Food donation tax incentive to help Australians struggling with cost-of-living crisis
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.”