KPMG is committed to making sustainable, positive change in our local communities and in society at large, and has been an active supporter of a National Food Donation Tax Incentive (NFDTI), previously referred to as the National Food Waste Donation Tax Incentive.
In 2020 KPMG delivered a report on boosting food relief through the Australian tax system. At this time, the concept of a NFDTI had gained significant support amongst the food relief sector, government stakeholders, consumer goods and agribusiness supply chain participants, and retailers. We estimated a NFDTI to have a direct cost to Federal Government revenue of approximately $50 to $100 million per annum, with large offsetting social, economic and environmental benefits of approximately $2 billion per annum.
In 2022, we collaborated with Foodbank Australia to design, define and articulate how an NFDTI could work – helping meet Australia’s ambition of halving food waste by 2030 while addressing food insecurity.
We tested the NFDTI concept with different organisations along the food supply chain, to verify whether it could create positive change for the food relief sector and in turn, support the Australian environment, population, and economy. Overall, the key outcome of the NFDTI implementation analysis was a majority of highly receptive views received on the proposed reform, with most stakeholders indicating with certainty they would direct more surplus to food relief and claim the tax incentive if it was implemented.
In 2024, legislation proposing to implement the tax offset was introduced into the Australian Parliament. KPMG has provided a submission to a Senate Committee inquiry supporting the legislation’s enactment.
Food waste facts
Over one million Australians rely on food relief support every month, with the rising cost of living the most common reason for food insecurity. At the same time, excess edible food is discarded rather than donated because it is cheaper to do so.
The NFDTI aims to reduce Australia’s food insecurity by increasing support to businesses to donate food, that may otherwise be discarded, to the food relief sector.
3 times
Australia produces enough food each year to feed the population three times over.1
7.6 million tonnes
Australia generates 7.6 million tonnes of food waste each year.2
3.7 million
3.7 million households in Australia experienced moderate- to severe- level food insecurity in the last 12 months. 3
$36.6 billion
70 percent of food waste is edible4, estimated to cost the economy $36.6 billion per year.5
The proposed food tax incentive
The current measures to divert edible food waste from landfill to those in need comes at a cost many businesses can’t absorb, or don’t have the capacity to action.
We worked with the Fight Food Waste CRC and Foodbank Australia to propose how the NFDTI framework could be brought to life.
Key elements of the framework from our reports:
The proposed NFDTI combines examples of successful global food donation tax policies with Australia’s current tax system.
It aims to incentivise businesses to donate edible food or related services to food relief organisations – in return, they’ll receive a tax rebate or offset.
Overall, the proposed incentive could bring Australian food supply chain participants together, to work towards the common goal of halving food waste by 2030 and redirecting it to those in need.
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Key contacts
KPMG is committed to reducing food waste in Australia. To understand how the tax offset can have a positive, sustainable impact on your business, contact us.
