Farmers and regional Australian residents will initially feel the most sting from the Federal Budget but that will also extend to city dwellers in due course
It’s always a two-way split when a budget is announced, there are the Collins and Pitt Street cockies that are cocooned in warm velvet surroundings with a drop of the good stuff whenever they desire, and then there is the bush.
What suits any one of these distinct living styles is never any good for the other, and that is the case with the 2023 Albanese government’s first formal budget, as opposed to the mini-budget brought down by the somewhat fledgling government at the time on 25 October 2022.
It was always suspected that the Albanese Federal Labor Government would show little sympathy to the bush, after all the man himself is a devout city slicker, and as part of his upbringing was dependent on social security as a means to meet ends.
While on the farm, they are a more determined mob, fiercely independent and able to look after themselves.
But since the Albanese government has taken control, the credits built-up with the former Liberal-National party coalition has meant little when it comes to looking out for farmers.
Tax hit on farmers $150 million and counting
The Albanese Federal Labor government’s Budget has completely ignored the benefits farmgate production gives to the country with $65 billion in exports, all gained with some very costly inputs out of the pockets of local farmers.
But that’s okay, farmers understand their role. But what many will not understand is why the Albanese government has dug deep into their pocket to make them fork out an estimated $150 million and even more over the next three years to pay for biosecurity.
There has been an obvious pattern, confirmed when the Albanese Federal Labor Government axed the $54 million pilot Soil Monitoring Incentives Program (SMIP) that many farmers were planning to take up and improve their properties.
Cut by the almost invisible Minister for Agriculture and Emergency Management, Murray Watt, early in 2023. A program he had recognised just weeks before was important for the agriculture industry.
If any farmer is upset about paying for the country’s biosecurity, sorry it doesn’t end there.
Farmers can expect to pay at least another 6% on any cartage costs to move their produce and livestock around and for that matter any goods they buy in future as truckies have been hit with a tax they must pass onto customers.
The heavy vehicle road users’ charge is being raised by 6% a year for the next three years. That represents a levy jump from 27.2 cents a litre to 32.4 cents by 2025-26, all costs that will be borne by farmers and rural residents where road delivery is essential.
And in a major blow for farm equipment purchases, there was no extension to the instant asset write-off for businesses to claim an immediate deduction for certain costs relating to depreciating assets.
It was expected the Federal Budget would introduce temporary measures to build on the instant asset write-off previously in place until 30 June 2023, but that has not eventuated.
Farmers have spent-up big, taking the chance to update machinery and equipment. With deduction claims able to be made for the year in which the equipment is used or installed and ready for use.
With no extension to the scheme, it is expected many farmers that have placed orders will miss out on the instant asset write-off as the equipment has to be delivered and used by 30 June 2023, a situation not possible for many due to factory and shipping delays.
From important to also rans
All these extra costs levied on farmers and rural residents will eventually make their way to the big city in the form of an unspoken additional food tax on Australian families, already in the middle of a cost-of-living crisis.
The Nationals leader David Littleproud takes up the cause, “The new tax on farmers to pay for the biosecurity risk of international importers was senseless and would be passed onto consumers, which meant even higher grocery bills for all Australians.
“It is unfathomable the Labor Government would ask farmers to pay for the biosecurity costs of importers from other countries,” David Littleproud stressed.
“The Coalition proposed a cost recovery model that importers would pay commensurate to the risk provided, rather than farmers, and the model was ready for implementation before the end of last year.”
The Albanese government is also increasing the road user charge on truckies by 6%, compounding each year, that will add to grocery bills for families, because transport companies can’t absorb that cost.
Regional Australia will also bear the costs of further cuts to regional infrastructure.
On top of kicking water projects into the long grass, Labor has put a razor gang to the $120 billion infrastructure pipeline, putting all regional programs in doubt.
“Not only is the Albanese government making us pay for their spending, but they are also taking away our future by ripping away the tools we need to produce more and get it on your table cheaper,” David Littleproud added.
Labor will also force local communities to wait two years to access regional grant programs, with funding that was available in 2022 under the Coalition now delayed until well into 2024.
“Labor has pushed back critical funding needed for regional communities, while only targeting projects worth more than $1 million. It means smaller projects like sports ovals, playgrounds and libraries will be ineligible for funding in most communities,” David Littleproud continued.
“Ripping up or delaying investments in roads, rail, bridges, dams and community facilities, while increasing costs on heavy vehicles and taking away regional grants programs, is not how we build a more prosperous, stronger and sustainable Australia.”
Chronic shortages in access to health services
Health access in the regions has been neglected through Labor’s failure to invest in bespoke initiatives to deal with shortages in medical professionals.
“Labor’s changes to the Pharmaceutical Benefits Scheme (PBS), allowing 60-day dispensing instead of 30, also risks unintended consequences, such as rural medicine supply shortages and country pharmacists being forced to shut down,” David Littleproud explained.
Regional areas struggle to find accessible GPs, but Labor is committing just $4.5 million over five years to train rural GPs through its Single Employer Model trials.
“Labor is throwing crumbs at increasing access to GPs for rural families.”
A worsening childcare crisis
Labor’s policies have failed to introduce one single new childcare place across the country.
David Littleproud said while affordability was impacting families, regional, rural and remote Australia also needed availability.
“Regional mums and dads have not been treated fairly. There is no improvement in regional childcare. Labor has failed to create one new childcare place, leaving regional, rural and remote mums and dads no better off. Labor’s failure to help regional parents has left them behind,” David Littleproud concluded.
