Federal Budget delivers mixed outcome for horticulture

Queensland Fruit & Vegetable Growers (QFVG) says the 2026–27 Federal Budget delivers several positive measures for horticulture businesses, particularly around fuel and fertiliser security, tax certainty, and small business investment, but significant concerns remain around future investment in drought resilience and regional agricultural programs. 

QFVG CEO Scott Kompo-Harms said the Budget was handed down at a time of heightened global uncertainty, with rising energy, freight, and input costs continuing to place enormous pressure on Australian growers. 

“Queensland growers are already dealing with increasing costs, workforce shortages, biosecurity risks, extreme weather, and supply chain pressures. Global instability is only adding further strain to farm businesses,” Mr Kompo-Harms said. 

“In horticulture, when fuel, fertiliser, and freight costs rise, those impacts are felt immediately across production, packing, transport, and ultimately by consumers at the checkout. 

“Many growers also continue to absorb rising costs without the ability to fully recover those increases through the supply chain.” 

QFVG welcomed the Government’s $11.9 billion National Fuel Security Plan, including measures to strengthen domestic fuel and fertiliser supply chains and improve resilience against future global disruptions. 

“For a highly perishable industry like horticulture, reliable access to fuel, fertiliser, and freight is critical,” Mr Kompo-Harms said. 

“These measures recognise that food production and regional supply chains are essential national infrastructure. 

“The focus on fuel and fertiliser security is particularly important for growers who have experienced severe cost volatility over recent months.” 

QFVG also welcomed the permanent extension of the $20,000 instant asset write-off for small businesses. 

“Providing certainty around the instant asset write-off gives growers greater confidence to invest in machinery, equipment, technology, and on-farm improvements that support productivity and efficiency,” Mr Kompo-Harms said. 

QFVG also welcomed the Government’s $55.8 million investment to strengthen border protection and manage biosecurity threats in Australia’s northern waters. 

“For Queensland growers, strong biosecurity protections are absolutely critical,” Mr Kompo-Harms said. 

“Any biosecurity breach has the potential to seriously impact Australia’s horticulture industry, market access, and food security. 

“We welcome this investment to help strengthen surveillance, border protection, and biosecurity management across northern Australia.” 

QFVG also noted the Government’s decision to redirect uncommitted funding from the Future Drought Fund, saying “Investment in drought preparedness, water security, and regional resilience remains critical for the long-term sustainability of Australian food production,” Mr Kompo-Harms said. 

QFVG said further detail was needed around proposed taxation changes affecting capital gains and discretionary trusts. 

“The confirmation that primary production income will be exempt from the proposed 30 per cent minimum tax on discretionary trusts is important for family farming businesses,” Mr Kompo-Harms said. 

“However, many horticulture businesses operate through complex family and business structures that may include packing sheds, transport operations, value-adding or off-farm investments. 

“The detail of these reforms will matter, particularly for succession planning, restructuring, and future investment decisions. 

QFVG also said workforce availability remained one of the biggest challenges facing regional horticulture businesses. 

The organisation acknowledged measures aimed at strengthening the integrity of the migration system and reforms to the Working Holiday Maker program, but said it was important that any changes continued to support reliable access to labour. 

“Horticulture relies heavily on access to seasonal and regional workers, and workforce availability remains one of the biggest constraints on growth across the sector,” Mr Kompo-Harms said. 

“Any changes to migration and visa settings must continue to recognise the critical workforce needs of regional agricultural industries. 

“Growers need workforce systems that are practical, efficient, and responsive to seasonal demand, particularly in regional communities where labour shortages remain acute.” 

Housing affordability and availability also remained an ongoing challenge for attracting and retaining workers in regional communities.  

QFVG also welcomed continued support for small businesses navigating workplace relations, compliance obligations, and financial pressures. 

“Additional support services for small businesses are important, particularly for regional family businesses managing increasingly complex employment, compliance and operating environments,” Mr Kompo-Harms said. 

“Queensland growers produce fresh food for Australian families every single day,” Mr Kompo-Harms said. 

“If Australia wants a productive, resilient, and competitive horticulture industry into the future, continued investment in regional communities and agricultural businesses must remain a national priority.”