| DOMESTIC PRODUCER LEVY
Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) provided a detailed submission to the Rural and Regional Affairs and Transport Legislation Committee including a 3-point plan recommending the federal government: - does not proceed with the complex proposed levy (referred to by the National Farmers Federation as a 'fresh food tax') costing Domestic Producers annually $47.5m being 6% of the budgeted BPL;
- increase the Full Import Declarations (FID) cost recovery paid by Importers 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, that cost importers and exporters more than $1.3 billion over the last three calendar years.
Submission available HERE
The FTA and APSA position were supported by major producer groups and appears to have been a significant contributing factor to the federal government not progressing to vote on the Agriculture (Biosecurity Protection) Levies Bill 2024 [Provisions] and Related Bills.
While the Domestic Producer levy will not proceed on 1 July 2024, the concept remains alive with the Department of Agriculture, Fisheries and Forestry (DAFF) to progress renewed discussions with FTA, APSA and other peak industry bodies as a part of the recently established Sustainable Biosecurity Funding Advisory Panel.
E-COMMERCE CARGO REPORTER LEVY
As outlined in our 24 May 2024 and 31 May 2024 member updates, FTA has been advocating for a delay to the proposed 1 July 2024 implementation of the new cost recovery charge for biosecurity clearance of declared low value goods (valued at AUD $1,000 or less).
As outlined in Import Industry Advice Notice 119-2024, implementation of this new charge will now commence on 1 October 2024 with the intent to provide sufficient time for DAFF to engage with industry to address outstanding concerns in administering the arrangements.
A special note of appreciation is extended to member Cassie Shaw (National Operations Manager, Australasian Mail Services) who was the leading voice escalating concerns to DAFF and supporting the FTA advocacy for a deferment of implementation.
It is important to note that recent discussions (involving other representative groups) examining issues relating to the proposed E-commerce Cargo Reporter levy has led to a call for a broader review on alternative collection methodologies to cast a wider net on all low value imports and to ensure a level playing field between logistics providers and Australia Post.
FTA and APSA will keep members up to date on these developments. |