Foodbank Australia, KPMG Australia and the Fight Food Waste Cooperative Research Centre (CRC) are calling on reforms to Australia’s tax framework to incentivise food donations from businesses to food relief organisations as part of the inaugural United Nations International Day of Awareness of Food Loss and Waste.
Discarding food is often more practical and cost effective for businesses rather than donating it, KMPG said, and the experience of other countries has shown the most effective way to support the food industry to do the right thing is via tax system reforms.
Fight Food Waste CRC CEO Dr Steven Lapidge said KPMG are providing advice to Foodbank Australia as part of this latest project.
“Australia’s current tax framework does not adequately motivate retailers, manufacturers and producers to donate surplus stock – in fact, it is no better than if they send it to landfill. This has to change. If tax settings were recalibrated to incentivise donations to food relief, industry would be supported to donate surplus stock,” said Lapidge.
“Proposed reforms to the tax legislation will increase the volumes of surplus, safe, near date food to food relief and divert it away from landfill, as tax exemptions and deductions have the capacity to incentivise and facilitate meaningful and appropriate giving.”
“On this United Nations day of awareness, we are really proud to be announcing the outcomes of this collaborative project where recommendations from the report have been submitted to the Treasurer aimed at boosting the volume of food and related services, such as transportation and storage facilities, being directed to food rescue charities.”
Foodbank CEO Brianna Casey said there is currently not enough food being redirected to front line charities, with only 37 per cent of charities saying they are meeting the full needs of food insecure clients.
“This is a gap that will only increase during the economic recovery from COVID-19 if the need to expand food relief efforts is not addressed. We know there is plenty more food out there for donation. However, it currently just doesn’t make good business sense for a lot of industry to donate this to us,” said Casey.
“If these donations could be incentivised through tax reform, then the sums will add up for a lot more Australian food businesses.
“At the same time as being an innovative industry-based mechanism to meet the growing demand for food relief and emergency support in Australia, these reforms would assist in reducing food waste and support industry, particularly small enterprises such as farmers, during these tough times.”
Today (29 September) is the first International Day of Awareness of Food Loss and Waste (IDAFLW), as launched by the United Nations Food and Agriculture Organisation.
