Officially known as the Biosecurity Protection Levy, the Coalition Government moved a motion in Senate last week to remove the tax.
Leader of The Nationals David Littleproud said it secures a “huge cost-of-living win” for farmers and families.
“Labor’s fresh food tax would have hurt families at the checkout as well as 84 agricultural commodities, which faced taxes to raise $150 million over three years, to pay for the risks created by their competitors, which is those importing from overseas,” Mr Littleproud said.
“Labor’s senseless and terrible tax idea will thankfully never see the light of day, after an enormous campaign by The Nationals in conjunction with industry and farmers to stop its reckless fresh food tax.
“The Coalition is proud to have saved families and farmers from this bad fresh food tax, which would have increased food prices even further and hurt our farmers even more.
“In what parallel universe would a government charge its own farmers to pay for the biosecurity risks their competitors are creating?
“It was senseless when better alternatives were offered by The Nationals, such as an importer container levy, which would charge importers, not our own farmers, to pay for biosecurity risks being created as produce comes into the country.
“However, Labor and the Greens haven’t ruled out taxing Australian agriculture and farmers in the future – the Coalition calls on them to do so, immediately.”
Senator the Hon Bridget McKenzie moved the motion and said The Nationals have delivered an “embarrassing defeat” to the government on the floor of the Senate, removing a tax she says Labor should never have proposed.
“Not only would this tax have driven up the price of fresh food, with farmers forced to pass on costs, it would have also undermined the entire levy system, causing chaos and confusion across industry,” Senator McKenzie said.
“Families need food that is more affordable and our farmers need support to get food from paddock to plate.
“While Labor tried to introduce the exact opposite, The Nationals will always fight for common sense, for fairness, and affordable food and fibre.”