Food charity calls for tax help for imperfect, surplus food donations

Foodbank's chief operations officer Sarah Pennell said the organisation wanted family farms to be eligible for a federal tax break, which equated to a net 20 per cent cash back on the cost of donating produce.

Larger businesses would get a 10 per cent tax credit.

"As things stand, with the current tax system, an opportunity is being missed to motivate and support farmers - give them the means to do the right thing," she said.

"In terms of tax treatment, donating food is treated exactly the same as dumping it."

She said while would cost the government about $50 million, it would provide a $2 billion return.

Overseas examples showed if there was an incentive to donate, farmers would be motivated to do so, she said.

"In developing the proposal, we spoke to farmers and it's not surprising to know that when they put all their blood, sweat and tears into producing the food and they hate to see it going to waste," she said.

"They said they would access the tax incentive and it would help them have the means to redirect the food."

Ms Pennell said Foodbank currently received produce directly from farms, but there were a lot of barriers to increasing participation.

"If the farmer is not going to receive any money for his or her crop, they can hardly be spending even more in picking and transporting it to us, at the food relief charities," Ms Pennell said.

"They hate to see it go to waste.

"Unfortunately, often all they can do is not pick it, plough it in, or send it for animal feed."

Foodbank accepted "all sorts of produce" directly from farmers.

"All of it is extremely valuable to us because it's good, fresh, healthy food," Ms Pennell said

"Of all the food off the farm that's going to waste, more than 70 per cent is fit for human consumption."

Foodbank estimates six million tonnes of food each year is wasted.

It told the government that costs the economy more than $36.6 billion, while two million households were experiencing food insecurity.

"We have had interest in Canberra," she said.

"It's been described as 'smart policy' - a win-win, because we are talking about reducing food waste and feeding vulnerable people at the same time.

"In our proposal we have identified it would be a $2 billion return, in both environmental and social outcomes."

The proposal had been received positively by both sides of politics - "but it just hasn't been taken up," she said.

'We are going to keep beating the drum until it is considered important enough and worthy of consideration."