What You Need to Know About the 2024-2025 Australian Federal Budget

Posted by Steven Roy
Blog originally posted on 05/06/2024 09:45 AM


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. 

Other Considerations 

Comparative to the rather modest spending on STS and Export Controls, the DHA has committed a further $188m in combatting illegal tobacco trade via a multi-agency force. This speaks volumes about the Australian government’s sentiment toward illicit tobacco activities, with an increased focus on depot activities, cargo reporting, and intervention pre-importation.  

A much smaller budget has also been allocated toward border enforcement, with a two-year goal of preventing the importation of engineered stone goods.  

Lastly, while there was no clear-cut news on a European-Australian FTA, the Government has extended its duty exemptions on goods from Ukraine to July 3rd, 2026.  

If any of the highlighted topics are of interest to your business, or if you feel there is another trade compliance matter that you could use some assistance with, please don’t hesitate to reach out to our Tradewin Australia team. 

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Topics: Australia

Blog originally posted on 05/06/2024 09:45 AM

Steven Roy

Written by Steven Roy

Steven joined the Tradewin team with over 15 years of industry experience, including extensive exposure to Customs and freight forwarding practices. Prior to joining Tradewin, Steven was a Customs Brokerage Manager and has successfully counseled Boston Scientifics on intricate supply chain and trade compliance matters, using his strong operational background to clearly explicate sophisticated yet practical solutions. His coverage of duty mitigation strategies, regulatory compliance management, and interaction with other government agencies regularly includes consideration of excise, countervailing and anti-dumping duties, production assists, Tariff Concession Orders, By-Laws, and Biosecurity regulations. Steven is a licensed Customs Broker in Australia, holds accreditation with the Department of Agriculture and Water Resources, and has completed a Bachelor of Applied Science with Queensland University of Technology.