Citrus Australia has urged the federal government to repeal its proposed Biosecurity Protection Levy. Announced under the government’s 2023–24 budget, the levy will apply to Australian producers of agricultural, forestry and fishery products starting July 1, 2024.
The levy has been set at a rate equivalent to 10% of the 2020–21 industry-led agricultural levies. This is estimated to increase receipts by $153 million over three years.
More than $3.5 million of levies were collected from the Australian citrus industry during 2020–21. Citrus Australia Chief Executive Officer Nathan Hancock said this money was used to fund important research and development projects, industry marketing campaigns and training programs.
In its current form, Hancock said the Biosecurity Protection Levy had the potential to undermine the statutory levy system. “To call the Biosecurity Protection Levy a levy as it is proposed is a misnomer. It is simply a grower-funded tax on food security,” he explained.
“The statutory levy system has been effective in investing grower money — and, where applicable, taxpayers’ money — in research and development, marketing and biosecurity for decades,” Hancock said. “Through peak industry bodies, industry is involved from the inception of each levy; it has a say in the amount the industry is levied and how the funds are invested. The proposed Biosecurity Protection Levy has none of these hallmarks.”
Citrus Australia was not involved in consultations about the introduction of the Biosecurity Protection Levy. Hancock said he and leaders of other plant industry associations were stunned when the new levy was announced.
“It’s perplexing that a material figure of a 10% equivalent tax could be arrived upon prior to consultation with industry,” Hancock said. “What the citrus industry, or any other levied industry, pays in these statutory levies is in no way aligned with the investment of our biosecurity activity, nor our exposure to biosecurity incursions. It is therefore misguided to use statutory levy contributions as the base for calculating a dedicated biosecurity levy for agriculture.”
Hancock also called into question the levy’s ability to change the trajectory on biosecurity in Australia. Funds collected under the Biosecurity Protection Levy will filter into the Department of Agriculture, Fisheries and Forestry’s consolidated revenue stream. Citrus Australia is concerned this money will be used to fill funding gaps in other areas of the department.
Hancock said a biosecurity breach remains the industry’s greatest threat. “It could wipe out citrus production in parts or all of Australia,” Hancock explained. “Biosecurity prevention and preparedness is therefore a matter of upmost importance to Citrus Australia and our members.”
“I have written to the Hon. Murray Watt, Minister for Agriculture, Fisheries and Forestry, asking that his government abolishes this levy before it comes into force on July 1, 2024,” Hancock said.
Source: Citrus Australia
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