Submissions on proposed tax changes to encourage companies to donate excess food rather than dump it must be in by close of business today, Tuesday, 20 August. The Incentivising Food Donations to Charitable Organisations Bill 2024 was tabled in the senate by West Australian senator Dean Smith earlier this month.
The bill is currently being reviewed by the Senate Economics Legislation Committee.
The legislation would change Australia’s tax system to encourage the donation, rather than dumping, of food. It has the potential to deliver millions of extra meals a year to those experiencing food insecurity, as well as helping the country reach its bipartisan commitment to halve food waste by 2030.
The bill proposes a tiered system where smaller food businesses would receive higher tax offsets than larger ones.
A company with turnover of $20 million or less would get a 45 per cent offset. From $25-$50 million would be 40 per cent, and $50 million or more would receive 35 per cent.
“The tax offset is capped at the lower of $5 million or a percentage of the costs incurred through food donations based on that company’s aggregate turnover,” Smith said.
Foodbank Australia CEO, Brianna Casey, said demand for food relief continues to skyrocket and the country’s food relief agencies cannot keep up.
“We know that fresh fruit vegetables and protein are in particularly short supply, and we need to ensure that we have got everyday access to these essential items. Right now, the taxation system doesn’t recognise and reward the hard work of our farmers. In fact, it makes it more difficult for us to receive these donations.
“This law would be a game changer. We need to get more fresh fruits, vegetables, and more protein into our communities because the cost-of-living crisis isn't going away. This is a terrific piece of legislation, and we look forward to it being implemented and changing the nature of food relief Australia.”
End Food Waste Australia CEO, Dr Steven Lapidge, said 70 per cent of the 7.6 million tonnes of food wasted in Australia every year is edible.
“This initiative is not just timely but essential. One in six Australian adults and 1.2 million children have gone hungry in the past year.
“The proposed tax incentive addresses food insecurity, dramatically increasing the support for food rescue organisations and ensuring that surplus food reaches those who need it most. It also aligns with the national goal to halve food waste by 2030 and reduce the volume of waste sent to landfills. And businesses will benefit from tax deductions, creating a win-win situation for both the economy and society,” Lapidge said.
Smith said the Parliamentary Budget Office estimated the cost of the bill could be “as modest as $40 million, which is a very good use of taxpayer funds when measured against the huge social benefit that’s delivered.”
Foodbank has created a submission template for people and companies to use.
“You can personalise the submission with your insights and experiences to demonstrate the bill’s potential impact. Even a simple statement of support for the concept would be valuable,” Foodbank said.
