AgriFutures Australia invites quotes from qualified providers to evaluate how Australia’s current tax settings for primary producers interact with emerging income streams and to identify policy considerations that support equitable, future-focused tax design.
Submissions close 12 noon AEST Wednesday, 13 August 2025.
Background
Farming in Australia is changing. While most farms have traditionally earned their income by producing and selling commodities like crops or livestock, many are now diversifying how they earn money. More farmers are exploring opportunities like hosting solar panels or wind turbines, selling carbon or biodiversity credits, leasing land or equipment, or opening up their farms for tourism experiences. These income streams tend to be more stable and predictable, offering a valuable way for farmers to build resilience and plan for the future.
Australia’s tax system for farmers was built with traditional farming in mind. It includes tools like income averaging and Farm Management Deposits (FMDs), which are designed to help farmers manage the ups and downs of seasonal income and invest in being better prepared for things like drought. But these tools are based on the idea that most farm income comes from activities that are highly variable year to year.
As farms take on new and more stable income streams, there’s a growing concern that the current tax settings may no longer reflect how farm businesses operate. In some cases, farmers may find themselves ineligible for key tax concessions simply because their diversified income outweighs their traditional farm income, even though they’re still running a farm and still exposed to risks like climate, biosecurity, and market shocks.
If the tax system doesn’t keep up, it could unintentionally hold farmers back from trying new ideas or investing in more sustainable, future-ready business models. It may even discourage the very types of income that help farmers stay viable in tough times.
This research is important because it will help government and industry understand whether current tax rules still make sense in today’s farming landscape. It will provide clear, independent advice on where the system is working well, where it might be falling behind, and how it could better support farmers who are building diverse and resilient businesses.
Service requirements
AgriFutures Australia is seeking quotes from qualified providers to evaluate how current tax settings for primary producers interact with emerging income streams and to identify policy considerations for equitable future-focused tax design.
The key research questions focus on aligning emerging income sources with original policy rationales, identifying potential discouragements to farm diversification and evolving tax policies to support future-ready farm businesses based on evidence.
The successful provider will analyse current tax policies, examine emerging income streams, assess policy objectives, identify unintended disincentives and outline evidence-based approaches without endorsing specific policy options.
Key deliverables include a literature and policy review, an assessment of policy coherence and economic implications, an options paper and a final research report tailored for government and industry.
The extension and communications plan includes briefings to Treasury, ATO, DAFF and relevant RDCs, a short explainer for rural media, presentations to the National Farmers’ Federation and state farming organisations and a webinar and factsheet for broader industry understanding.
The stakeholder use cases highlight the research’s contribution to policy and tax setting, industry communication and policy dialogue and advisor and investor support.
Timeline
Date |
Activity |
Monday, 4 August 2025 |
RFQ – applications open |
12pm (noon) AEST Monday, 11 August 2025 |
End of period for questions or requests for information |
12pm (noon) AEST Wednesday, 13 August 2025 |
RFQ – applications close |
Wednesday, 27 August 2025 |
Intended completion date of evaluation of respondents responses |
Monday, 1 September 2025 |
Expected execution of contract or issue of agreement |
Friday, 28 November 2025 |
Expected project completion date |
How to make a submission
Applications for this Request for Quote must be submitted online using the application in K2.
Users must create a K2 account before submitting a proposal. To set up a secure account before submitting a proposal, please visit the login page below to access our new user or new company request forms.
Usernames and passwords will only be issued while the applicable round is open.
K2 guides and login | AgriFutures Australia
If you require assistance, please contact
Terms of reference
AgriFutures Australia uses standard form contracts and agreements for projects and research procured by AgriFutures Australia. These contracts and agreements set out the terms on which AgriFutures Australia will engage successful applicants to carry out the project.
Applicants must be familiar with the contracts and agreements before submitting a response and are advised to seek legal advice beforehand.
These contracts and agreements have been developed to reflect AgriFutures Australia’s statutory and other procurement responsibilities.
If you require any amendments to the standard agreement, please complete the statement of non-compliance for each of the relevant clause. AgriFutures will then assess those requests.
Applicants will be taken to have agreed to all clauses in the Research Agreement that are not referred to in a statement of non-compliance. The extent of any non-compliance will be a factor in AgriFutures Australia’s evaluation of the application.
If you require further information regarding these contracts and agreements please, contact: