GPA chair Barry Large.

GRAIN Producers Australia has welcomed the withdrawal of the Agriculture Biosecurity Protection Levies Bill in the Senate yesterday, and said the move has prompted a collective sigh of relief from all Australian farmers, including grain producers.

The proposed biosecurity tax was first announced in the 2023 Federal Budget, and faced strong and sustained opposition, especially from grain producers as represented by GPA.

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.

The letter called for an immediate and urgent reversal of the Federal Government’s “one-size-fits-all” tax policy it was seeking to impose on all Australian farmers at the initial rate of 10 per cent from July 2024.

It highlighted the fact that 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 a tax rather than a levy, and failed to pass further independent scrutiny.

This came in early 2024 when the Australian National University’s Crawford School of Public Policy’s Tax and Transfer Policy Institute highlighted other faults and contradictions in the policy’s design and key principles.

“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,” GPA chair and Western Australian grain producer Barry Large 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 legislation 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 partnerships with delivery agencies, to ensure real value is delivered for levy-payers, and 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 from farmers was instead being redirected 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.

“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.”

Source: GPA