Treasurer, Jim Chalmers, and the then Agriculture Minister, Murray Watt, in late 2023. HERE
GPA Chair, Barry Large.
This joint letter sent a unified message, calling for an immediate and urgent reversal of the Federal Government’s fundamentally flawed ‘one-size-fits-all’ tax policy that it was seeking to impose on all Australian farmers: intending to implement, at the initial rate of 10 per cent, by 1 July 2024.
This strong and unified message also highlighted the fact independent analysis – as provided in the Productivity Commission’s report into levies – had assessed the proposal against well-understood policy criteria, and supported industry’s view that it was actually a new tax.
The Biosecurity Tax also failed to pass more independent scrutiny when a report in early 2024, by the Crawford School of Public Policy’s Tax and Transfer Policy Institute (TTPI) at ANU, also highlighted other fundamental failures and contradictions in the policy’s design and key principles. HERE
GPA Chair and WA grain producer, Barry Large, welcomed news of the flawed Biosecurity Tax proposal finally being scrapped, and its removal from the Senate notice paper.
“I’d like to genuinely thank those members of parliament who took time to sit down and talk to farmers about their serious concerns, and actually listened to them and then stood up to fight and oppose the Biosecurity Tax,” he said.
“The Coalition has been particularly strong on this matter, understanding the policy design failures, led by the strong voices of rural members who spoke with farmers in their local electorates. We’re also thankful for the support other representatives provided in achieving this win, including independent members and the Australian Greens, led by Agriculture Spokesperson, Senator Peter Whish-Wilson.”
Mr Large said the proposed Biosecurity Tax was inequitable and ignored the fact grain producers already contribute significant funding in various levies, directly off the bottom lines of their businesses.
He said these levies are hypothecated for specific purposes – including biosecurity emergency management and responses – where groups such as GPA work in trusted partnerships to collaborate with delivery agencies, to ensure real value is delivered for actual levy-payers, and many other shared beneficiaries, through joint projects and other funding programs or initiatives.
But he said the Biosecurity Tax was not hypothecated and the funding to be collected directly off farmers was instead being re-directed into consolidated revenue for the Federal Government.
“From the outset GPA was concerned at the lack of transparency and accountability on how funds to be raised from the Biosecurity Tax would actually be spent, and if this revenue would actually improve biosecurity protections,” he said.
“There was also a serious lack of consultation during the policy design process, which led to its fundamental design flaws – and that’s why it ultimately failed to win the support needed, to pass parliament. There are a few basic lessons to be learned, and not forgotten, from this experience.
“In future, we expect meaningful consultations will occur, starting by talking with and listening to the representative groups such as GPA, who in fact hold these genuine responsibilities for all growers and take them seriously; especially biosecurity.”
Mr Large said GPA would also continue working to ensure grains levies deliver optimal value for all grain producers, and other beneficiaries including the national economy, environment and rural communities.
“This will continue to be a key focus for GPA’s policy priorities at this year’s Federal Election, and beyond, as we advocate to ensure the Australian grains industry continues to grow in strength, and build on our strong economic contribution to the nation,” he said.
“Our industry has contributed $81.15 billion in total gross value towards the national economy in the past three years, at an annual average of about $27 billion. HERE
“Strong biosecurity can help to ensure we project our growers and our industry’s capacity to continue building on this economic contribution, and the delivery of multiple shared benefits, in future.”
GPA’s joint letter in late 2023 also urged the Treasurer to ask Treasury to conduct proper detailed economic analysis/modelling of the Biosecurity Tax policy proposal including: criteria used in labelling agricultural producers the only ‘beneficiaries’ of the biosecurity system and not others; given every Australian is a beneficiary of a robust biosecurity system and it is a key element in Australia’s food security. And, economic modelling of the contributions made by risk-creators, compared to full range of producer contributions including acknowledgement as taxpayers. However, this request for pertinent economic analysis on the policy was ultimately not provided.
GPA’s analysis on the Biosecurity Tax proposal showed grains would pay about $30 million of the proposed $50 million to be raised annually, at the 10pc rate – whilst a grower survey immediately after the 2023 budget announcement also demonstrated overwhelming opposition to the proposal. HERE
ENDS
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