UPDATE - BIOSECURITY COST RECOVERY AND LEVY

Thursday, May 23, 2019

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) will be escalating advocacy on spiralling costs effecting importers and intermediary service providers across sea and airfreight, including surcharges by terminal operators and via border / biosecurity cost recovery fees and levies.

In terms of Biosecurity, FTA / APSA note the findings of the recent Australian National Audit Office (ANAO) report and look forward to ongoing engagement with the department and industry colleagues to achieve best practice reforms via the Department of Agriculture Cargo Consultative Committee (DCCC).

To set the scene, please also refer a recent article published by FTA in MHD MAY/JUNE titled REDUCING THE HAYSTACK - Its time to reward those in international trade who are taking measures to minimise risk

Issuance of 2019-20 approved arrangement annual levy

As members will recall, FTA advocated for cost recovery reforms since the 2017 introduction of the blanket $2900 approved arrangement fee as administered by the Department of Agriculture & Water Resources.
 
A significantly improved outcome was achieved last year in the form a of a reduction in the annual levy to $500. We are pleased to advise that this rate has again been maintained for the 2019 /20 period - a complete list of fees is available HERE.

As noted on the Department's website, your nominated email on your finance account will receive a statement every few weeks.  However, you can now send statements and invoices to your nominated email at any time.  To do this:
  1. Go to online.agriculture.gov.au/payments/faces/home and select payment enquiry
  2. Enter your account or invoice number and select check status
  3. Select email current statement/invoice.

If you need to update your contact details for receiving invoices, please email Accounts Receivable Helpdesk.

COMMENTARY

FTA will continue to advocate for a long-term reform of a further reduction in the annual fee for the operators of broker class 19.1 and 19.2 approved arrangements with full cost recovery on a per entry basis.

Importantly, if achieved, this will assist supply chain participants in effectively passing on cost recovery costs to importers at a net rate as charged by department.

Update on the Biosecurity Import Levy

Following the 2 April 2019 Federal budget, the 1 July start date for the imposition of the new Biosecurity Imports Levy was officially deferred to 1 September 2019. For further background please refer HERE

The Ministerial appointed Biosecurity Levy Steering Committee (comprising the following members) have since been reviewing submissions to its Discussion Paper and are now close to providing a formal report to the re-elected Morrison government. 
 
  • Mr David Trebeck - independent chair
  • Paul Zalai, Freight & Trade Alliance (FTA)
  • Margie Thomson, Cement Industry Federation
  • Mike Gallacher, Ports Australia
  • Rod Nairn AM, Shipping Australia
  • Brian Lovell, Australian Federation of International Forwarders (AFIF)
  • Tony Mahar, National Farmers' Federation
  • Michael Sousa, Qube Holdings
  • Peter Gniel, Australian Institute of Petroleum
  • Joel Katz, Cruise Lines International Association Australasia
 
COMMENTARY

Following the receipt of the report, the quantum and collection mechanism will be subject to a cabinet discussion/decision, legislative drafting and Parliamentary debate (including the potential of a Senate inquiry). There will also be a need to assess the scope of systems' changes to collect the levy.

It is important to note that the above factors may have an adverse impact on achieving the 1 September target date.

Further information


Issuance of 2019-20 approved arrangement annual levy
  • For further information regarding Broker approved arrangements, please email Broker Accreditation
  • For further information regarding Non-broker approved arrangements, please email AA Canberra
  • For further information on statements, invoices or other billing enquiries, please email Accounts Receivable Helpdesk
Biosecurity Import Levy

I look forward to meeting with members at our upcoming CPD & CBC - Border and Biosecurity Compliance Program (19 June 2019 - Hyatt Place, Essendon Fields) where I will provide a detailed update on the latest Biosecurity Import Levy developments and insights on government cost recovery and tax reforms ... read more

In the interim for further information, please contact me direct at pzalai@FTAlliance.com.au or 02 99751878
Paul Zalai - FTA / APSA