DCN May Edition 2019

INDUSTRY OPINION
Industry must benefit from
the Biosecurity Imports Levy
Zoran Kostadinoski runs his eye over plans for the Biosecurity Imports Levy
and notes areas for possible improvement
IT HAS BECOME EVIDENT
funding the challenged biosecurity system,
international trade is an easy target for
under the existing cost recovery model.
government agencies to generate revenue
and manage the border and biosecurity
COLLECTION MODEL
systems. This Biosecurity Imports Levy
In any international trade transaction cost
was a recommendation of the 2017
transparency is important and for this
Independent review of the capacity of
reason the CBFCA believes the committee
Australia’s biosecurity system. The levy is
and the minister need to consider the
estimated to raise $325m from 2019–20
collection model via the existing Full
and was scheduled to start on 1 July 2019.
Import Declaration, as this is transparent
The government has changed the start date
and prevents the collector adding
to 1 September 2019. An Industry Steering
additional administration charges on top
Committee, appointed by the minister
of the levy. This is already an acceptable
for agriculture and water resources, is to
practice within the importing community,
consult with industry on the proposed levy
which will ultimately end up paying the
and provide advice to the minister. CBFCA
levy and passing down the supply chain to
representatives recently met with the
consumers. The CBFCA opposes any cross-
committee to discuss the levy design and
subsidisation, as all biosecurity system
further responded with a submission on the
discussion paper released for comment.
users should pay the levy.
Zoran Kostadinoski, regional manager for
Victoria, Tasmania and South Australia, CBFCA
COLLECTION ALTERNATIVES
CBFCA VIEW
If the committee determines the FID is
improvements to frontline biosecurity
The CBFCA’s view is that Australia’s
an unviable collection model, the CBFCA
protection and improved service levels.
biosecurity system must be underpinned
supports collection models that do not
The biggest impact for CBFCA members
by a modern and effective regulatory
involve any commercial operator, as this
and clients is in the imports program.
framework. Currently, biosecurity is
levy will be an impost on operators, and
This is mainly due to the department’s
managed under the Biosecurity Act 2015,
the levy will increase substantially. In the
inability to manage the increased number
and related regulations. The CBFCA notes
case of sea freight it should be levied on
of FIDs submitted by industry for brown
Australia’s biosecurity risks have changed
the port authority based upon containers
marmorated stink bugs’ assessment with
significantly in the last decade.
discharged, passengers and tonnage as the
existing resources and out-dated systems,
The CBFCA understands the biosecurity
ports do now and will include it in the port
resulting in failure to meet current client
system includes pre-border, at-the-border
service charges, which are regulated. The
service standards during the BMSB season.
and post border activities, which need to
same applies to air freight where it could
be funded or cost recovered, in order to
be levied on the airport authority. The levy
FINAL THOUGHTS
reduce the regulatory burden on compliant
then will be collected as an expense to
The CBFCA has made a submission
businesses. The CBFCA hopes increased
operate an international port, airport, or
highlighting these issues to the inspector-
funding will enable the management of
post facility, reducing the risk of any levy
general of biosecurity, Dr Helen Scott-
biosecurity risks in a responsive manner,
increase in a commercial environment.
Orr, who has undertaken an independent
to enhance Australia’s capacity to manage
review - assessment of the effectiveness of
biosecurity risks and ensures Australia
INDUSTRY MUST BENEFIT
biosecurity measures to manage the risks of
remains competitive in international trade.
The CBFCA will continue to advocate
BMSB entering Australia.
that the department ensure effective
The CBFCA looks forward to the findings
THE CONCERN
biosecurity outcomes are delivered without
from the independent review and working
The CBFCA has concerns that funds from
unnecessary impediments to trade.
collectively with all key stakeholders to
the levy will go into consolidated revenue
The CBFCA will also advocate for
ensure that the biosecurity protections
CBFCA
and not allocated to the imports, exports,
and seaports programs, which are currently
government commitment to allocate
significant revenue from the levy to
are met while ensuring the viability of
international trade.
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