Australia’s $88b agriculture industry ‘underwhelmed’ by Federal Budget allocation of less than $50m for sector

Australian agriculture has been left underwhelmed with Labor’s Federal Budget, but industry leaders hope more cash will be splashed during the Federal election campaign. Less than $50 million was set aside for the nation’s agriculture industry — worth $88 billion last year — when Treasurer Jim Chalmers handed down his fourth Budget last week. Dr Chalmers said the Albanese Government would pursue a “fair go for families at the checkout and farmers at the farm gate”, and “crack down on supermarkets” to boost competition. But National Farmers’ Federation president David Jochinke said the Budget — which was largely built on modest tax cuts, the extension of electricity bill rebates and a boost to bulk-billing incentives — fell well short of the investment needed to “unlock agriculture’s full potential”. “Farmers are grappling with major geopolitical, environmental and societal shifts. We need a sharper focus from Government to ensure we keep farmers farming, and keep food affordable for Aussie families,” he said. “As we shift into election gear, the NFF is strapped in and focused on the road ahead. We will make sure agriculture’s needs don’t fall off the back and into a pothole.” The treasurer reported a $27.6b deficit for the 2024–25 financial year, which is forecast to increase to $42.1b by 2025-26, with ongoing deficits expected in future years. Gross debt is projected to surpass $1 trillion during 2025–26, adding pressure on subsequent Budgets to manage rising interest payments. The Budget contains $17.1b in new infrastructure funding around the country over the next decade, but the only major WA project included was $350m to widen the Kwinana Freeway. In regional spending outside of agriculture, there was no Statewide cash package to repair WA’s regional road or rail networks despite hopes for funding to boost grain on rail. Federal Transport Minister Catherine King said the Albanese Government had boosted support to local councils by doubling Road to Recovery funding to $1b per year. A $606m package over four years is aimed at training more general practitioners — with 50 per cent of additional GP trainee placements assigned to regional Australia. There was also $6.8m set aside to maintain international market access for agricultural goods during the next year at a time when Australia’s meat, wine and grain sectors were anxious about the threat of US tariffs. The Budget also set aside nearly $24m over three years for regional trade events, including a doubling of funding for Beef Australia to $12m. The Government is committing $43.5m over five years — including $16.3m in the coming financial year — aimed at “fostering wellbeing” and strengthening community resilience in the sector as part of its live export ban transition support package. WAFarmers president Trevor Whittington said the Budget was disappointing at best. “This Budget offers a tax cut the size of a sandwich, then sends you into an outback of endless debt with nothing but a warm water bottle and a fiscal mirage on the horizon,” he said. “WA’s (telecommunications) blackspots program is the big winner, jumping from $16.8m to $18.4m over three years. That should buy us two more towers . . . across the entire State.” GrainGrowers CEO Shona Gawel said the Budget missed the chance to deliver regional investment opportunities that would strengthen grain-growing regions. “This Budget fell short of delivering the bold investments needed to unlock the full potential of the grain industry — particularly in critical areas like infrastructure, trade diversification and supply chain resilience,” she said. “But we remain optimistic that the upcoming Federal election will bring a renewed focus and stronger commitments to regional Australia and the growers who underpin our food security and export success.” The instant asset tax write-off has become a political football, with Opposition Leader Peter Dutton promising to make the arrangement permanent and increase it to $30,000 if elected. The existing $20,000 measure was not extended in the Federal Budget, with the arrangement due to expire on July 1 and revert to just $1000 for businesses with revenue up to $10m per year. Budget documents showed the production value of agriculture, fisheries and forestry was projected to be worth $98b in 2025-26 — the third highest on record — with about 70 per cent of goods exported.