Food relief bill hits political roadblock

Smith’s comments follow the government’s refusal to endorse a proposal widely supported by the not-for-profit sector, designed to change the nation's tax system to discourage dumping food in favour of donating it to those in need.

Senator Smith put forward the draft legislation as a Private Senator’s Bill with the support of food relief organisations including SecondBite, OzHarvest and Foodbank.

Last week the Labor dominated Senate Economics Committee handed down its report into the Bill, in which it raised several concerns over the detail of the proposal and said it would not recommend it be passed in the Senate.

Senator Smith issued a dissenting report in which he defended the measure and later accused the government of putting politics before hungry Australians.

“Labor has abandoned vulnerable households and the food relief charities supporting them as Christmas fast approaches,” said Senator Smith.

“The Albanese Government signalled it would reject proposed legislation incentivising food donations and reducing waste at a time when both are desperately needed.”

Food relief agencies have released multiple research reports highlighting the impact of the cost-of-living crisis on the ability of many Australians to feed their families.

A recent study by YouGov found six out of ten cash strapped Australians – 14 million people – were forced to choose between buying food and paying other expenses at some time over the past six months.

It is estimated more than 7.6 million tonnes of food, most of it fit for consumption, is dumped annually because it is cheaper than donating it.

To address this challenge, Senator Smith’s Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) Bill 2024 outlined tax offsets for expenses incurred through donations to food relief charities.

“In opposing it (the Bill) Labor has ignored both years of advocacy for a food donation tax incentive and the recommendations of multiple Senate inquiries – including those run by its own committees,” said Senator Smith. He said Labor had not only failed to act but is blocking the efforts of those trying to.

“The Albanese government’s position is at odds with the overwhelming support received from stakeholders and a witness who appeared at a Canberra public hearing into the Bill last month, during which food relief charities and industry organisations stressed the urgency of delivering the tax incentive,” said Senator Smith.

“They observed the “game-changer” potential of the Bill, and its ability to support struggling households, charities fighting to meet demand, and farmers and other primary producers battling Labor’s cost of doing business.”

OzHarvest CEO James Goth said he was extremely disappointed to learn that the committee has recommended the Bill not be passed at a time when the need for food rescue and relief is so critical.

“Independent modelling shows the Bill could get the equivalent of 100 million meals per year off farms and onto plates,” said Goth.

“Let’s not forget that similar incentives are already proven and effective in countries such as the United States, Canada and France.”

Goth said that as well as having broad support across the food supply chain and social services, the National Food Donation Tax Incentive has also been recommended in the Cost-of-Living Inquiry, also released last week.

“We urge decision-makers to support this no-brainer Bill to fight food waste and support the 3.4 million households made to experience food insecurity in this country.”

Foodbank Australia CEO, Brianna Casey also lamented the lack of bipartisan political support for the tax incentive plan, which she described as a blow to the efforts of food relief organisation’s to provide consistent, nutritious food for millions of people experiencing food insecurity.

“At a time when 3.4 million Australian households are struggling to put food on the table, this decision is not just perplexing but disheartening for hardworking farmers and growers who desperately want to do more to help get food on the tables for those doing it tough.

"We urge the federal government to adopt the tax incentive which would deliver an immediate increase in healthy food to struggling families' weeks out from Christmas,”

The Senate Economics Committee highlighted several concerns with the bill, including:

• fears it would favour larger companies such as supermarkets, large food manufacturers and large established food relief organisations as the primary beneficiaries of generous tax concessions and supports
  

• the Bill’s generous tax concessions and refunds include donation activities already occurring, potentially leading to no additional food being donated
  

• concerns many small businesses, family farms and food relief charities would be unable to claim or benefit from the Bill’s incentives
  

• that the Bill is counter to the bipartisan goal to reduce national food waste, by creating a financial incentive for the over production of food
  

• the Bill includes no guardrails to prevent the dumping of poor-quality foods.

Senator Smith however said the Coalition had indicated it was open to amending the draft legislation to reflect some of the concerns raised.

Charities Minister Andrew Leigh pushed back against Senator Smith’s criticism, saying Labor strongly supports the valuable work of food relief organisations, announcing almost $20 million in additional funding since the start of the year.

He said the Senate economics Committee looked at the Bill closely and its report raises a number of concerns.

“We know that the Coalition would prefer to provide tax breaks to big businesses rather than direct support for food relief charities.”

“After a war on charities under the former Government. Labor has backed charities through direct support for the vital work that they do.”

More information

Donate food, don’t dump it: push for tax incentives