Grain Producers Australia has flagged the possibility of reallocating a minute proportion of the grower levies paid to the Grains Research and Development Corporation to Plant Health Australia to help fund the federal government's increased biosecurity program without the need for a new levy.
In its submission to a review into the Primary Industries (Excise) Levies Bill 2023 GPA raised the possibility of reallocating 0.06 per cent of GRDC levies to PHA to help fund biosecurity projects.
The government has proposed a new levy on the agriculture sector to raise $50 million dollars which it says will be used to help fund biosecurity projects.
Critics of the new levy from within the ag sector have said it amounts to a new tax, not a levy, with the funds going into consolidated revenue rather than being directly allocated to biosecurity.
The GRDC is in sound financial health, buoyed by strong levy contributions on the back of the recent series of record harvests, with $480 million in cash reserves according to GPA.
GPA's proposal in its submission to the review was to temporarily alter the distribution within grower levies.
At present growers are liable for 1.02 per cent of levies on their grain, with 0.99pc going to GRDC, 0.01pc to PHA, the National Residue Service 0.015pc and the emergency plant protection response the remaining 0.005pc.
GPA said an alteration to divert 0.06pc of the GRDC levy to PHA would help fund the necessary additional biosecurity measures while not jeopardising GRDC investments.
In its submissions GPA claimed the GRDC currently has a significant level of unallocated strategic reserves collected for the purpose of research, development and extension of $480 million as of September 30 last year.
It said grower levy rates had not changed since 2007 and only once in the past 25 years and that a shake-up would more accurately reflect grower needs and the increased risk of biosecurity incursions in a global economy.
"Over the past five years, annual R,D and E levy collections have average more than $140 million a year, compared to an average $1.2 million for biosecurity."
However, GPA's position on funding the biosecurity sector through existing levies was not shared by fellow peak body GrainGrowers, which wants to keep GRDC levies the same.
GPA said the message from growers surrounding the proposed levy was clear.
In the submission it said 94pc of Australian grain producers surveyed felt they already contribute enough in their existing levies to co-fund biosecurity programs, 98.6pc said growers should not have to pay this levy when biosecurity risk creating importers are not paying the sea container levy proposed to help fund biosecurity projects.
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
