NFF would also like to see special taxation measures used as an incentive for broader Government initiatives, especially in the environmental arena, and when parliament resumes next month it will argue tax-based mechanisms could deliver a win-win in areas like climate change mitigation, drought preparedness and environmental stewardship.-

NFF president, David Crombie, said he fears the pace and direction of reform and mounting pressures around rationalisation have "damaged regional interests" with an erosion of populations to the point where "basic and essential services can no longer be provided".-

He said when the Government's responds to the Henry 'Review into Australia's Future Tax System' it must take into account the "biases faced by regional families and businesses" to alleviate the greater burden they carry.-

"There are significant and long-standing biases against people living in regional Australia," Mr Crombie said.-

"These are likely to be compounded by the proposed implementation of a Carbon-

Pollution Reduction Scheme (CPRS) or a carbon price through alternate means, which will certainly increase costs, such as of fuel and energy - costs that see regional individuals, families and entire communities disproportionately exposed."-

He said because the majority of regional communities are "farming towns", their prosperity is aligned with the productivity and sustainability of the farms surrounding them. -

"This dependence on one industry makes the economic risks of the CPRS significantly higher for regional Australia," Mr Crombie said.-

"The 'Review of Australia's Future Tax System' must recognise these higher costs and take steps to alleviate such disproportionate pressures."-

NFF told the review that it was its "fervent desire" to see a tax zone rebate scheme introduced as one way of overcoming regional pressures.-

"Taxation can play a pivotal role in influencing the behaviour of Australia's farming community and, if used effectively, induce positive outcomes for the economy, the environment and society," Mr Crombie said.