GrainGrowers, Media Release, 20 October 2023

The crucial importance of delivering on biosecurity commitments must not be overlooked in the current debate over sustainable funding, industry body GrainGrowers has warned.

In its submission to the public consultation process on the design and implementation of the Biosecurity Protection Levy, GrainGrowers recognised the concept of a shared responsibility for biosecurity, and highlighted that industry, government and community must work together to deliver biosecurity outcomes for Australia.

GrainGrowers CEO Shona Gawel said growers already made significant direct financial contributions through R&D investment, support for Plant Health Australia, contributions to emergency plant health responses, as taxpayers and in the everyday operations of their farm enterprises.

“Given the investment growers already make in biosecurity, the government is now on notice that it needs to deliver a strong value proposition before industry openly supports the imposition of an additional levy burden.”

“Since the measures were first announced, we have been waiting for clarity on the value of the charge to be applied to grain crops and resolution to the issue of a risk creator or container levy. Both issues should have been addressed early in the development of the current government proposal, and we are waiting with interest to have them quickly resolved.”

The GrainGrowers submission highlights the need for transparency and accountability in how funds are collected and spent with the biosecurity protection levy and calls on the government to demonstrate improved biosecurity outcomes from any changes.

Ms Gawel said the proposed funding mechanism appears to be focused on ease of implementation rather than taking into account issues such as efficiency, equitability or effectiveness – fundamental principles that governments would normally consult on when developing a new tax or charge.

“Given our long-term call for sustainable biosecurity funding, we need the government to re-examine its approach and uphold its budget commitment.”

“Industry supports the need for a reset so the biosecurity system can respond to changing and increasing biosecurity threats, and we are committed to working with the government to find the right funding model to deliver these improved outcomes.”

“What we need now is for the government to embrace the consultation process and engage with stakeholders to ensure all outstanding issues are fully considered and addressed.”

The GrainGrowers submission covers a range of critical issues, including:

• The need to secure and maintain sustainable funding.

The 2023-24 budget commitment to long term sustainable funding for Australia’s biosecurity system must be upheld.

• Confirmation of a risk creator or ‘container’ levy.

Priority must be given to a clear resolution on the proposal to implement a container levy.

• A shared culture of biosecurity.

As a beneficiary of biosecurity, it is important that agricultural industries participate in setting and monitoring performance.

• Accountability on biosecurity activities.

Greater transparency around biosecurity spending is required, along with better performance monitoring.

• Concerns relating to the proposed biosecurity protection levy.

The principles behind the establishment of the Biosecurity Protection Levy are unclear raising significant concerns around how the levy would be applied and operate.

• Equitability of proposed levy charges.

It is important that there is equitability in the way industries are charged as beneficiaries of biosecurity, and the way individual industry members may access thresholds and exceptions.

• Uncertainty regarding the proposed levy rate for the grains industries.

GrainGrowers is seeking confirmation on the value of the levy charge to be applied to grain crops.

• Compliance costs and considerations.

Transparency is required around the effectiveness of current levy collection arrangements and the cost of implementing the measure.

• Distortionary impacts.

In its current form the proposed levy undermines confidence in the voluntary industry levy system, and it has the potential to cause unintended consequences.

• The need for open consultation.

An increased focus on engaging with industry in a meaningful and timely manner is required as the proposal is further developed and moves towards implementation.

A full copy of the submission can be downloaded from the GrainGrowers website.