Could tax perks for donating ‘ugly’ or excess produce help solve Australia’s food waste woes?

Australia’s largest food relief charity wants the federal government to change its tax arrangements so that farmers can get incentives for donating surplus or imperfect produce. 

According to Foodbank, more than 2 million households went hungry at some time in the past year and the cost-of-living crisis is putting growing pressure on grocery budgets.

The organisation’s chief operations officer Sarah Pennell said it cost farm businesses money to transport food donations to a distribution point and that was a big barrier.

“This is just something that the average business, the average farmer cannot bear [the cost of], so the food just goes begging or ends up being ploughed back into the ground or being fed to animals,” she said.

Foodbank wants small businesses, including family farms, to get 20 per cent cash back on all of the costs associated with donating food, and for larger businesses to get a 10 per cent credit on their tax bill.

Ms Pennell said the initiative would cost the government around $50 million.

“We calculate that it would deliver a $2 billion social return to the government and the community,” she said.

Clock ticking on sustainability goal

Five million tonnes of perfectly edible food is wasted in Australia each year, according to Foodbank.

In 2018, Australia committed to halving food waste by 2030 — a sustainable development goal set by the United Nations.

Ms Pennell said the clock was ticking.

“It’s only seven years away, so a lot needs to be done and we think this initiative could really contribute,” she said.

Similar incentives are already used in the United States, Canada, France, and the Netherlands.

“We are seeing tax incentives as the single most effective way to motivate businesses to redirect their waste, giving them both the incentive and the support to be able to do it,” Ms Pennell said.