What You Need to Know About the 2024-2025 Australian Federal Budget
The 2024-2025 Australian Federal Budget was released last month, and while it specifically mentioned measures likely to affect Importers and Exporters, a number of nuances implied are worth exploring in more detail.?
ABF Funding?
To start things off,? an additional $100m has been provided to the Department of Home Affairs (‘DHA’) and its divisions, including the Australian Border Force (‘ABF’). Many who have noted operational challenges and delays that appear to have been caused by general departmental underfunding over the past few years will welcome this.??
Nuisance Tariff?
The proposed removal of 457 ‘nuisance tariffs’ will be implemented from the 1st of July 2024. The tariffs under review are largely managed already by importers utilising FTA’s or concessional instruments, but the reduction in administrative time and cost from compliance with these duty mitigation measures should not be ignored. Importers should also consider the timing of the implementation – intentional delay of clearance, or temporary warehousing arrangements, may render currently dutiable goods as duty free after the 1st of July.?
Simplified Trade?
The Simplified Trade System (‘STS’) has been eagerly anticipated, but the latest budget indirectly suggests that it may not be all that we had hoped for. $29.9m has been allocated over the next four years to the Taskforce, which will be?diminished to a smaller Trade System unit of Austrade from July 2024. Any importers and service providers holding their breath awaiting a meaningful upgrade to the Integrated Cargo System portal will be disappointed by this news.?
Export Controls?
Defence Export Controls also received some attention in the 2024-2025 Federal Budget, with the Government allocating $28m toward the Defence Trade Controls Amendment Act 2024 and the Department of Defence’s online permit portal. Australian exporters of controlled and dual use goods will need to review the new laws and confirm that they remain compliant.?
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