Horticulture News : Australia’s Horticulture Sector Welcomes Budget Relief, But Labour Concerns Persist

NFF Horticulture Council Chair Jolyon Burnett said the Budget reflects several long-standing advocacy priorities of the Council and the NFF, including important wins on tax settings, investment certainty, and supply chain resilience.

"Last night's Budget includes a number of practical measures that will help ease pressure on farm businesses and strengthen Australia's food and fibre supply chains," Mr Burnett said.

"From tax reform certainty to fuel and fertiliser supply security and deferring export cost recovery, these are outcomes we have fought hard for on behalf of farmers across the country."

The Council welcomed measures including ensuring primary production income is exempt from the new minimum tax on discretionary trusts and the permanent extension of the instant asset write off.

The Council also welcomed the Government's explicit focus on improving national productivity.

"The Government's commitment to reduce regulatory burden-estimated at over $10 billion annually-is a step in the right direction and reflects the reality facing growers dealing with mounting compliance costs, whether that's being imposed by government or coming down supply chains" Mr Burnett said.

"We have flagged concerns with the burden, particularly on smaller horticulture businesses, under the Climate-Related Financial Disclosure regime, and so are encouraged by signals in the Budget papers that this framework may be refined and improved.

"At the same time, we are concerned with mooted reform of the Working Holiday Maker program with little detail in the papers.

"The sector remains heavily reliant on this program to meet seasonal and peak labour demand, particularly in regional and remote areas where alternative workforce options are limited.

"Any policy settings that undermine Working Holiday Makers as part of our seasonal workforce mix or fail to direct workers to areas of greatest need, risk undermining harvest capacity, disrupting perishable supply chains and placing upward pressure on food prices."

The Council encouraged the government, despite a tight fiscal environment, to keep an open mind to delivering short-term cashflow relief to growers, who without bargaining power have been unable to pass on escalating input costs.

"Many growers will have only tuned in to watch the Treasurer's speech last night in the hope of hearing some targeted support is on the way," said Mr Burnett.

"We'll continue to work with government and regulatory agencies to ensure our markets are working in the national interest, and that there's a government response for when those markets demonstrably fail."