10 May 2023

Federal Budget overview
Last night on Tuesday 9 March the Federal Government released its 2023/24 Federal Budget. This budget was an opportunity for the government to support growers and the agriculture industry more broadly to help grow the sector to $100b by 2030 and safeguard the future for agriculture production.

While the budget addressed some key areas of concern, it was nonetheless disappointing for growers as it did not adequately address critical issues that are impeding the industry’s capacity for growth.

AUSVEG had consulted with industry to develop a set of priority areas for its engagement with Treasury.

These areas included increasing vegetable consumption, supporting Australian vegetable growers to grow a reliable and competent workforce, building career pathways into horticulture, improved funding and education on sustainability tailored to growers, and securing a long-term funding model for biosecurity that includes all sectors that benefit from a secure biosecurity system.

Biosecurity
While additional funding for biosecurity is welcome, the announcement of an additional levy on farmers to contribute to this does not take into account the significant burden that primary producers are already shouldering to fund biosecurity activities.

We will engage in consultation with the government on this levy and how those funds will help improve Australia’s biosecurity system.

Regional Accommodation
Another missed opportunity with this budget was more support for regional accommodation to house critical farm workers in the horticulture sector, which is one of the biggest challenges with attracting and retaining a workforce in rural and regional Australia. While there were some funding announcements that are aimed at increasing housing supply, the need for on-farm and regional housing is an urgent issue that needs attention.

PALM Scheme
While AUSVEG welcomes the announcement of $370.8 million over 4 years to expand and improve the Pacific Australia Labour Mobility (PALM) scheme, the focus on a single scheme fails to address industry concerns about reliance on one scheme to solve our labour issues.

Increasing vegetable consumption
It was pleasing to see the announcement of $10 million over two years for a National Waste Education Campaign, which will work towards a nationwide consumer behaviour change program for waste. AUSVEG, through the Fruit & Vegetable Consortium, has been advocating for funding for a national behaviour change campaign that addresses low vegetable consumption; food waste will be a critical component of this project.

We look forward to continuing to advocate for more funding and programs that address this critical issue.

Increased funding for Australian Border Force and Fair Work Ombudsman
AUSVEG welcomes the investment to better resource Australian Border Force and the Fair Work Ombudsman, which have been a high priority for industry. The increased funding will allow for more enforcement and compliance for dealing with absconded workers and unethical workplace practices, and ensure that the high standards and strong welfare support for workers is maintained.

Funding for Department of Agriculture, Fisheries and Forestry
AUSVEG notes the one-off funding announcement in the budget for the Department to help ensure it is able to meet its financial commitments and continue to deliver its core functions, but warns that this is not a sustainable, long-term solution towards a sustainable funding model for the Department.

Find out more
The Australian Department of Agriculture, Fisheries and Forestry has released a series of fact sheets following the budget released on Tuesday 9 May that outlines key measures in the portfolio.

• These fact sheets can be accessed here >> https://www.agriculture.gov.au/about/reporting/budget/factsheets/2023-24
• A fact sheet on the Budget’s PALM Scheme reform announcements can be accessed here >> https://www.palmscheme.gov.au/resources/budget-2023-24-reforming-palm-scheme
• The full budget papers can be accessed here >> https://budget.gov.au/content/documents.htm

If you would like to discuss this or any other issues relating to the advocacy work that AUSVEG undertakes, please contact AUSVEG National Manager – Public Affairs Lucy Gregg on 03 9882 0277, or via email at publicaffairs@ausveg.com.au.

Extracts from the Budget papers

Agriculture
Strengthened and Sustainably Funded Biosecurity System
The Government will provide an additional $1.0 billion over 4 years from 2023–24 (and $268.1 million per year ongoing) to meet its election commitment to strengthen Australia’s biosecurity system. Funding includes:

• $845.0 million over 4 years from 2023–24 (and $255.3 million per year ongoing) to maintain biosecurity policy, operational and technical functions on a sustainable basis, including regulation, surveillance, domestic preparedness and response, and international engagement and capability development.
• $145.2 million over 3 years from 2023–24 to deliver modern digital systems in cargo pathways that are integrated with business systems, cut red tape and streamline regulation and service delivery for importers.
• $40.6 million over 4 years from 2023–24 (and $12.0 million per year ongoing) to continue the Indigenous Ranger Biosecurity Program to reduce biosecurity risks in Northern Australia and provide social and economic benefits to First Nations, rural and remote communities.

The cost of the measure will be partially offset through introducing:

• Cost recovery arrangements for the clearance of low value imported cargo, which is expected to raise $81.3 million over 3 years from 2024–25.
• A biosecurity protection levy on Australian producers of agricultural, forestry and fishery products from 1 July 2024, set at a rate equivalent to 10 per cent of the 2020–21 industry-led agricultural levies, which is estimated to increase receipts by $153.0 million over 3 years from 2024–25. The levy recognises the benefits that primary producers derive from Australia’s biosecurity system, including detection, identification and response associated with invasive pests and diseases, maximising trade opportunities, and enhancing access to premium overseas markets.

Supporting a Stronger and More Sustainable Agriculture Sector
The Government will provide $38.3 million over 4 years from 2023–24 (and $7.6 million per year ongoing) to support agricultural statistics, climate analysis and upgrades to data and information systems for the Australian Bureau of Agricultural and Resource Economics and Sciences.

Partnering to Implement the National Soil Action Plan
The Government will provide $20.0 million in 2023–24 to fund states and territories to deliver initiatives that contribute to priority actions of the National Soil Action Plan, tailored to regional soil needs and conditions. Funding for this measure is subject to financial contributions from the states and territories.

Department of Agriculture, Fisheries and Forestry – funding supplementation
The Government will provide $127.0 million in 2022–23 for the Department of Agriculture, Fisheries and Forestry (DAFF) to meet a funding shortfall predominantly related to cost recovered activities, and increased biosecurity operations including frontline border operations and import clearances. The supplementation funding will ensure that DAFF is able to meet its financial commitments as they fall due, while continuing to deliver its core functions.

Climate Change, Energy, the Environment and Water
Future-proofing the Murray-Darling Basin
The Government will provide $148.6 million over 4 years from 2023–24 towards the sustainability of the Murray-Darling Basin (Basin). Funding includes:

• $103.7 million for the Murray-Darling Basin Authority to prepare for and undertake the first statutory review of the Murray-Darling Basin Plan 2012, with updated science to enable the Basin to adapt to the impacts of climate change.
• $44.9 million for the Department of Climate Change, Energy, the Environment and Water to provide advice and work with Basin states and affected communities on the Basin Plan.

Natural Heritage Trust – project funding
The Government will allocate $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 includes:

• $341.2 million over 5 years from 2023–24 to protect nature, threatened species and habitats and to maintain delivery capability through activities like the BushBlitz, Natural Resource Management (NRM) partnerships and on-ground conservation and recovery activities.
• $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.
• $50.0 million over 5 years from 2023–24 to conserve and restore Ramsar listed wetlands and catchments.
• $48.0 million over 5 years from 2023–24 to continue management of Australia’s state-managed world heritage listed properties.

National Waste Education Campaign
The Government will provide $10.0 million over two years from 2023–24 towards a nationwide consumer behaviour change program for waste.

Foreign Affairs and Trade
Enhancing Pacific Engagement
The Government will provide $1.9 billion over 5 years from 2022–23 to expand Australia’s engagement with Pacific Island countries. Funding includes, but is not limited to:

$370.8 million over 4 years to expand and improve the Pacific Australia Labour Mobility (PALM) scheme, to support sustainable scheme growth and improve support for workers in line with Australian and Pacific aspirations.