GPA CALLS FOR TAX INCENTIVES TO STRENGTHEN ON-FARM FUEL STORAGE CAPACITY

Grain Producers Australia is calling on the Federal Government to prioritise tax incentives to boost on-farm fuel storage capability for Australia’s farmers. 

Producers currently navigating fuel supply disruptions and facing an anxious wait for fertiliser to be imported ahead of the upcoming sowing season, need strong signals of support from the Federal Government. 

Grain Producers Australia (GPA) and its State Farming Organisation (SFO) members continue their joint calls for policy and investment into domestic supply and manufacturing of critical inputs, as global conflict and fuel prices continue to impact our country. 

GPA Chair Barry Large said giving grain producers some power to afford on-farm storage of fuel with government support would offer some protection for the industry and reduce pressure on the supply chain should future issues arise. 

Mr Large said extending existing schemes that allow accelerated depreciation for investment in items such as water infrastructure, fencing, feed storage and other drought-proofing assets was a simple but effective measure. 

“Ensuring we can manufacture and supply our own fuel and fertiliser needs should be a priority for Australia, but in the short-term, tax incentives are a simple option that can make a big impact,” Mr Large said. 

“Giving producers support to store fuel so we can become less reliant on local availability will assist in reducing pressure within the industry and across the entire supply chain in peak periods such as sowing and harvest when fuel access is vital.” 

The shockwaves from escalating conflict in the Middle East continue to impact fuel prices in Australia and leave regional areas without fuel supply for undetermined periods as demand for fuel has quadrupled around the country. 

“Australians are anxious about being unable to access fuel and we’ve all seen the images of people stocking up, but this pressure has meant the regional supply chain can’t keep up,” he said. 

“Our $26 billion industry is entirely reliant on producers being able to put the crop in the ground from April onwards and without fuel, our vehicles will sit still in the yard. 

“Allowing us to store fuel with government assistance to support this cost is a confidence boost for growers, and an insurance policy for 2026-27 grain production season.” 

State governments are holding industry roundtables this week to discuss the issue as the situation evolves but are limited as to how they can act in this space.

Meanwhile, GPA believes the Federal Government needs to explore options to alleviate the flow on effects of ongoing supply issues as a priority. 

GPA’s policy priorities, released for the 2025 Federal Election as a yardstick for grains industry priorities for this term of government and highlights the importance of productivity, economic resilience and budget sustainability. HERE 

These policy priorities highlight the importance of a Federal Government acting with the foresight to look beyond these crises and put in place the reforms needed to strengthen the long-term foundations of Australian agriculture and protect our national food production. 

ENDS 

Further Information: 

GPA Chair Barry Large: 0427 549 023 

GPA Executive Officer Rachael Oxborrow: 0416 705 193