FTA and APSA advocacy alongside Peak Producer Groups
Tackling the Fresh Food Tax
Further to our member notice from 15 April 2024 (where we advised that the Freight & Trade Alliance (FTA) and the Australian Peak Shippers joint submission on the Agriculture (Biosecurity Protection) Levies Bill 2024 [Provisions] and related bills was accepted by the Senate Rural and Regional Affairs and Transport Legislation Committee), we now can advise the final Senate report has been released and is available HERE
OUTCOME OF SENATE REPORT
Not surprisingly, the majority government senators on the committee recommend voting for the Bill (with retention of a Biosecurity Protection Levy payable by producers) with a dissenting view from coalition senators.
Of significant note, the FTA and APSA submission and 3-point plan was referenced six (6) times in the report.
FTA and APSA have submitted a 3-point plan recommending the federal government:
- does not proceed with the complex proposed levy against producers (referred to by The National as a 'fresh food tax' costing producers annually $47.5m being 6% of the budgeted BPL);
- increase the Full Import Declarations (FID) cost recovery to recoup the above $47.5m shortfall, and additional funds to address interim remedial action to support import processing until additional permanent resources and benefits of modernised systems are realised; and
- offset the increased FID cost recovery impost on importers, by introducing a Mandatory Code (as recommended by the Productivity Commission in their Review of Australia's Maritime Logistics System) to address the current incontestable Terminal Access Charge (TAC) regime, currently costing importers and exporters more than $500m per annum.
Report extract:
Several submitters pointed to potential alternatives to the BPL, including recommendations of the Craik Review relating to the introduction of a container levy. The NFF, for example, emphasised the need for increased contributions from risk creators, including container imports, noting Australian agriculture has advocated for many years the need for a broad-based levy on inbound containers to help fund the biosecurity system.
This call has been supported by environmental and invasive species organisations.
In addition, the Freight and Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) supported 'the need to protect against biosecurity risks and indicated they would be prepared to pay an additional levy or cost recovery fee on the proviso that an appropriate proportion directly translates to commensurate improved and immediate trade facilitation measures'. This initiative from the FTA and APSA was supported by many submitters, including the NSW Farmers' Association, Australian Grape & Wine, and Western Australian Farmers' Federation.
NEXT STEPS
FTA and APSA are continuing to collaborate with peak producer groups to achieve pragmatic outcomes aligned to the 3-point plan. This included FTA and APSA involvement in a 'roundtable' briefing with Senator Pocock on Monday 13 May 2024. Subsequent advice from the Senator was that he has spoken to Minister Watt and informed him that the concerns he holds in relation to the Bills means he cannot support its passage through the Senate.
Feedback from the National Farmers Federation (NFF) suggests that other key senators (including The Greens and Jacqui Lambie) also oppose the Bills jeopardising its passage.
FTA and APSA will continue its close engagement with all stakeholders (industry and government) with an aim of achieving outcomes that will best meet funding requirements to safeguard against Biosecurity risks while introducing measures to facilitate legitimate trade including the regulation of unfair industry charging practices.
Sal Milici - Licensed Customs Broker
General Manager Trade Policy & Operations - FTA / APSA