Last night saw the Federal Government deliver the 2026-27 Budget, with 'resilience and reform' at the top of Treasurer Jim Chalmers' agenda.
From an international supply chain, logistics and border clearance perspective, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have made preliminary observations identifying the following extracts from the Budget and supporting papers.
AUSTRALIAN TRUSTED TRADER / TARIFF REFORM
The Budget includes $7.6 million over four years from 2026–27 (and $0.2 million per year ongoing) to expand the Australian Trusted Trader (ATT) program through the establishment of a new business development function and implementation of an Approved Exporter Scheme.
The Approved Exporter Scheme will be available to accredited Australian Trusted Trader exporters as an opt-in arrangement and is expected to remove the requirement to obtain Certificates of Origin to access tariff reductions under certain Free Trade Agreements, including the ASEAN-Australia-New Zealand Free Trade Area and the Regional Comprehensive Economic Partnership Agreement.
The ATT program continues to operate as a trade facilitation framework for importers and exporters able to demonstrate strong trade compliance, governance and supply chain security practices.
The Budget also includes the abolition of a further 497 "nuisance tariffs" from 1 July 2026, building on the removal of 457 tariffs in July 2024. The measures are expected to streamline approximately $23 billion in trade and reduce annual compliance costs by an estimated $157 million.
Importantly, Treasury has opened consultation on a further tranche of 86 tariffs proposed for abolition from 1 July 2027. Many of these tariffs are understood to have limited practical application following the implementation of various Free Trade Agreements, where goods are already imported duty free under preferential arrangements.
FTA/APSA encourages members to review the consultation process closely, particularly where existing tariff settings, tariff concession orders, or preferential origin requirements may impact commercial arrangements or customs processes.
Submissions to Treasury close on 11 January 2027.
The Budget papers also reference continued support for simplified trade regulatory reforms intended to streamline business interaction with government while maintaining border integrity.
BIOSECURITY The Budget includes additional staffing for the Department of Agriculture, Fisheries and Forestry (DAFF) to support delivery of cost-recovered biosecurity functions at Australian borders, including additional biosecurity officers at airports and seaports.
The papers reference continued investment in strengthening and sustainably funding Australia's biosecurity system.
The Budget also includes: - streamlining of biosecurity border processes to assist fertiliser imports reaching farmers more efficiently
- $8.2 million in relief through delaying cost recovery charges for agricultural exports
FREIGHT / TRANSPORT / SUPPLY CHAIN RESILIENCE The Budget includes a range of freight and transport resilience measures, including: - $55 million for a Transport Resilience and Capacity Kickstart pilot program intended to incentivise increased movement of freight by rail and coastal shipping
- continued work on interstate rail operations and connectivity improvements
- acceleration of heavy vehicle reforms through National Competition Policy processes to improve freight productivity and support uptake of zero-emission heavy vehicles
The Budget also includes: - $10.3 billion for transport projects, including $8.6 billion over 11 years for priority road and rail infrastructure
- $14.8 billion in broader fuel security and price relief measures
- consolidation of the Inland Rail project at Parkes, NSW, returning $4.4 billion in equity to the Budget, partially offset by $1.8 billion in new ARTC freight rail equity
ILLICIT TOBACCO Tobacco excise revenue forecasts have been revised down by $1.2 billion in 2026–27 and by $8.0 billion over the five years from 2025–26 to 2029–30, reflecting continued weakness in tobacco excise collections and lower excisable tobacco volumes. The Budget includes additional funding targeting serious and organised crime and illicit tobacco activity, including: - $50.0 million to sustain Australian Criminal Intelligence Commission operations and associated intelligence systems
- $40.4 million to bolster responses to transnational, serious and organised crime
- $14.0 million to support state and territory capability to disrupt illicit tobacco and e-cigarette markets, including transport, storage and disposal of seized goods
FUEL SECURITY The Budget includes a $3.2 billion Australian Fuel Security Reserve measure intended to increase long-term fuel supply and storage capacity. The measure, together with increases to the Minimum Stockholding Obligation, is intended to increase Australia's diesel and jet fuel reserves by an estimated 50 days.
UKRANIAN ORIGIN GOODS The duty exemption applying to Ukrainian goods will be extended for a further two years until 3 July 2028.
The measure maintains a "Free" rate of customs duty for goods that are the produce or manufacture of Ukraine, excluding excise-equivalent goods such as certain alcohol, fuel, tobacco and petroleum products. |