February 13, 2009
Dairy Australia downplays tax removal on milk
The abolition of tax on milk will not be a disadvantage on Australia's dairy farmers, according to Dairy Australia.
Currently, consumers pay an 11 cent levy on every litre of milk and it will be lifted effective February 23. However, many retailers have already started phasing in the cut.
Dairy Australia's trade and strategy general manager Chris Phillips says the levy will never have an impact on Australia's farmgate price.
Phillips says "it's simply taking off the tax that's been there on domestic drinking milk sales to finance the old deregulation package, but it has nothing to do with current farm gate pricing."
