The federal government has scrapped its proposed biosecurity levy, which would have seen $50 million per year collected from the agricultural sector.
The proposed levy was deeply unpopular with farming groups and failed to get the support of the Coalition or the Greens.
Minister for Agriculture, Forestry and Fisheries Julie Collins said the government had listened to farmers and withdrew the bill on Wednesday.
“The Albanese Labor government will continue to work with farmers and stakeholders so producers are involved in the policy solutions that protect their livelihoods,” Ms Collins said.
“We acknowledge that the Agriculture Biosecurity Protection Levies Bill will not be part of the solution, which is why we supported its removal from the Senate.”
In 2023, the federal government announced a $1.03 billion biosecurity funding package over four years and $267 million per year ongoing from 2027/28.
Under the 2023 proposal, higher fees were to be levied from more groups to protect Australia from exotic pests and diseases. (Supplied: Department of Agriculture, Fisheries and Forestry)
Under the proposed funding arrangement with the levy, primary producers would have contributed 6 per cent of biosecurity funding, importers 48 per cent and Australia Post 2 per cent, with the remaining 44 per cent coming from ongoing taxpayer funding.
‘Huge win for farmers’
Farming groups from across Australia pushed back against the proposal, which was initially scheduled to be enforced from July 1, 2024.
National Farmers Federation president David Jochinke said the removal of the bill was a “huge win for farmers”.
“The minister and the Senate have listened — this tax was deeply flawed and unfair to farmers,” Mr Jochinke said.
“The agricultural sector was united in its opposition to this tax and we are just as united in our commitment to protecting our country’s biosecurity.
“Farmers already contribute significantly to the system, and we look forward to working with the government on policy that strengthens our defence against pests and diseases without adding extra costs on farmers.”
Catherine Velisha was pleased to hear the biosecurity levy would not be implemented. (ABC Rural: Jane McNaughton)
Third-generation vegetable grower Catherine Velisha told the Victorian Country Hour the removal of the bill would benefit farmers and consumers.
“Anything that doesn’t put more cost on to producing or buying fruit and vegetables should be celebrated,” she said.
“Everyone is struggling out there — businesses, farmers, and customers.
“We can keep putting costs onto growers, but then we’ll have nothing to grow and nothing to protect.
“So I think it’s a smart move.”
Cattle Australia chief executive Chris Parker said the proposed levy was an “ill-conceived law”.
“Finally, the government has recognised its proposed levy system would have resulted in inequitable imposts on farm industries through a clunky collection mechanism that lacked transparency,” Dr Parker said.
“The Australian beef industry exports more than 70 per cent of its production and this is contingent on our disease-free statuses, so biosecurity is of paramount importance to grass-fed beef producers.
The cattle industry has welcomed the removal of the biosecurity levy bill. (ABC News: Lucy Cooper)
“Cattle Australia fully supports increased government investment in biosecurity and with the federal election due in coming months, we encourage both parties to release their policies for a workable and sustainable funding model that provides biosecurity agencies with the resources they need to protect our industries.”
