The federal government has decided to defer the phased transition to full cost recovery for export regulatory services for one year, established a new Fertiliser Supply Working Group, and brought forward $6.15 billion in concessional capital to support Australian businesses affected by global disruptions.
A new cost recovery arrangement for export regulatory functions was initially announced in December, expected to kick in from 1 July 2026. Considering the rising prices driven by conflict in the Middle East, affecting farmers, fishers and producers, the federal government stated this process will be pushed back until 1 July 2027.
The decision was welcomed by the Australian Meat Industry Council (AMIC), which has raised serious concerns since the initial announcement about the decision to charge export businesses for a greater suite of government activities and significantly increase fees and charges to cover the rapidly expanding costs in the Department of Agriculture, Fisheries and Forestry (DAFF).
AMIC CEO, Tim Ryan, said the announcement is a reflection of the organisation's work, to ensure that the challenges faced by Australian meat businesses are known and heard by the government.
“While AMIC welcomes the 12-month delay, we remain committed to working with government to drive agricultural productivity, particularly through efficient trade and access to overseas markets,” said Ryan.
“In this respect, AMIC reaffirms our call for an independent review of DAFF’s cost base to be carried out during this transition period to provide transparency and prioritise areas to drive productivity in regulatory services.”
The National Cabinet also made the decision to halve the fuel excise on petrol and diesel, and reduce the Heavy Vehicle Road User Charge to zero for three months, from 1 April to 30 June.
Fuel excise will be reduced by about 32 cents per litre, with the Australian Competition and Consumer Commission (ACCC) warning fuel retailers to fully pass on cuts as quickly as possible.
ACCC chair, Gina Cass-Gottlieb, said on 2 April that the organisation was pleased to see that several retail sites have already dropped fuel prices and passed on savings to customers, and the ACCC will continue to monitor prices.
“We made it very clear to the major fuel companies that we expect to see them pass on the full cut in the fuel excise to consumers without delay,” said Cass-Gottlieb.
“Businesses must not mislead consumers about their prices. The ACCC will take appropriate action against breaches of Australian Consumer Law, such as misleading consumers about surcharges.”
The federal government has released a National Fuel Security Plan to coordinate a consistent response across states and territories.
Maintaining agrifood production
Aside from fuel and diesel, fertiliser is a critical import for the Australian agrifood industry that has experienced surging costs and supply constraints due to the blockade of the Strait of Hormuz.
According to the Observatory of Economic Complexity (OEC), Australia imported $3.81 billion of fertilisers in 2024 – estimated to be between 70-90 per cent of total consumption – with key supplies coming from Saudi Arabia, the United Arab Emirates, and Qatar.
The federal government has established a new Fertiliser Supply Working Group to mitigate the impact on farmers and producers, which will include representatives from key government agencies and industry organisations Fertilizer Australia and the NFF.
NFF President Hamish McIntyre said the package of measures provides welcome breathing space for farmers and exporters facing sustained input cost pressures and market uncertainty.
“These are practical decisions we’ve called for that will deliver more certainty for farmers and exporters at a time when margins are under real pressure,” said McIntyre.
“It reflects the realities facing agriculture right now, including the difficulties in securing critical inputs like fertiliser, which are needed for food production.”
The working group aims to improve the availability of fertiliser by amending legislation to underwrite purchase by the private sector, working with the ACCC to monitor and coordinate supply, and jointly engage with alternative suppliers.
Minister for Agriculture, Fisheries and Forestry, Julie Collins, said the government was working day and night with Australia’s farmers, fishers and producers to help manage impact from the Middle East conflict.
“Our farmers and producers feed millions of people both here and abroad, but events like the conflict in the Middle East reaffirm why we cannot be complacent,” said Collins.
“That’s why we’ve taken immediate action to help safeguard Australia’s food production system, and to support our farmers and producers – including to help get fuel and fertiliser into our regions. We recognise the disruption the conflict in the Middle East has had on our farmers and producers, which is why we are deferring the commencement of the phased transition to full cost recovery for export regulatory services for one year.
“Our government will never leave farmers behind who are facing hardship,” she said.
Financial support opportunities
Several funding pathways have also been made available to support farmers and producers, including the new Drought Hardship Loan for those impacted by prolonged drought, delivered through Regional Investment Corporation.
The government has also brought forward $6.15 billion in concessional capital to support Australian businesses, through three sub-funds of the $15 billion National Reconstruction Fund. The $1 billion Economic Resilience Program (ERP), $5 billion Net Zero Fund, and $150 million in concessional finance under the Forestry Growth Fund will open shortly.
The ERP will provide zero interest loans to fuel, fertiliser and other critical supply chains businesses to support Australia’s domestic industries and supply chains impacted by market disruptions.
Originally on track to open mid-year, the $5 billion Net Zero Fund will open sooner to support new manufacturing investment and improvement of energy efficiency in hard-to-abate sectors. This includes scaling domestic manufacturing capabilities in clean energy supply chains – such as wind, solar and energy storage solutions – and the production of low carbon liquid fuels.
The $150 million Forestry Growth Fund will support timber processing for use in housing construction and investment in mills and processing facilities to move up the value chain.
Minister for Industry and Innovation and Minister for Science, Tim Ayres, said investing in Australian industry is about making Australia stronger.
“Businesses right across the country in dozens of industries are under severe pressure because of unprecedented events overseas,” said Ayres.
“By bringing forward $6.15 billion in capital, the National Reconstruction Fund can more quickly support businesses to increase production, capability and capacity. This will help them to navigate global supply chain disruption and make sure Australia has more of the things it needs.”
