ILLICIT TOBACCO ENFORCEMENT REFORMS Senate Committee Recommends Passage of Bill

Monday, October 12, 2026

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Who does this notice affect?

Importers, customs brokers, freight forwarders and logistics providers.

ILLICIT TOBACCO ENFORCEMENT REFORMS

Senate Committee Recommends Passage of Bill

Further to previous member notices and Freight & Trade Alliance (FTA's) submission to the Senate Legal and Constitutional Affairs Legislation Committee, the committee has now tabled its report into the  Customs and Other Legislation Amendment (Illicit Tobacco Enforcement Modernisation and Other Measures) Bill 2026

As previously advised, FTA's submission focused on:

  • the proposed "all reasonable steps" obligations applying to customs brokers, depot licence holders and warehouse licence holders;
  • the need for practical Australian Border Force (ABF) guidance before commencement of Schedule 5;
  • industry education and consultation;
  • technology-enabled measures to strengthen supply chain integrity; and
  • the proposed customs licensing committee arrangements.

Notably, the Committee specifically referenced FTA's submission, including concerns raised by members regarding the practical application of the new obligations and the need for guidance to ensure expectations are understood and applied consistently across industry.

Of particular significance, the Committee encouraged the Department of Home Affairs and the Australian Border Force to work with affected stakeholders, provide guidance materials and undertake education activities to adequately prepare industry for the reforms.

FTA notes that Schedule 5, which includes the new licensing obligations affecting customs brokers, depot operators and warehouse operators, does not commence immediately upon Royal Assent. The legislation provides for commencement by Proclamation, or automatically within 12 months if not proclaimed earlier.

This provides an important opportunity for continued engagement between industry and government regarding implementation, guidance material and education activities.

Next Steps

FTA will continue engagement with the Australian Border Force and Department of Home Affairs, with particular focus on:

  • practical guidance relating to the "all reasonable steps" provisions;
  • industry education and awareness initiatives;
  • implementation timeframes; and
  • opportunities to further strengthen supply chain integrity through technology-enabled solutions.

FTA's submission to the Senate inquiry remains available to members HERE: FTA/APSA MEMBER LOGIN REQUIRED

Access to the entire report from the Senate Committee is available HERE

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


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