Biosecurity levy draws criticism from horticulture, agriculture groups

Online shoppers and passengers leaving Australia will also help spot the bill, which is expected to provide biosecurity with baseline funding of around $268 million annually.

The $1 billion, which is spread out over four years, delivers Labor's election commitment to deliver a long-term sustainable funding model for biosecurity.

The funding was announced in the 2023/24 federal budget earlier this month.

From July 2024, farmers will see an increase in fees "set at a rate equivalent to 10 per cent of the 2020-21 industry-led agricultural levies", which is expected to raise $153 million over three years.

International deliveries of "low value cargo" - which are items valued at $1000 or less - will also be hit with a new biosecurity levy, which is expected to be around 40 cents per item.

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The new measure is expected to reap $81.3m over three years.

The Passenger Movement Charge will increase by $10 from mid-next year and will apply to all passengers departing Australia.

Agriculture minister Murray Watt said although the government was footing most of the bill, to provide ongoing funding some of the costs had to be offset, including the "modest" biosecurity protection levy on primary producers.

"We are locking in higher and more certain biosecurity funding, along with a fair system to pay for it that shares the cost equitably between taxpayers, importers, parcel senders, international travellers and producers," Mr Watt said.

"[We are] drawing a line under years of stop gap, temporary funding from coalition governments, that placed our agriculture sector at risk.

"The new system that will be more predictable, equitable, transparent and accountable than ever before."

Larger importers are expected to contribute $350 million to biosecurity costs next year, following an increase in fees and cost-recovery chargers.

The government will also explore introducing a broader biosecurity import levy that is consistent with international trade law obligations.

Of the $1 billion, $845m will go towards maintaining and improving the biosecurity operations and $145.2m will streamline biosecurity services with modern digital systems.

Finance minister Katy Gallagher said the government committed a $127m one-off-payment to "bail out" the Department of Agriculture, Fisheries and Forestry, which was staring down the barrel of multi-million-dollar deficit, due to insufficient biosecurity cost recovery measures.

AUSVEG'S frank assessment of the budget was that it was "disappointing for growers as it did not adequately address critical issues that are impeding the industry's capacity for growth".

"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," an Ausveg statement said.

An Australian Banana Growers' Council communique said the new levy would add to the already significant financial strain facing many growers right now.

"In addition, any new biosecurity levy would essentially mean slugging banana growers twice, as they already contribute money to fund banana specific biosecurity activities," it said.

The Australian Fresh Produce Alliance (AFPA) gave a generally positive reception to the biosecurity levy announcement, saying it had consistently advocated for increased funding for biosecurity from general revenue to reflect the shared benefits of a strong biosecurity system.

However, AFPA chief executive officer Claire McClelland said farmers should not bear the brunt of the cost.

"All Australians benefit from a robust, efficient, and effective biosecurity system," she said.

"While we would like to see the balance of funding shift further to properly reflect the shared benefits of a robust biosecurity system, the additional funding is welcome and will strengthen Australia's biosecurity to help ensure our nation is better protected.

"We encourage the government to continue to increase funding as required to address the new and evolving risks, as we simply cannot afford for Australia's biosecurity system to become compromised."

There was a similar response from vegetablesWA CEO Stephen Brown who welcomed the focus on biosecurity as critical for the industry, but saw the call for a biosecurity levy on growers as "a fail".

National Farmers' Federation president Fiona Simson said the move to have farmers foot the bill was a bitter pill to swallow.

"We're already significant financial contributors. What's more, we bear the cost of managing historical pest and disease incursions and face the enormous threats posed by pests and diseases on our doorstep," she said.

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