What does the Federal Budget 2013 mean for Agribusiness?

Agribusiness has emerged as a net beneficiary of the budget, with the diesel fuel tax rebate – speculated as an area of possible cut prior to the release – remaining intact. That said, the overall gains are rather modest.

By

Agribusiness has emerged as a net beneficiary of the budget, with the diesel fuel tax rebate – speculated as an area of possible cut prior to the release – remaining intact. That said, the overall gains are rather modest.

By agricultural sector, the largest spending has been on forestry, with the Government committing over $330 million to support the historic Tasmanian Forests Agreement.

More generally, the government has recognised the adverse impacts of the recent drought on farmers’ finances and their families, prompting them to announce a package of measures to support and assist farmers experiencing acute levels of debt, and setting up a fund under National Drought Program Reform to support farming families in times of hardships.

Key initiatives

  • $420 million Farm Finance package to alleviate debt pressures and provide targeted financial assistance to farmers, through max $165,000 concessional loans ($210 million 2013-14 and $210 million 2014-15).
  • $99.4 million Farm Household Allowance to support farmers in hardship under National Drought Program Reform.
  • $25.4 million National Monitoring System for Agricultural Chemicals Residues in Food ($5 million in 2013-14).
  • $750,000 boost to Rural Financial Counselling services in flood affected regions in QLD.

Status quo

  • $2.1 billion over five years for Caring for our Country ($200 million in second phase of Reef Rescue program over five years, starting 2013-14).
  • $238.2 million commitment to RD&E funding for relevant research and development corporations.
  • $379.9 million for construction of a state-of-the-art post-entry quarantine facility (announced in 2012-13 budget).

For further analysis download the fact sheet.

Our team of leading economists, tax and superannuation experts will continue to unpack Federal Budget 2013 to understand what it means for you.

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