Cost-of-living crisis: Move to provide food relief for the needy as desperate families struggle

Farmers and small business will get tax incentives for redirecting unwanted food to local charities, under a new bill to be put before the federal parliament by WA Liberal senator Dean Smith. Senator Smith will introduce a private members bill into the federal parliament this month which he says if passed would “provide urgent food relief to those at risk of going hungry as the cost-of-living crisis bites”. “Local food charities are crying out for more food donations to respond to families struggling under the cost-of-living crisis,” Senator Smith. “This Bill will incentivise farmers, meat processors and small business to donate food to charities, which would otherwise end up in landfill. “It’s hard to imagine that Labor or the Greens would not support this.” Under the new tax arrangements, small and medium businesses, including grocery shops and family farms, would be eligible for a 20 per cent cash back on all costs associated with food donations. Larger operators would receive a 10 per cent credit on their tax bill. The tax donation would not apply to individuals. It would mean that instead of throwing away surplus or imperfect produce, farmers and others would be incentivised to give it to charities, like Foodbank. “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.” According to Foodbank, 7.6 million tonnes of food is being wasted by the nation each year – 70 per cent of it able to eaten. 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.”