The VFF has made a formal proposal to Federal Treasurer Jim Chalmers and Federal Agriculture Minister Julie Collins, calling for a one‑off payment to be calculated based on the diesel fuel tax credits, or FTCs, farmers have already claimed over the past year.
The call follows the latest inflation figures, which show fuel prices climbed more than 30 per cent in March.
Farmers already receive FTCs meaning that they did not benefit from the temporary fuel excise that started in April, running at a cost of $2.55 billion to the federal budget.
VFF acting president Peter Star said the proposal would ensure fairness, supporting farmers at a time of high input costs.
“Every single one of our farm input costs are skyrocketing and it’s fast approaching unsustainable levels for many farmers,” Mr Star said.
“Support at the farm gate can help keep farmers farming, and that flows down through the supply chain and into the hip pocket of consumers at the checkout.”
Based on ATO data, a grain grower who consumes about 75,000 litres of diesel annually could receive roughly $40,000 under the proposal.
“Farmers are crying out for support. We recently polled our members, and they told us they are facing price hikes for inputs in the hundreds of thousands of dollars,” Mr Star said.
“This proposal aims to target support to help ensure these hikes don’t inevitably end up hitting consumers.”
VFF said the payment would recognise the importance of Australian farmers and the role they play in the wider economy.
