Bill to ban live sheep exports hits the House, Senate inquiry showdown looms

However, in a twist, Agriculture Minister Murray Watt flagged in response to questioning in estimates that it would be a "good idea" for the Bill to be probed by a Senate Inquiry.

The Export Control Amendment (Ending Live Sheep Exports by Sea) Bill, which also contains provision for a $107 million industry transition funding package, comes five years after Labor first embedded the ban into its party policy platform in 2019.

The Government again committed to the pledge prior to the 2022 election, saying that it would introduce laws in the current parliamentary term intended to begin the phase-out process.

Agriculture Minister Murray Watt also followed through on a continually reiterated promise that Labor would not be ending the trade in its first term of government.

The May 1, 2028 phaseout date was a recommendation made by an independent panel formed to advise the Government on the transition and how to best balance animal welfare concerns and assist industry that in some cases have been part of the Australian sheep industry for generations.

Nationals leader David Littleproud immediately referred the legislation to the parliamentary Standing Committee on Agriculture for consideration however the motion was voted down by the government.

However, Mr Watt told Senate Estimates on Thursday that the enabling legislation and phase-out plans will likely be referred to a Senate Committee Inquiry.

Supporting an inquiry would be a sensible move by the government facing the ire of farm lobbyists to ensure full transparency of the process, although somewhat brave after its biosecurity protection levy was blocked by the Senate after a similar inquiry into that Bill.

Mr Watt agreed to a question by Western Australian Liberal Senator Slade Brockman that the phase out was a "contentious and disputed" policy area.

He added that, while the lower house committee probe was blocked, the Senate is the usual forum that forensically pulls apart legislation and "Im sure that will happen here.

He then said it would be a "good idea" that it be held and its members physically travel to WA for hearings to hear from farmers and community members.

Mr Littleproud welcomed Labors support for an inquiry, adding that the policy had caused enormous anxiety to the live sheep export industry with "its confusing messaging".

Farmers deserve answers, because Minister Watt is still unable to explain the science behind closing the industry," he said.

Meanwhile, Mr Watt said in an earlier statement that Labor was providing industry the "time, support and certainty" it needed to plan for the future.

"We have put $107 million on the table to ensure those affected by the phase out are well-positioned and ready when the trade ends in May 2028," he said.

"This is a policy that invests in the future of the Australian sheep industry.

"Funding from the Government will assist the supply chain to adapt to the phase out with more onshore processing and more value adding, together with action to enhance demand for sheep products domestically and overseas."

Once the legislation is passed, more information on the transition support programs will be available in the second half of the year to assist industry participants to start preparing.

Mr Watt said that while industry and communities plan for the end of trade "there is regulatory stability".

"Trade may continue until 1 May 2028 and Australia's high animal welfare requirements for live sheep exports remain in place," he said.

Meanwhile, a highly-respected political strategist believes Labor could have underestimated public sentiment against the ban in Western Australia and that the policy was unlikely to win any new votes.

As farmers launch a last-ditch campaign on Thursday to fight the phase-out, former Victorian Labor deputy campaign director Kos Samaras also said polling around government performance by his company Redbridge in Perth recently found many residents raising the phase-out without being prompted.