Last night saw the Federal Government deliver the 2023-24 Budget, with cost-of-living relief at the top of Treasurer Jim Chalmers' agenda.

Russell Wiese from CGT Law has provided a detailed commentary available HERE

In addition, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have identified extracts from the Budget and supporting papers (impacting the international supply chain, logistics and border clearance sectors) which are outlined below:

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY

The Budget includes more than $1 billion in new biosecurity investments over the next four years, with over $260 million in new funding per year, ongoing and locked, from 2027-28.

This funding increase is permanent. The government is locking in increased, long-term funding for a strengthened biosecurity system to help safeguard against biosecurity incursions that would impact trade, jobs, regional Australia, health and our environment.

The $1.03 billion Budget package delivers the government's election commitment to deliver long-term, sustainable funding that goes directly to strengthening Australia's biosecurity system.

From 1 July 2024, a new cost recovery charge on low value ($1,000 or less) goods imported into Australia by air or sea will be introduced.

This charge (approximately 40 cents) will cover the cost of biosecurity clearance on imported goods that are not currently subject to cost recovery – up to now taxpayers have been paying this cost.  This fairer system is expected to raise around $27 million per year ongoing.

The current Sea Full Import Declaration (FID) charge was increased from $49 to $58 on 16 January 2023 to implement cost recovery for the 2021-22 hitchhiker pest measure.

Following the first comprehensive review of biosecurity cost recovery since 2015, further increases to existing fees and charges are expected from 1 July 2023.

These changes are estimated to recover an additional $36 million in 2023-24, with annual reviews to ensure actual costs are being recovered into the future.

Improvements to the Biosecurity system

Immediate and longer-term improvements will be made to help minimise delays and costs at the border and to show where funding is being spent.

These include:

• $145.2 million over three years from 2023-24 to deliver the Simplified Targeting and Enhanced Processing System - a modern, integrated digital system that to improve the effectiveness and efficiency of biosecurity clearance for cargo. Making our systems as efficient as possible will free up our biosecurity workers for other jobs and reduce congestion at the border.

• Annual publication of biosecurity income and expenditure to provide transparency and accountability.

• Working with industry to consider options for greater effectiveness and efficiency to meet emerging threats, and to consider further reform to funding arrangements.

SIMPLIFIED TRADE SYSTEM

The Government will provide an additional $23.8 million in 2023–24 to continue initiatives to modernise and improve Australia's international trade system, including delivering the simplified trade system reforms and continuation of the Trade Information Service.
 
DEPARTMENT OF FOREIGN AFFAIRS AND TRADE 

$3.9 million over two years from 2023–24 for a review of policy options to reduce carbon leakage, including of an Australian carbon border adjustment mechanism.

AUSTRALIAN TAX OFFICE 

The tax office will receive $588 million in funding for increased GST compliance, which is estimated to rake in $788 million in revenue next financial year alone, and $3.8 billion for the four financial years from July 1, 2023.

AUSTRADE

The Government will achieve savings of $61.0 million over 4 years from 2023–24 by reducing funding for the Export Market Development Grants program. No funding already committed or applications currently under assessment will be impacted by this measure. The savings from this measure will be redirected to fund Government policy priorities in the Foreign Affairs and Trade portfolio.

WESTERN SYDNEY AIRPORT

Equity funding to WSA Co Limited for the construction of facilities to support border services and law enforcement operations at the Western Sydney International (Nancy-Bird Walton) Airport, with the financial implications not for publication (nfp) due to commercial sensitivities • $18.5 million in 2023–24 for border agencies to undertake design and planning work for operations.

Sal Milici - Licensed Customs Broker 
General Manager Trade Policy & Operations - FTA / APSA
Chair – Container Cleanliness Working Group | Global Shippers Forum (GSF)