ANAO AUDIT HIGHLIGHTS NEED FOR TRANSPARENT AND EQUITABLE BIOSECURITY COST RECOVERY

Friday, July 31, 2026

Who does this notice affect?

Importers, exporters, customs brokers, freight forwarders, transport and depot operators, Approved Arrangements and Biosecurity Industry Participants

ANAO AUDIT HIGHLIGHTS NEED FOR

TRANSPARENT AND EQUITABLE BIOSECURITY

COST RECOVERY

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) note the release of the Australian National Audit Office (ANAO) performance audit Cost Recovery for Biosecurity in the Department of Agriculture, Fisheries and Forestry, examining the effectiveness of the Department of Agriculture, Fisheries and Forestry's (DAFF) administration of biosecurity cost recovery arrangements.

The ANAO concluded that DAFF's administration of biosecurity cost recovery is "partly effective", identifying opportunities to improve transparency, governance and the alignment between regulatory costs and the fees charged to industry. The audit made six recommendations, all of which were either agreed or agreed in principle by DAFF.

Among its key findings, the ANAO identified that:

DAFF could not consistently demonstrate that all cost recovery charges reflect the minimum efficient cost of delivering regulatory services;
not all charges were directly informed by DAFF's cost recovery model;
stronger management of under- and over-recovery risks is required; and
improved visibility of the costs associated with regulatory activities would strengthen confidence in the cost recovery framework.

The report also reinforces broader principles relevant across government, including the importance of clearly mapping regulatory costs, ensuring cost recovery arrangements accurately reflect the efficient delivery of services, and actively managing the risks of under- and over-recovery.

FTA/APSA Commentary

FTA/APSA has long advocated for a biosecurity cost recovery framework that is transparent, efficient, equitable, and sustainably funds Australia's world-leading biosecurity system while preserving the nation's international trade competitiveness.

Through our representation on the DAFF Sustainable Biosecurity Funding Advisory Panel, FTA/APSA is positioned to advocate for reforms that strengthen accountability, improve cost allocation transparency and ensure that regulatory costs are recovered fairly and consistently across all import pathways.

Our objective is to support a funding model that delivers a resilient and effective biosecurity system, provides certainty for industry and maintains a genuine level playing field for all participants in the international supply chain.

Importantly the ANAO findings reinforce the importance of ensuring that regulatory costs are recovered consistently across all import pathways.

Of particular interest to FTA/APSA members is the continued expansion of Self-Assessed Clearance (SAC) consignments entering Australia through the international postal stream.

As these volumes of low-value imported goods continue to grow, FTA/APSA maintains that Australia's biosecurity cost recovery framework should ensure that all import pathways contribute equitably where they generate comparable regulatory activity, supporting a genuine level playing field.

As import volumes continue to evolve, FTA/APSA will continue to engage with DAFF and the government on future reviews of biosecurity cost recovery arrangements, advocating for reforms that provide certainty for industry, allocate regulatory costs transparently and proportionately, and support an effective, sustainable biosecurity system.

For further information, members are encouraged to review the ANAO report, Cost Recovery for Biosecurity in the Department of Agriculture, Fisheries and Forestry.

Sal Milici - Licensed Customs Broker
General Manager Trade Policy & Operations - FTA / APSA