2022-23 Federal Budget Analysis for Western Australian Farmers and Agribusinesses
Western Australian farmers and agribusinesses have responded to the 2022-23 budget with mixed reactions. While there’s support for growers looking at carbon and biodiversity, many are questioning the government’s commitment to freight corridors, input supply chains and biosecurity.
2022-23 Budget Key Areas of Focus for Agriculture
Sustainability: Carbon and Biodiversity
From 1 July 2022, Australian Carbon Credit Units (ACCUs) and biodiversity certificates will be re-classified from off-farm income to primary production income, which will have the effect of reducing the rate of tax paid.
Farmers are continuing to be encouraged to undertake carbon projects. The development of the Biodiversity Stewardship Trading Platform will make it easier for farmers to participate in biodiversity activities by assisting farmers to plan their projects and sell biodiversity and carbon outcomes to the private market. Round 2 of the Carbon + Biodiversity Pilot has recently closed, with farmers in the Great Southern region of Western Australia eligible to participate in this round.
The government is also investing $23.4 million over 4 years to extend the patent box regime to the agriculture sector in an aim to boost local plant breeding, agricultural and agvet chemical innovation and commercialisation, and ensure it remains in Australia.
Exports
A $267.1 million trade modernisation package called the “Simplified Trade System” will improve competitiveness in international markets. The system will streamline trade processes, reduce the cost and time of exporting and make it easier for agribusinesses to compete internationally.
Biosecurity
$91.7 million has been committed to boosting our northern biosecurity frontline, uplift on on-farm biosecurity and respond to emerging biosecurity threats, with an early focus on lumpy skin disease. $10 million has also been committed to protecting agriculture from Japanese encephalitis via state and territory agriculture departments.
National Farmers Federation (NFF) CEO Tony Mahar believes the budget fails to deliver sustainable funding to modernise and grow Australia’s biosecurity system, and a $15 million investment into lumpy skin disease in 2023 financial year is inadequate given the serious risk to international market access.
Infrastructure
The Energy Security and Regional Development benefits the Pilbara region with $1.5 billion over 11 years to support mining, mineral processing, manufacturing, hydrogen and renewable energy.
$1.3 billion telecommunications package over six years will improve mobile towers on key transport routes and expand fixed wireless.
Other
Drought and flood resilience
$84.5 million has been committed to drought resilience programs over the next four years. Alongside the $100 million per year expenditure under the Future Drought Fund, the government are targeted on improving drought readiness of Australian farmers and communities.
Regional Accelerator Program
A new Regional Accelerator Program (RAP) will be established. The RAP will provide $2 billion over five years for economic growth and productivity in regional Australia.
Exports
A $267.1 million trade modernisation package called the “Simplified Trade System” will improve competitiveness in international markets. The system will streamline trade processes, reduce the cost and time of exporting and make it easier for agribusinesses to compete internationally.
Summary
For supplementary information on the 2022-23 federal budget and its impact on grain growers, download the GrainGrowers media release.
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