10/04/2026
Dear Minister for Agriculture, Fisheries and Forestry, and the Honourable Treasurer,
This letter outlines the core legal, statutory, and policy arguments supporting the National Farmers Federation in its urgent bid for direct financial subsidies and relief measures to offset the currently unsustainable cost of diesel and agricultural fuels.
While Australian farmers are resilient, the unprecedented surge in fuel prices—driven by geopolitical instability and supply chain constraints—constitutes an exceptional market distortion. Without immediate government intervention, the viability of Australia’s agricultural sector and domestic food security are at severe risk. I write as a concerned member for the Barker community, stemming to Grey without discussion with NFF, just concern as a student of law, budding lawyer, Advocating on behalf of peers.
The legal and economic basis for immediate subsidy and intervention fit for purpose suggested below:
1. Statutory Equity and the Purpose of the Fuel Excise:
Historically, the NFF has maintained that the existing Fuel Tax Credit (FTC) scheme is a rebate of a tax designed to fund public road infrastructure, not a subsidy. Because farm machinery operates off-road, levying a road-maintenance excise on agricultural fuel is inequitable. In the current pricing environment, the rebate alone is insufficient. The legal argument for an extraordinary subsidy rests on the principle of regulatory fairness, ensuring that essential off-road industries are not penalized during global supply shocks.
2. Market Failure and the "Price-Taker" Dynamic:
In competition and trade law, subsidies are justified to correct clear market failures. Australian farmers are entirely exposed to global markets as "price-takers." Because they cannot pass skyrocketing fuel costs onto consumers without breaching contracts or losing export competitiveness, a temporary fuel subsidy is a necessary intervention to prevent structural market failure and mass insolvency.
3. National Security and Statutory Duties Regarding Food Supply:
The Commonwealth Government has a duty to safeguard national security, which fundamentally includes food security. Agriculture is an essential service. Just as the government subsidizes public transport or energy grids to prevent collapse, the same logic must apply to the machinery that harvests the nation’s food. A targeted subsidy directly aligns with the government's mandate to control the cost-of-living crisis and prevent artificial scarcity.
4. Precedent for Sector-Specific Emergency Relief:
There is robust legal and historical precedent for delivering targeted industry subsidies during force majeure events. This fuel crisis is a product of international conflict outside the control of Australian producers. A temporary subsidy can be legally structured as an emergency relief package under the Financial Management and Accountability Act frameworks, specifically tied to primary production to avoid international trade disputes.
The National Farmers' Federation seeks a critical, time-limited intervention to keep supply chains intact. The arguments of tax equity, market failure, and national food security dictate that the existing Fuel Tax Credit scheme is no longer adequate. We urgently request the implementation of a targeted fuel subsidy for primary producers to protect both farmers and consumers.
The opportunity to discuss the legislative mechanisms required to implement this relief immediately with NFF from media and political discussion seems open.
Reach out and get the ball rolling on anything that can be done.
Yours faithfully,
