Will common sense prevail on the Biosecurity Import Levy?

 Will common sense previal on the Biosecurity Import Levy?THE ALLIANCE

Who does this notice affect?

Importers, freight forwarders, customs brokers, stevedores, shipping lines, airlines, express couriers, e-commerce providers and Cargo Terminal Operators

 

Biosecurity Import Levy

 

Freight & Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) members have understandably been seeking updates on the proposed Biosecurity Import Levy.

The concern from members and the wider industry is that depending on how the new levy is to be collected and passed on through the supply chain, adequate notice is required to allow industry participants to implement systems and to have discussions with customers about potential cost increases.

While we are unfortunately not in a position to provide definitive answers, we trust that the following provides useful background and the current status of this new levy.

 

Background

 

As members will recall, the Biosecurity Import Levy was announced in the 2018 Federal Budget with an aim to collect $325M over 3 years from a commencement date of 1 July 2019.
 
Since that time there has been significant controversy surrounding the implementation of the levy, ultimately leading to the former Minister for Agriculture and Water Resources announcing the formation of the Biosecurity Levy Steering Committee tasked with recommending the possible scope and design for a levy.

As outlined in previous member notices, I was privileged to be appointed by the Minister to participate with eight other industry representatives in the committee led by an independent chair (Mr David Trebeck) and supported by Pegasus Economics.

To allow the steering committee adequate time to report and as outlined in the last Federal Budget, the government announced a new proposed date of 1 September 2019 and a relatively small loss of revenue associated with this deferred commencement.