Carbon Tax To Hit Australian Farmers

by Mary Swire, Tax-News.com, Hong Kong

26 December 2011

The Australian Bureau of Agricultural Resource Economics and Sciences (ABARES) has released a report showing that dairy farmers are expected to be most affected by the introduction of carbon tax.

The report found that dairy farmers can expect to pay approximately AUD4,000 each as a result of increasing costs. This is mainly a result of increased prices for electricity and heavy vehicle fuel. It is believed that the farmers will feel the effects of these increases from their food processors.

NFF President Jock Laurie explains: “Food processors are facing millions of dollars in higher costs as a result of the carbon tax, particularly through increased electricity prices, and many have said that the only way they can recoup this cost is to pass it on to their suppliers – our farmers.”

While the carbon tax debate was still raging a few months ago, the NFF submitted a report containing its own research that expressed these very concerns. There has been much anger and frustration due to the apparent disregard of this information.

Laurie stated that: “In particular, we are very concerned about the impact of the carbon tax on other parts of the agricultural supply chain, particularly food processors, and what this will mean for our farmers.”

The NFF has asked the government to make the exclusion of heavy vehicle fuel from the carbon tax permanent and to give the processing sector more assistance in order to alleviate the impact of carbon tax on farmers.

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