The Australian Food and Grocery Council (AFGC) has called on the federal government to take decisive action in the 2026–27 Budget to support Australia’s food and grocery manufacturing sector. It warns targeted policy reform is needed to unlock productivity gains, regional jobs, and long-term growth.
In its 2026–27 pre-Budget submission, the AFGC said food and grocery manufacturing remains the nation’s largest manufacturing sector, generating $173 billion in turnover in 2023–24 and employing almost 300,000 Australians, with more than one-third of jobs located in regional areas.
The sector also invested $3.8 billion in capital over the year, underlining its ongoing commitment to innovation and expansion.
The submission sets out a suite of priorities aimed at strengthening the sector’s competitiveness and resilience. These include extending and enhancing tax incentives such as the Instant Asset Write-Off and accelerated depreciation to stimulate investment and lift productivity, alongside measures to address skills shortages through a national skills audit and targeted regional employment grants.
The AFGC also called for stronger supply chains and infrastructure, citing the need for improved coordination, regulatory harmonisation and national resilience planning. On trade, the council urged continued government support to help manufacturers navigate global trade challenges and accelerate progress on free trade agreements with the European Union and India.
Regulatory reform and innovation feature prominently in the submission, with the AFGC advocating for streamlined, risk-based approvals, digital supply chain adoption, and consistent national enforcement of food standards.
The council also highlighted opportunities to advance health, nutrition and sustainability outcomes through nutrition literacy initiatives, SME reformulation support, digital labelling and circular economy measures.
AFGC chief executive, Colm Maguire, said the submission focused on practical, high-impact reforms rather than broad-based spending.
“This is not about throwing money around. It’s about targeted investment that lifts productivity, strengthens regional economies, and delivers high-return outcomes for Australia,” Maguire said.
“Food and grocery manufacturing is not just about providing everyday essentials to Australians – it is a cornerstone of our economy and a major source of jobs, particularly in regional communities.
“Our submission outlines practical, sector-wide reforms that will benefit the entire nation, supporting productivity, innovation, and economic resilience,” he said.
The AFGC said timely action in the 2026–27 Budget would be critical to ensuring Australia’s food and grocery manufacturers remain competitive in an increasingly complex global and domestic operating environment.
AFGC’s submission is here.
