Northern Territory Cattleman’s Association President David Warriner said the government’s decision not to extend the tax exemption to on-property aviation fuel was “another blow to the struggling northern cattle industry”.

“This is on top of last year’s live export ban which effectively shut down the northern industry and the flow on of that impact is still accelerating, with Indonesian import quotas for Australian cattle at an all time low” Mr Warriner said.

Fuel companies say the rise will be aroun 9 cents per litre from July 1.

“This will not only increase the direct costs for those cattle stations that operate their own aircraft but also the companies that supply mustering services to the industry.

“It will increase the cost of production, forcing savings in other areas such as labour,” Mr Warriner said.

“It will also increase the cost of other essential

operations such as fire management and monitoring; weed and pest management survey and control programs.

“Many of these operations relate to the overall wellbeing and environmental integrity of northern Australia, making the revenue raised through the tax a false economy.”

While the NTCA applauded the government’s decision to exempt other on-property fuel from the carbon tax, the possibility of on road transport fuel being taxed from 2014 is causing serious concern.

“Freight is a major part of the cost of doing business with the transport of goods and services in, and livestock out, over long distances,” Mr Warriner said.

“These costs will not only further stress families and business viability but also the competitiveness of our industry in the domestic and international markets on which we depend.”