The Federal Budget has been released, and the impact on growers is being carefully considered by the GrainGrowers team.
GrainGrowers will maintain its focused advocacy program to encourage government policy and funding initiatives that ensure growers can meet current challenges and opportunities.
Key outcomes:
Growers to pay new biosecurity levy
Missed opportunities in road funding
Fuel Tax Credits to remain
Instant Asset Write Off reduced
Funding for childcare
Biosecurity
GrainGrowers is disappointed in the decision to impose a biosecurity protection levy on agricultural industries, as growers are not risk creators and will now potentially face increased biosecurity costs in addition to PHA and GRDC levies, on top of their operational biosecurity costs.
GrainGrowers is working to identify what this will mean for growers and to understand its impact.
Biosecurity Funding Allocated: The Budget includes more than $1 billion in new biosecurity investments over the next four years, with over $260 million in new funding per year, ongoing and locked, from 2027-28. This funding increase is permanent.
New levy for growers: A new biosecurity protection levy, collecting an amount equivalent to 10% of 2020-21 levy rates, will be imposed on growers from 1 July 2024.
Infrastructure
GrainGrowers is concerned by the lack of additional funding in the budget for rural roads that have been impacted by the recent floods and high rainfall.
The Government is undertaking an independent strategic review of the Infrastructure Investment Program (IIP) and therefore minimal detail is available in the budget about new infrastructure projects.
GrainGrowers is continuing to advocate to ensure rural roads are not forgotten in the Federal Government’s $120 billion pipeline.
Increased Road User Charge: The Government will increase the Heavy Vehicle Road User Charge rate from 27.2 cents per litre of diesel by 6 per cent per year over 3 years from 2023–24 to 32.4 cents per litre in 2025–26.
Funding to streamline local road access: $22.3 million over 6 years from 2023–24 for phase 3 of the Strategic Local Government Asset Assessment Project to continue assessments of local government road assets, which will support the development of a national automated road access system for heavy vehicles.
Funding for infrastructure review: The Government is undertaking an independent strategic review of the Infrastructure Investment Program (IIP) to ensure the $120.0 billion pipeline over 10 years is fit for purpose and therefore minimal detail is available in the budget about new infrastructure projects.
Rail funding: $0.4 million in 2022–23 allocated to enable the National Transport Commission to progress the rail interoperability work plan, to be met from funding previously included in the Contingency Reserve.
Inputs
Fuel Tax Credit maintained: Government has committed to maintaining the Fuel Tax Credit scheme.
Instant Asset Write Off reduced: Instant Asset Write Off reduced to $20,000 and capped at $10m turnover. Government has not given solid incentive for growers to invest in the machinery required to gain efficiencies and improve productivity. Given the persistent delays and global shortages in accessing machinery, GrainGrowers believes that an extension would have enabled farmers to receive the current machinery and assets on order.
Workforce and Childcare
The government’s commitment to childcare funding is a positive for growers, as many with young families are feeling cost and availability pressures in regional areas.
Childcare funding: Increased funding for childcare is a positive step towards addressing a range of issues affecting growers concerning childcare access, which feeds into workforce pressures. GrainGrowers is hosting a Rural and Regional Childcare Roundtable to work through the issues and consider the next steps.
Temporary Skilled Migration Income: Threshold increased from the current rate of $53,900 to $70,000 from 1 July 2023.
Trade and Market Access
This Budget saw a strong focus on Pacific and Southeast Asia, with funding allocated to building closer diplomatic and economic connections, however GrainGrowers remains concerned that that market diversification has be deprioritised.
Funding to enhancing diplomatic capability: $35.7 million over 4 years allocated to facilitating increased visits by leaders and emerging leaders from Southeast Asian nations and providing opportunities to study in Australia.
Reduced funding for market diversification: TheAgri-Business Expansion Initiative and ATMAC are not continued. The Government will achieve savings of $61.0 million over 4 years from 2023–24 by reducing funding for the Export Market Development Grants (EMDG) program. No funding already committed or applications currently under assessment will be impacted by this measure.
Sustainability
The budget outlines targeted funding for agricultural sustainability initiatives.
Funding for ag outcomes: $741.3 million over 5 years from 2023–24 from the Natural Heritage Trust special account to support local and long-term environmental and agricultural outcomes.
Funding for projects on soil health and NRM: $302.1 million over 5 years from 2023–24 to support a climate-smart, sustainable agricultural sector including funding for NRM organisations, on-ground projects, support for farmers to improve soil health and natural resources and funding to maintain delivery capability.