Canberra's Legislative Wins Bring Relief to Australian Dairy Farmers

As the summer season descends upon Canberra, many residents are taking a much-deserved break. Meanwhile, significant legislative developments have provided a reason for celebration among dairy farmers across Australia. Recently, two major victories were secured at the end of the parliamentary year offering much-needed relief to the agricultural sector.

Victory Against the Unrealised Gains Tax

The Australian government’s initiative to introduce a tax on 'unrealised gains' faced major opposition and ultimately failed to pass the Senate. This was seen as a potential threat to farmers whose assets are typically tied up in land and machinery, necessitating the sale of parts of their holdings to cover paper profits taxes. ADF and the National Farmers Federation were instrumental in highlighting the adverse impacts this could have had, calling for an understanding of how this could disrupt investment and retirement planning for those rich in assets but not in liquid capital.

The defeat of this tax represents a triumph for the farming community, ensuring they won't be forced to liquidate vital operational assets, preserving the long-term viability of their businesses.

The Strengthened Food and Grocery Code

An equally crucial development was the passing of amendments to the Food and Grocery Code (FGC). This legislative change reinforces fairer trading practices and extends protections within the grocery supply chain, leveling the playing field for suppliers and offering substantial benefits for dairy farmers.

Throughout the review process, advocacy from the ADF for a mandatory code was proven effective, with the government implementing all 11 recommendations from the independent review led by Dr. Craig Emerson. This code ensures enhanced fairness and balance in trading between suppliers and major grocery chains.

Looking Forward

As this year concludes with such promising news, hope builds for the forthcoming 2025, where further reviews and a Federal Election are on the horizon. This positive shift marks a substantial improvement for the dairy farming industry, setting the stage for increased stability and equitable practices.

By Ben Bennett
President
Australian Dairy Farmers