2 April 2024
Who does this notice affect?
All customs brokers, importers, self-reporting importers, freight forwarders of goods AUD$1,000 or less in value.
What has changed?
A new biosecurity cost recovery charge will commence from 1 July 2024 – referred to as the Biosecurity Self Assessed Clearance (SAC) Charge. This was announced by the Australian Government as a key element of its 2023-24 Budget Biosecurity Sustainable Funding measures. This information includes refinements to the design of the charge following earlier industry feedback.
This charge will be applied at a set rate per SAC declaration (long and short form) for low value goods imported into Australia.
- The proposed rate is 40 cents per declaration – the final amount will be confirmed shortly following finalisation of the estimate for SAC declaration numbers.
- It will be imposed as a government cost recovery tax – it is not a fee for service.
- The entity lodging the SAC declaration into the Integrated Cargo System (ICS) will be liable for the charge.
- The entity will be required to remit total SAC charge amounts, quarterly in arrears, to the Department of Agriculture, Fisheries and Forestry (DAFF).
- Unlike the biosecurity Full Import Declaration charges, this charge is not being collected by the Australian Border Force.
- The charge will be given effect through regulation anticipated to be in place by May 2024.
- Existing cost recovery charge provisions in the Biosecurity Act 2015 and related regulations and charging legislation will apply to this charge e.g. provisions in relation to non-payment.
Impacted entities are encouraged to contact DAFF to ensure they are ready.
Impacted entities are encouraged to contact DAFF (SACcostrecovery@aff.gov.au) if they wish to discuss this proposal, seek advice on framing customer notifications regarding the new border charge or the proposed collection cycle. For example, whether you would seek to agree with DAFF a monthly remittance cycle rather than the default quarterly requirement.
In relation to the proposed collection cycle, it is currently proposed that:
- DAFF will advise known entities ahead of upcoming SAC charge year on rate and obligations together with providing general advisory notices throughout the year.
- DAFF will then provide entities with a notification that payment is due, with a return form. DAFF can, on request, advise its understanding SAC lodgements associated with the entity.
Further information
A consultation cost recovery implementation statement (CRIS) to set out the context and cost recovery foundations for this charge will be released shortly.
Charge guidance material will be prepared, and a dedicated webpage will be set up for the implementation and initial collection phase. In the meantime, previous information is available from Self-Assessed Clearances cost recovery).
This follows IIAN 228-2023: Feedback on Self-Assessed Clearances (SAC) Cost Recovery.
For further information or to raise issues related to implementation and administrative arrangements please contact (SACcostrecovery@aff.gov.au).