Mortgages, rents, power and grocery bills continue to soar under Labor.
In light of the challenging circumstances facing many Australian households, Senator Dean Smith is calling on Labor and the Australian Greens to support a Private Senator’s Bill that could alleviate some of these pressures.
The proposed Bill, which Senator Smith intends to introduce on behalf of the Coalition, would provide the food industry with a tax incentive to donate surplus food to Australians in need.
It gives effect to an initiative that has long been championed by Foodbank Australia and its supporters, aimed at providing urgent food relief to those at risk of going hungry.
Foodbank reports two million Australian households were unable to consistently put food on the table during the past year, while 38% of food insecure households are not receiving the formal food support they require.
The new Bill would feature a two-tiered tax incentive model that was developed by KPMG.
Small and medium businesses, including grocery shops and family farms, would be eligible for a 20% cash back on all costs associated with their food donations.
Larger operators would receive a 10% credit on their tax bill.
The tax deduction would not apply to individuals.
It follows the effective use of food donation tax incentives around the world, including the United States, France, Canada and the Netherlands.
In addition to promoting sustainability and supporting small and medium businesses, the Bill’s other major objective is to crack down on Australia’s alarming rates of food waste.
Foodbank reports that 7.6 million tonnes of food are being wasted by the nation each year – 70% of it able to eaten.
Senator Smith said the Bill’s introduction could not be timelier.
“This pointless wastage across Australia is happening as food stress becomes increasingly widespread, affecting more and more households and communities,” Senator Smith said.
“It makes absolute sense to introduce an incentive that tackles both these issues simultaneously – and one that it is both fast-acting and straightforward.
“This is a well-considered, much needed policy, a win for all concerned, and should be implemented as soon as possible.
“I call on the Albanese Government and the Australian Greens to help make that happen when the time comes.”
Foodbank Australia Chief Operating Officer Sarah Pennell said the incentive has the potential to provide the equivalent of 100 million meals a year.
“Because it is often cheaper to dump food than donate it, cost is a main reason why businesses fail to donate excess and imperfect stock to charity,” Ms Pennell said.
“The current tax system misses an opportunity to support businesses, like farms, to recover some of their costs of donating wholesome but unsellable food.
“Furthermore, a tax incentive is a cost-effective policy because the government only pays it when the food is donated.”
