Sunday, October 13, 2024

Small businesses May Get Tax Incentives For Donating Excess Food in Australia

Family-run food distributors and small businesses could help meet rising demand for food relief with proposed tax savings on donations

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In a large warehouse in Prestons south-west Sydney Reliable Food Distributors packs and delivers thousands of food items to cafes, restaurants, pubs, and clubs across the city. The family business, led by managing director Ben Gullo, often has extra stock, which they donate to Foodbank.

“We cover the costs of the driver, fuel, and truck. The last thing I want is to waste good food,” Gullo said.

However, there’s no tax benefit for Australian businesses that donate food, and the same tax rules apply whether food is donated or thrown away. Brianna Casey, CEO of Foodbank Australia, hopes to change that with a new bill in the senate. This bill would offer a tax credit, saving small and medium businesses, including farmers and hospitality, 15 to 20 percent off the cost of donating food. Unfortunately, big businesses like supermarkets wouldn’t benefit.

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Small businesses May Get Tax Incentives For Donating Excess Food in Australia

Other countries like the United States, Canada, and France already offer similar incentives. KPMG, a consulting firm, has been working with charities since 2020 to figure out how it could work in Australia. Kaylene Hubbard from KPMG said, “Australia is falling behind, but we believe any cost will be outweighed by the benefits.”

If this bill is passed, it’s expected that an additional 100 million meals could be donated to Foodbank each year, which would be a big help as demand for food relief continues to rise. Many Foodbanks across Australia are seeing record numbers of people needing assistance, including working families and people facing financial hardship for the first time.

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Everyone would benefit from the tax credit – the environment, businesses, charities, and people struggling with the cost of living.

Sophie Stella
Sophie Stella
Sophie Stella is an experienced news reporter and editor with 5 years of expertise, renowned for her dedication to truth and compelling storytelling.

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