Federal Budget Update: A Focus on Energy Costs and Implications for the Food Distribution Sector

In the recent Federal budget reply, significant attention was given to the pressing issues of energy costs and their direct impact on the food distribution sector. The Shadow Minister for Energy, the Hon. Ted O’Brien, highlighted the need for sustainable energy solutions, which was further echoed by the Leader of the Opposition, the Hon. Peter Dutton MP, in his speech. Both acknowledged the challenges our sector faces due to high energy prices affecting the entire food supply chain—from farmers to manufacturers to distributors—and ultimately, the consumer.

The proposed National Gas Plan aims to ensure a balanced mix of base load power, potentially easing energy costs for our industry. This initiative, coupled with the commitment to streamline regulatory processes, specifically the approval times for solar installations on warehouse roofs, promises to reduce operational hurdles significantly.

Additionally, the reduction of fuel excise on diesel was noted as a positive step, though it was also mentioned that the maximum benefit would be realized only if accompanied by a reduction in the road users charge. These changes are poised to provide some relief to our members facing high logistics costs.

While the budget was largely neutral with regards to direct initiatives for the freight and supply chain industry, it remains focused on easing cost-of-living pressures. It is crucial, however, to maintain advocacy for improved supply chain efficiencies and investments that support our transition to net zero.

The RWTA continue to push for tax offsets on investments in renewable energy solutions like solar panels and batteries, particularly for medium-sized enterprises, to further aid our industry in becoming more energy-efficient and cost-effective.