The Australian Food and Grocery Council (AFGC) has lodged its 2026 to 27 pre budget submission, calling on the government to take action to support Australia’s food and grocery manufacturing sector and lift jobs, productivity and regional growth.
In 2023 to 24, the sector generated $173 billion in turnover and employed nearly 300,000 Australians, with more than a third based in regional areas. It also accounted for $3.8 billion in capital investment, reflecting ongoing investment in the sector.
The submission outlines priorities for the 2026 to 27 Budget, including measures to lift investment and productivity through tax incentives such as the Instant Asset Write Off and accelerated depreciation. It also calls for action to address skills gaps through a national skills audit and targeted regional employment grants.
Other priorities include strengthening supply chains and infrastructure through improved coordination, regulatory alignment and national resilience measures. The council is also seeking support to expand exports and global competitiveness, including assistance with trade challenges and progress on free trade agreements with the EU and India.
The submission further calls for streamlined regulation and support for innovation through digital supply chains, low risk approvals and national enforcement of food standards. It also outlines measures to support health, nutrition and sustainability, including nutrition literacy initiatives, SME reformulation programs, digital labelling and circular economy measures.
“This is not about throwing money around,” said Colm Maguire, AFGC chief executive officer. “It’s about targeted investment that lifts productivity, strengthens regional economies, and delivers high return outcomes for Australia.”
“Food and grocery manufacturing is not just about providing everyday essentials to Australians. It is a cornerstone of our economy and a source of jobs, particularly in regional communities,” Maguire said.
“Our submission outlines practical, sector wide reforms that will benefit the nation and support productivity, innovation and economic resilience.”