Australia’s Hunger Relief Organisation Asks the Federal Government to Make Tax Deductions on Food Donations

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Foodbank urges the federal government to enact a law that gives tax advantages to businesses that donate their extra food, a policy already in place in nations including the United States, Canada, and France.

According to the country’s leading food-relief organisation, a specific change to tax laws could give Australians dealing with mounting costs an extra 100 million meals yearly.

One million meals are provided by Foodbank each month, but the nonprofit organisation claims it needs help meeting the demand.

It mainly depends on produce donations from farmers, businesses, distributors, and retailers and is currently seeking innovative ways to source more food.

Brianna Casey, CEO of the organisation, said it was a relatively minor modification that would enable it to support more people in need and make donating food practically less expensive than throwing it out.

“The unfortunate situation in Australia is that there’s no incentive to donate products that won’t make it to market,” Casey said.

“When we look at the current tax system for farmers and manufacturers when they have a product that doesn’t make it to market, the tax system treats it exactly the same way for donating as it would for dumping,” she added.

To reduce garbage and ensure that more people have access to food, Foodbank has campaigned with successive governments in favour of the food waste tax incentive.”

By using a non-refundable tax credit or a refundable tax offset, firms that made food donations could pay less tax following the proposal.

The proposal, developed with help from KPMG and The Fight Food Waste Cooperative Research Center, is now more urgent than ever, according to Ms Casey, who also noted that the cost of living crisis had increased the urgency.

The call for the government to act on tax adjustments on food donations would help reduce food waste and provide much-needed meals to people in need.

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