The live sheep phase out panel will have another six weeks to hand down its recommendations, while the government has splurged $22.5 million to improve the nation's livestock traceability system.
The independent panel overseeing advice on how and when the government will phase out the live sheep trade requested the extension after receiving more than 800 written submissions and 3300 survey responses.
The panel now has until October 25 to hand its report to the Albanese government, which will include its recommendations.
Agriculture Minister Murray Watt confirmed the phase out end date would not happen during this term of parliament, and the upcoming report would identify the policy's impacts and opportunities for the sheep industry.
"We know farmers and other industry participants need time to prepare for the pathway forward," he said.
"My priority has always been, and continues to be, ensuring the phase out occurs in an orderly way, and this includes proper planning.
The government has also put $22.5m towards enhancing the National Livestock Identification System (NLIS) database
The funding will help to modernise Australia's data capture, storage, and distribution system for tracking livestock and their movements.
The money will also support the delivery of a platform that can accommodate additional data inputs from other systems, which will help prove Australia's agricultural credentials for international market access requirements, including sustainability and animal welfare.
Senator Watt said the uplift would make NLIS easier to use for farmers and streamline the reporting process.
"The faster and more accurately animals are traced, the quicker we can respond and recover from any emergency animal disease outbreak," he said.
"There are also trade benefits with increasing demand for proof of origin and sustainability for Australian livestock and meat products, so this will help to maintain and develop market access overseas."