Economics and International trade assignment

   

Added on  2021-05-31

14 Pages3480 Words33 Views
Industry Reforms, Agriculture 1Economics and International TradeStudents NameCourseProfessorUniversityDate
Economics and International trade assignment_1
Industry Reforms, Agriculture 2INTRODUCTIONNotably, the Australian agriculture industry contribution to the country’s 2016-17 grossdomestic product has largely improved. The Australian agriculture industry contributed 0.9percent out of the 1.9 percent growth rate (Johnson 2017).Over the years, there has beenprofound changes in the Australian agricultural industry. The reforms have positively andnegatively impacted the Australian agricultural performance. The Australian governmentcommitment to the growth of the agricultural industry cannot go unnoticed due to the financialsubsidies, financial and technical support through drought support initiatives and favorable taxbenefits to farmers. Through several legislations and agreements the Australian government haspositively brought changes into the economic livelihood of its farmers. Through governmentfinancing of research and development initiatives, there is development of innovative farmingpractices which have made the agricultural produce more productive, efficient andcompetitive .However, not all changes have made the agricultural industry in Australia such astax exclusivity of large farming businesses in some areas. Currently, small Australian farmers enjoy more taxation benefits as opposed to large scalefarming businesses. Recently, the Australian government made an agreement with the UnitedStates of America as to a mutual recognition of food safety standards. This food and securityagreement has strengthened the trading relationship between Australia and United States ofAmerica and made it more efficient. Mutual recognition of food safety standards between thetwo countries is a show of confidence in the agricultural produce between the two countries thusboosting sales and saving inspection of export procedures. Also, modern legislative instrumentshave been implemented in the agriculture sector regarding exportation which offers safeguardstowards modern challenges such as pests and diseases. In addition, the demand for Australian
Economics and International trade assignment_2
Industry Reforms, Agriculture 3agricultural produce has increased the production level for agricultural produce therebyincreasing the revenue for Australian government and farmers. Largely, the Agricultural sectorreforms have been positive as opposed to negative.INDUSTRY REFORMSNotably, the Australian agriculture industry has experienced some taxation policychanges over the years. Through taxation cuts, farmer’s profits are likely to increase.Typically ,the higher the taxation bracket, the less profit farmers make due to the high taxableincome rates(Vidot 2017).In the year 2015,small sized farming business were the beneficiaries ofa taxation cut. For small sized businesses with an annual turnover of below two million dollars,there was a substantial taxation relief bracket.in the instant case, large sized farming businessesdo not get to enjoy the taxation uplift due to the fact that their annual turnover are likely to beabove two million dollars annually. While it is a gain for small businesses, large farm businessesare not beneficiaries. Moreover, the small farmer businesses in Australia are eligible to futuretaxation refunds (Marshall 2015).In addition to the tax relief being offered to small farmbusinesses, the tax applies to specified farm plants and equipment which is a limited application.This selective application of tax reprieves makes the effect selective rather than general.According to the 2017 White Competitiveness paper, changes are in motion for theAustralian agricultural sector. Specifically, the Australian government seeks to reform its waterinfrastructure .The water industry reform is due to fact that the water infrastructure has beenaging over the years .Particularly ,the government of Australia allocated $300 million towards awater infrastructure recon structuring. There changes are being financed by the National water
Economics and International trade assignment_3
Industry Reforms, Agriculture 4infrastructure Fund to facilitate agricultural purpose of the water infrastructure (Vidot 2017).Thewater infrastructure reforms are expected to boost agricultural production (Pittar N. d).Throughthe ACCC, the Australian government is implementing fair trading practices for its farmers andencouraging agricultural competitiveness among its domestic farmers and the global tradingpartners. The ACCC is responsible for facilitative programs to boost the agricultural producequality, efficiency and productivity among its farmers. Under the Competitiveness agenda, theagriculture industry is likely to benefit from the funding allocations that are likely to makeinnovative practices and techniques for farming thus increasing the desirability of Australianagricultural produce. Further changes have taken place in the Australian dairy market. The Australian dairysectors was deregulated in the year 2000(Department of foreign trade and AffairsN .d).Australian dairy producers are subject to market forces due to the reduced governmentintervention in the sector. The Australian dairy farming industry has managed to sustain itselfmuch better after the deregulation and it is considered more sustainable. Moreover, there hasbeen current legislative reforms in the Agriculture industry. Particularly, the is the export controlbill which was introduced in the year 2017.The piece of legislation is aimed at making theAustralian export platform adequate in handling changing exportation landscape at the globallevel. The bill also seeks to streamline the export sector of the economy making it more efficientand responsible to the current market changes (Department of Agriculture and Water ResourcesN. d).The fact that the sector regulation has taken into account the modern economic changesand challenges of globalization makes the agriculture sector more efficient and functional.In addition, the Australian government had to financially bail out dairy farmers in theadjustment assistance program. The process led to some dairy farmers leaving the dairy industry
Economics and International trade assignment_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Agriculture Reforms Assignment PDF
|14
|3376
|82

Australia Agriculture Reforms: Impact on Economy and Farmers
|13
|3321
|78

Industry Reforms in Agriculture Industry in Australia - PDF
|14
|3191
|36

Social Work Practice Report
|14
|3579
|144

HI5003 - Agricultural Reforms in Australia
|8
|1410
|196

Impact of Agricultural Subsidies in India and China
|19
|4746
|66