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Farmers denied refunds despite biosecurity overcharging and government cost recovery surplus

DAFF will not refund farmers despite collecting $26 million in excess biosecurity fees between 2024 and 2026. An Auditor-General report identified cost recovery management failures, prompting calls for greater transparency and fairer charges.

By news@gippsland - 5th November 2026 - Back to News

The Department of Agriculture, Fisheries and Forestry (DAFF) has no plans to subsidise or refund farmers and supply chain businesses who have been overcharged under Labor's biosecurity cost recovery scheme. Despite the Department obtaining $26 million in extra cost recovery surplus between 2024 and 2026, farmers who were overcharged won't get any form of subsidy. It comes after the Australian National Audit Office found DAFF is not managing the risk of over or under recovery.

Matt Canavan accused DAFF of overcharging farmers, retaining surplus funds and failing to justify fees, while refusing refunds amid rising costs and industry pressures

Farmers slam overcharging

Leader of The Nationals Matt Canavan said farmers, industry or any other business which overcharges would always be expected to provide refunds, but the same rule obviously didn't apply to the Department. "The Department is a law unto itself where it can over recover, or charge more, and then put the surplus amount into a cash reserve. The Auditor General has also found DAFF could not demonstrate that the prices it sets reflect actual or minimum costs."

"Our farmers are being overcharged year after year, while also facing higher fuel costs, higher fertiliser costs and more red tape. Instead of throwing our farmers a bone, our farmers are not even given lower cost recovery fees after previously being overcharged. Only Labor benefits from this monopoly," Senator Canavan said.

Farmers oppose rising fees

Shadow Minister for Agriculture Darren Chester said the Auditor General had vindicated the concerns of farmers, but the agriculture industry continues to be ignored. "The Auditor General recommended that DAFF improve visibility of the minimum efficient costs but this still hasn't happened. Farmers are being forced to take DAFF on trust, despite the Department admitting in Estimates that it has already undertaken three reviews of its charging model, and it is still charging more than its costs."

"The Auditor-General found the Department's own Secretary and Minister weren't told how biosecurity prices were set. If the Department can't explain its prices to the people in charge, how can farmers have any confidence they're paying a fair price?"

"In May the Secretary told Estimates that growing cost recovery revenue meant the Department could employ more staff. Farmers shouldn't be paying fees the Department can't show reflect its costs, and with export fees also set to go up when full cost recovery starts in July 2027, the Government needs to fix this before it asks farmers to pay more," Mr Chester said.

Pictures from Victorian Farmers' Markets Association Facebook page.

Source: http://gippsland.com/

Published by: news@gippsland.com

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