Senate Rural and Regional Affairs and Transport Legislation Committee

Senate Estimates hearing, 27 Oct 2026

Searchable transcript of the Senate Rural and Regional Affairs and Transport Legislation Committee, 27 Oct 2026 Senate Estimates hearing, with chapters: Committee Opening and Procedural Matters, Secretary Statement on Bird Flu Response, Biosecurity Cost Recovery and Audit Findings, Managing Risks…

Chapters

Committee Opening and Procedural Matters (10:31)
The Chair opens the hearing for the Rural and Regional Affairs and Transport Legislation Committee, outlining procedural rules and introducing the Minister and Secretary.
Secretary Statement on Bird Flu Response (18:25)
Secretary Victoria Anderson provides an update on the H5 bird flu response and the impact of Middle East conflicts on agricultural supply chains and fuel costs.
Biosecurity Cost Recovery and Audit Findings (21:00)
Senator Canavan questions the department on ANAO findings regarding biosecurity cost recovery surpluses and the management of financial risks.
Managing Risks of Overcharging Importers (24:35)
Discussion continues on the department's response to the Auditor-General's report concerning the risk of under or over recovery of costs.
Impact of Import Volumes on Revenue (29:31)
The department explains that fluctuations in cost recovery revenue are primarily driven by unforeseen changes in import volumes rather than pricing errors.
Minimum Efficient Costs and Charging Models (32:24)
The committee examines whether the department's charging model reflects actual or minimum efficient costs for regulatory services and discusses audit recommendations.
Internal Reviews and Cross-Subsidization Risks (37:18)
Examination of internal reviews from 2024 regarding charging model risks and the potential for cross-subsidization between different fee structures.
Self-Assessed Clearance Charges and Industry Concerns (41:53)
Senators question discrepancies in revenue and expenditure for Self-Assessed Clearances (SACE). Industry concerns regarding over-recovery and the process for indexing charges are addressed, alongside the role of consultation forums.
Withdrawn Charging Guidelines and Pricing Frameworks (48:44)
The department explains the two-year gap since internal charging guidelines were withdrawn for updates. Officials clarify that they continue to comply with the broader Commonwealth charging framework while finalizing new internal policy documents.
Staffing Levels and Activity Based Costing (50:59)
Discussion on how cost recovery revenue supports departmental staffing and FTE positions. The department details its rolling program of activity-based costing pilots designed to ensure efficient pricing and correct effort allocation.
Departmental Travel Approvals and Airline Memberships (54:47)
Officials respond to ANAO findings regarding unapproved domestic travel and missing travel requests. The department also confirms the cessation of taxpayer-funded airline memberships in line with whole-of-government decisions.
Senior Executive Remote Work and Locations (57:25)
The committee reviews the number of Senior Executive Service (SES) staff based outside of Canberra. Discussion covers the travel requirements for non-Canberra based deputies and the breakdown of staff across regional offices.
Securing Fertilizer Supply Chains and Food Security (59:54)
The department outlines the impact of Middle East conflict on urea and fuel supplies. Details are provided on the Fuel and Fertilizer Security Facility, diversification of imports from Africa and Southeast Asia, and the establishment of a fertilizer dashboard.
Export Cost Recovery Deferral and Farmer Support (1:14:03)
Officials explain the decision to defer full export cost recovery by one year to provide certainty during global instability. The session concludes with an overview of financial supports for farmers, including the Farm Household Allowance and RIC loans.
Market Distortion and Access Priority (1:27:31)
The department addresses concerns from Fertilizer Australia regarding potential market distortion and explains the 'tranching' approach used to prioritize company access to the facility.
Competitive Advantage and Financial Reporting (1:34:22)
Discussion on whether the facility provided a competitive advantage to specific companies and an examination of financial gains reported by participants like Ridley.
Importer Losses and Facility Pause (1:40:08)
Officials respond to estimates of $20-25 million in losses by excluded importers and explain the decision to pause the facility in July while maintaining the fertilizer dashboard.
Working Holiday Maker Migration Policy (1:47:36)
The department is questioned on its consultation regarding proposed cuts to the working holiday maker program and the potential impact on the agricultural workforce.
Agricultural Workforce and Harvest Risks (1:54:26)
A comparison is drawn between current labor policy and COVID-era shortages, highlighting risks to harvests for producers who rely heavily on backpacker labor.
Deforestation and Land Use Monitoring (2:00:42)
The committee examines a report on deforestation linked to beef production and questions the department's lack of real-time monitoring tools for land use changes.
COP 28 and Reversing Deforestation by 2030 (2:10:20)
Review of Australia's commitment at COP 28 to halt and reverse deforestation by 2030 and the necessary monitoring programs to meet these obligations.
Fertilizer Facility Referrals and Participation (2:11:50)
Update on companies referred to the fertilizer facility and their participation status following the hearing's morning suspension.
Taxation Changes for Agricultural Discretionary Trusts (2:33:41)
Inquiry into proposed tax changes for discretionary trusts, the lack of direct farmer consultation, and engagement with Treasury on implementation.
Impact of Tax Changes on Farm Management Deposits (2:38:35)
Analysis of how corporate restructuring due to tax changes affects eligibility for Farm Management Deposits (FMDs) and the options available to farm businesses.
Restructuring Options and Rollover Relief for Farmers (2:44:29)
Examination of the three-year rollover relief period and the practical difficulties farmers face when attempting to split primary and non-primary production assets.
Accumulated Tax Losses and Capital Gains Tax (2:47:04)
Inquiry into how accumulated tax losses interact with the new Capital Gains Tax regime and criticism regarding the lack of consultation on these policy changes.
Assessing the Scale of Impacted Agricultural Trusts (2:48:31)
Analysis of the number of farm businesses using trusts and the total value of deposits held in the FMD scheme, estimated at $6.3 billion across 41,000 accounts.
Stamp Duty Concerns and FMD Scheme Integrity (2:53:02)
Discussion on state-level stamp duty triggers during restructuring and the integrity measures maintaining the $800,000 individual cap for Farm Management Deposits.
Migration Targets and Agricultural Workforce Requirements (2:58:31)
Debate over net overseas migration targets, backpacker numbers, and the expansion of the PALM scheme to meet harvest labor needs in the agricultural sector.
Forestry Grant Eligibility and Foreign Investment Review (3:02:05)
Investigation into an $8.8 million grant for the Tasmania Natural Asset Trust and the timing of Foreign Investment Review Board (FIRB) approval for the site.
Double Dipping Concerns and Land Tenure Oversight (3:12:53)
Examination of potential double dipping between CFC funding and departmental grants, alongside internal departmental concerns regarding the verification of land tenure.
Balancing Grant Speed with Regulatory Rigor (3:24:11)
The department explains the decision to sign grant agreements before final regulatory approvals to align with industry planting seasons and support plantation establishment.
Scrutiny of Project Partners and Eligibility (3:28:52)
Senators question the involvement of Commonwealth entities as project partners and whether eligibility guidelines were strictly followed for the applicant trust.
Assessing Economic Viability of Timber Sites (3:30:45)
Discussion on the requirement for accredited foresters to certify that plantation sites are in economically viable locations for timber production and harvesting.
Productivity Concerns and Carbon Credit Outcomes (3:35:51)
Senators express concern that low site productivity might prevent the project from delivering expected carbon credits and timber outcomes, citing past failed schemes.
Regulatory Roles in Carbon Farming Assessments (3:42:58)
Officials clarify the division of labor between the Department and the Clean Energy Regulator regarding agricultural production history and carbon credit assessments.
National Climate Risk and Adaptation Planning (3:53:22)
A review of conflicting climate risk ratings in government reports and how the Department of Agriculture implements adaptation policies to support farmer resilience.
Climate Impacts on Agricultural Productivity Forecasts (3:58:35)
ABARES and NEMA discuss the impact of heat and El Niño on farm profits and the quarterly forecasts for agricultural commodity production and food security.
Tasmania Forestry Bilateral Agreement Timeline (4:05:53)
Senators inquire about the 2027 deadline for the bilateral agreement between the Commonwealth and Tasmania regarding forestry.
Environmental Standards in Forestry Approvals (4:07:57)
Discussion on benchmarking the Tasmanian Forest Management System against reformed national environmental laws and standards.
Departmental Roles in Forestry Negotiations (4:09:47)
Clarification of the department's role in supporting the RFA Act during bilateral negotiations led by the environment department.
Plantation Support Program Grant Extensions (4:11:15)
Officials discuss potential extensions for plantation support grants due to delays in project commencement and planting seasons.
Clean Energy Regulator Project Declarations (4:13:17)
Examination of the requirement for Clean Energy Regulator approval and ACCU project declarations before releasing grant funding.
Development Timeline for Food Security Strategy (4:40:09)
Following a break, the committee reconvenes to discuss the development timeline and progress of the National Food Security Strategy.
Commodity Scope and Production Focus (5:16:44)
Officials clarify that the food security strategy encompasses all commodities, including grains, meat, fruit, and vegetables.
National Food Council and Cabinet Briefings (5:17:28)
Discussion regarding ministerial attendance at National Food Council meetings and the status of briefings for the National Security Committee.
Inter-departmental Cooperation on Food Policy (5:17:58)
Details on the inter-departmental committee involving 15 agencies working on the broad definition of food security.
Impact of Global Events on Supply (5:19:12)
How international conflicts and global uncertainties have reinforced the need for a robust national food security strategy.
National Food Security Strategy and Waste (5:20:00)
Discussion on the drafting of the National Food Security Strategy and efforts to address food waste across the supply chain.
ABARES Forecasting for Global Market Shocks (5:24:30)
ABARES explains their methodology for forecasting global market shocks, focusing on fertilizer and fuel price volatility.
Hardening Supply Chains Against Biosecurity Threats (5:27:22)
Officials discuss hardening domestic supply chains against biosecurity threats like H5 avian flu and potential cyber incidents.
Population Growth and Domestic Food Production (5:29:59)
Senators question whether domestic food production is keeping pace with Australia's significant population growth this century.
Infrastructure, Labor, and Industry Performance (5:36:24)
Examination of processed food import data, the need for new water infrastructure, and agricultural labor force challenges.
First Nations Participation and Ranger Programs (5:46:58)
Update on the National Statement for First Nations in agriculture and the role of Indigenous rangers in biosecurity surveillance.
Expanding Market Access and Trade Diversification (5:50:55)
Review of recent market access achievements in Vietnam and Indonesia and the overall value of agricultural exports.
EPBC Act Guidelines and Land Management (5:55:03)
Inquiry into the impact of new EPA guidelines and EPBC Act 'continuous use' rules on farming land management.
Regulatory Alignment and Industry Engagement Efforts (6:06:50)
Discussion on aligning state and federal environmental regulations to provide certainty for the agriculture sector and the department's engagement with industry bodies.
Funding and Development of Food Security Strategy (6:13:14)
A review of the $3.5 million funding for the National Food Security Strategy, its current drafting phase, and the outcomes of the co-design workshops.
Carbon Credits and International Investment Risks (6:16:57)
Concerns regarding the potential for Australian Carbon Credit Units (ACCUs) to be used by international investors to meet foreign targets, potentially impacting local food production.
EPBC Act Definitions and Grazing Activities (6:20:57)
Debate over whether grazing activities trigger land clearing definitions under the new EPBC Act guidance and the impact on continuing use provisions for farmers.
EU Deforestation Regulations and Export Compliance (6:26:29)
Examination of the EU Deforestation Regulation's impact on Australian beef and timber exports, including Australia's low-risk status and geolocation compliance tools.
EU Trade Deal Modeling and Food Systems (6:39:36)
Discussion on economic modeling for the EU Free Trade Agreement and the broader resilience of food supply chains and regional economies in the food security strategy.
National Food Security Strategy and Supply Chains (6:40:49)
Officials discuss the development of a national food security strategy, focusing on supply chain resilience, critical inputs like fertilizer and fuel, and lessons learned from recent global disruptions.
Live Sheep Export Phase-out Funding Allocation (6:52:18)
The committee examines the expenditure of the $139.8 million live sheep export transition package, including payments to farmers, supply chain grants, and departmental administration costs.
Impact on Western Australian Sheep Industry (7:00:17)
Senators debate the impact of the live export ban and wool store closures on Western Australian flock numbers, wool production, and domestic lamb prices.
Wine Industry Grants and Transition Proposals (7:06:46)
Discussion regarding the status of Cellar Door grants, the potential cessation of future funding rounds, and industry proposals for vineyard exit or transition grants.
Illegal Logging and Russian Timber Sanctions (7:11:15)
The department addresses concerns regarding non-compliant timber imports and the enforcement of sanctions against Russian timber products entering the Australian market.
APVMA Cost Recovery and Fee Consultation (7:16:32)
Officials explain a proposal to move the APVMA toward 100% cost recovery for application fees and the feedback received from the agricultural chemical industry.
Working Holiday Maker Visas for Agriculture (7:18:50)
The committee discusses delays in approving working holiday maker visas and the department's role in advising Home Affairs on acute labor needs for harvests.
Regional Forest Agreements and EPBC Act changes (7:20:38)
Examination of the expiry of Regional Forest Agreement exemptions under the EPBC Act and ongoing negotiations with states regarding replacement bilateral agreements and environmental standards.
Native forest management and carbon credits (7:25:00)
Discussion on carbon credit methodologies for native forests and regulatory options for logging in Tasmania should bilateral agreements not be finalized by 2027.
Biosecurity risk analysis for banana imports (7:43:09)
Review of the departmental delegation to the Philippines to assess production practices and the revised 30-month timeline for the formal banana import risk assessment.
Economic impact of banana pest incursions (7:50:10)
Analysis of the economic consequences of potential pest incursions on the domestic banana industry, including ABARES modeling and impacts on regional growers in Queensland and New South Wales.
Food security strategy and supply chains (7:58:38)
Discussion on how the national food security strategy addresses vulnerabilities in the banana supply chain, import reliance, and the variety of bananas grown in the Philippines.
Commonwealth Funding for H5 Bird Flu Preparedness (8:02:50)
The department outlines the $270 million commitment to strengthen H5 bird flu surveillance and preparedness, including specific allocations for agriculture, environment, and health portfolios.
Expenditure and Residual Preparedness Funding Status (8:05:33)
A detailed breakdown of spent and uncommitted funds for H5 preparedness is provided, focusing on the $43.9 million allocated to the agriculture portfolio and the status of communications campaigns.
National Response Cost Sharing with Jurisdictions (8:10:41)
Discussion on the cost-sharing formulas between the Commonwealth and states under the Emergency Animal Disease Response Agreement (EADRA) and the National Management Agreement for H5 in wildlife.
Support for Veterinarians and Wildlife Carers (8:14:40)
Officials explain the varying levels of support provided to private veterinarians, wildlife carers, and local councils across different jurisdictions during the H5 bird flu response.
Current Status of H5 Events in Wildlife (8:20:52)
The Chief Veterinary Officer provides a state-by-state breakdown of the 723 confirmed H5 bird flu events in wildlife as of late October 2024, noting that poultry remains unaffected.
Addressing the National Veterinary Workforce Shortage (8:23:30)
The department discusses long-standing veterinary shortages and the initiative to deliver a national veterinary workforce data snapshot by July 2027 to inform future policy decisions.
Bird Flu Data Transparency and Monitoring (8:29:32)
Senators question the lack of granular data on total animal deaths and the effectiveness of remote monitoring at locations like Macquarie Island during the H5 outbreak.
Fire Ant Detection at Sydney Container Sites (8:54:20)
Senators question the timeline and effectiveness of fire ant surveillance at Sydney container terminals, specifically focusing on the frequency of lure checks and the age of detected nests.
Public Communication and Risk of Fire Ant Spread (9:01:44)
Discussion regarding the delay in public notification of fire ant detections and the accuracy of modeling used to estimate the risk of spread in New South Wales.
Biosecurity Reviews and Future Funding Requirements (9:07:27)
Officials outline ongoing reviews of surveillance arrangements and the role of the Inspector-General of Biosecurity in assessing risk management across the biosecurity continuum.
Scrutiny of Fire Ant Eradication Methods (9:11:18)
Senator Roberts questions the effectiveness of the national fire ant eradication program, raising concerns about whether broadcast baiting might inadvertently assist the spread of the pest.
Environmental Impacts of Fire Ant Baiting (9:14:30)
Discussion on the potential negative effects of broadcast baiting on native invertebrates and the broader environment, including the validity of current eradication modeling.
Fire Ant Program Governance and Bee Impacts (9:19:59)
Senator Roberts questions the governance of the National Fire Ant Eradication Program and the potential impact of its pesticides on native and commercial bee populations.
National Carp Control Plan and Virus Release (9:23:44)
Senator Pocock asks for updates on the National Carp Control Plan, specifically the timeline for virus release and the status of field trials in unconnected bodies of water.
Tasmanian Fisheries and Feral Deer Management (9:26:10)
Senator Bilyk raises concerns regarding florfenicol use in Tasmanian fish farms and the management of feral deer within the Tasmanian Wilderness World Heritage Area.