FTA / APSA INTERVIEW ON ABC NATIONAL - BIOSECURITY PROTECTION LEVY & TERMINAL ACCESS CHARGES

As members will recall, the 2023-24 Federal Budget established a need for 'sustainable funding' that goes directly to strengthening Australia's biosecurity system; the concept was for this to be paid for on a 'shared responsibility' basis taking total annual revenue from $536.2m to $804.6m.

BIOSECURITY PROTECTION LEVY

By 2024-25, it was anticipated that contributions would be made as follows:


The 'new and permanently increased funding' was planned to contribute towards:

• providing $845m over four years from 2023-24, and $255m per year ongoing from 2027-28, to maintain biosecurity policy, operational and technical functions on a sustainable basis;
• $40.6m over four years from 2023-24, and $12m per year ongoing from 2027-28, for the Indigenous Ranger Biosecurity Program; and
• $145.2m over three years from 2023/24 for the Simplified Targeting and Enhanced Processing System (STEPS) being a modern digital system to improve the effectiveness and efficiency of biosecurity clearance in cargo pathways. 

NOTE: The Department of Agriculture, Fisheries and Forestry (DAFF) will be providing an update on STEPS at the upcoming CPD Border Compliance Program events - register HERE.

WITHDRAWAL OF THE BPL BILLS

While the above was the government's intent, what has transpired has impacted this financial planning.

Earlier this week (the morning of Wednesday 12 February 2025) and after much public debate, the highly contentious Biosecurity Protection Levy (BPL) Bills were withdrawn from the Senate. In effect negating an additional $47.5m collection that was planned to be paid by producers.  
 
In doing this, the Federal Government has reiterated its commitment and investment in 'sustainable, broad-based, biosecurity funding'. They have also highlighted the BPL was only one part of the funding solution and there is no 'immediate' funding change for the Commonwealth's biosecurity activities.
 
It is unlikely that the revenue shortfall will be forgone, and extremely likely that the burden will fall on the 'risk creators' i.e. importers. While the government has previously indicated that such action would be a breach of World Trade Organisation (WTO) rules, in a contemporary environment with major global powers reintroducing protectionist policies, anything is possible.

FTA/APSA POSITION ON COST RECOVERY
 
In anticipation of an increased financial burden to be imposed on importers and as outlined in our pre-budget submission, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have maintained a position that the border and biosecurity departments must establish more sophisticated mechanisms for cost recovery rather than a blunt instrument of simply adding more costs across the board against all importers.

Costs must be commensurate with the risk generated and in doing so, act as an incentivisation for industry adoption of best practice to minimise border and biosecurity risks.  
 
FTA/APSA IN THE MEDIA

FTA / APSA had the opportunity on ABC National Radio yesterday (13 February 2025) to address this position on cost recovery, make extensive references to incontestable charges administered by stevedores and empty container parks (totaling more than $2BN annually) and a call for government intervention.
 
We are pleased to advise that this interview aired on 'Country Hour' Victoria, Queensland South Australia; recording available HERE (START 39min 33sec to END 45min 25sec).
 
FTA / APSA has also shared its position with fellow representatives of the Sustainable Biosecurity Funding Advisory Panel in preparation for its May 2025 meeting and will address this position in next month's bi-lateral meetings with Australian Border Force (ABF) executives.

Stay tuned for more !!