Biosecurity Import Levy
The Australian Government announced the introduction of a Biosecurity Import Levy in the 2018-19 Budget with an expectation to raise $325M over 3 years from a proposed commencement date of 1 July 2019.
The associated modelling referred to collection of $10.02 per twenty-foot equivalent (TEU) and $1 per tonne for non-containerised cargo with stevedores and port operators to be the collection agents.
Significant objections from numerous industry sectors have led the Department of Agriculture and Water Resources to amend its advice to the Government about the Levy collection mechanism(s) and the quantum to be collected. This has not appeased industry’s concerns.
Freight & Trade Alliance (FTA) Director, Paul Zalai, has penned a fantastic commentary on where the debate stands on this serious cost impost issue ahead of the looming Federal Election.
As Paul points out, it is crunch time for the Department regarding the advice they will give to the Minister on industry’s unanswered concerns, and whether the Government will forge ahead by drafting legislation and subordinate regulation without listening fully to the concerns raised.
FTA commentary – Biosecurity Import Levy
Freight & Trade Alliance (FTA) continues its advocacy in terms of the Biosecurity Import Levey which appears likely to add to the increasing list of surcharges, cost recovery fees and taxes which collectively add a substantial dollar value to the price of landed goods into Australia.
Following a forum hosted on 10 January 2019 by the Department of Agriculture and Water Resources, we have prepared the ATTACHED detailed commentary addressing the four main questions being asked by various industry sectors:
1. What is the true nature of the levy?;
2. Why is the sea cargo sector carrying the levy burden alone?;
3. What have been the changes since the original model was announced?; and
4. Assuming the levy will proceed, is there a smarter way for the government to collect this revenue?