The tax tweak that could feed millions of hungry Australians

In a giant warehouse in Prestons, in south-west Sydney, thousands of food items are packed and delivered all over the city.

"We supply cafes, restaurants, pubs, clubs, we're like a one-stop shop," said Ben Gullo, the managing director of Reliable Food Distributors.

The family business inevitably ends up with excess stock and donates as much of it as possible to Foodbank.

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"We wear the cost - the driver, the fuel, the truck expense," said Gullo.

"The last thing I want to do is throw good food in the garbage."

Right now there's no tax incentive for Australian businesses to donate food.

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"It's actually the same tax treatment for dumping products as it is for donating," said Brianna Casey, the CEO of Foodbank Australia

The private members' bill is before the senate, proposing a tax credit saving 15 to 20 per cent off the cost of donating food to charities.

An incentive is aimed at helping small and medium operators donate more including farmers, distributors and hospitality but it won't benefit big businesses, such as supermarkets.

"That's not a lack of goodwill, it's just finances," Casey said.

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Similar incentives are already in place overseas, including in the United States, Canada and France.

KPMG has been working with charities since 2020, to model how it could be implemented here.

"Australia is lagging a little bit," says KPMG Enterprise Partner Kaylene Hubbard.

"Our very firm view is that whatever cost there is will be offset by the benefits."

"Everyone wins - the environment, businesses, charities and people who need help with cost of living."

If it passes, it's estimated the incentive would see an extra 100 million meals a year donated to Foodbank.

The need has never been greater.

"Foodbanks across Australia are experiencing record demand for food relief, we have seen some which have seen a doubling in demand," said Casey.

"We've seen an increase in the number of working families who are needing food relief, we've also seen an increase in the number of people experiencing hardship for the very first time."

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