May 12, 20233 min read

Federal Budget Announcement 2023-24

This week we’ve seen Treasurer Jim Chalmers’ deliver the 2023-24 Federal Budget with biosecurity investments being a key focus and an overall increase in costs for local Australians who will have to shoulder the burden of the Government’s decisions.

We have identified key takeaways that may impact you, your understanding and future planning.

AUSTRALIAN AGRICULTURAL FISHERIES AND FORESTRY INDUSTRY

What was announced:

There will be an increase in funding of more than $1 billion over four years to “strengthen Australia’s biosecurity system” to “maintain biosecurity policy, operational and technical functions on a sustainable basis, the cost of which will be partially met through the introduction of cost recovery arrangements for the clearance of low value imported cargo”.
$40.6 million over four years from 2023-24 for the Indigenous Ranger biosecurity Program in Northern Australia and and $12 million per year ongoing from 2027-28.

What it means:

From 1 July 2024, a new cost recovery charge on low-value ($1,000 or less) goods imported into Australia by air or sea will be introduced. This charge will cover the cost of biosecurity clearance on imported goods that are not currently subject to cost recovery – up to now taxpayers have been paying this cost.
This is great for Australian Agricultural Fisheries and Forestry Industry as increased costs to the importation of parcels and non-letter mail will lead to increased budgets for the Department of Agriculture, Fisheries and Forestry to allocate to sourcing further staff and implementation of border measures to protect our flora and fauna.
These arrangements are expected to raise a much-needed $81.3 million for the industry over three years from 2024-25.

MODERNISED & SIMPLIFIED TRADE SYSTEM

What was announced:

$145.2 million over three years from 2023-24 for “modern digital systems in cargo pathways that are integrated with business systems, cut red tape and streamline regulation and service delivery for importers”.

What it means:

This is encouraging for all importers who are increasingly frustrated with delays associated with the current industry issues.
Speedier deliveries and fewer delays for clients' goods at the borders will mean more money to invest back into the business and to our clients' bottom line.

DEPARTMENT OF FOREIGN AFFAIRS AND TRADE

What was announced:

$3.9 million over two years from 2023–24 for a review of policy options to reduce carbon leakage, including an Australian carbon border adjustment mechanism.

What it means:

Carbon reduction commitments decrease the demand for fossil fuels which may lead to a decrease in international fossil fuel prices, reducing gas emissions and the overall cost of business as well as driving innovation.

AUSTRALIAN TAX OFFICE

What was announced:

$588 million for increased GST compliance to ensure importers are paying the correct amount of GST on importation.
This is estimated to rake in $788 million in revenue next financial year alone, and $3.8 billion for the four financial years from July 1, 2023.

What it means:

Increasing compliance measures will help ensure all importers are paying the correct amount of GST on importation.
Please contact your Customs Broker to confirm your GST amounts are correct or if you have any questions regarding this.

WESTERN SYDNEY AIRPORT

What was announced:

Equity funding to WSA Co Limited for the construction of facilities to support border services and law enforcement operations at the Western Sydney International (Nancy-Bird Walton) Airport, with the financial implications not for publication (nfp) due to commercial sensitivities
$18.5 million in 2023–24 for border agencies to undertake design and planning work for operations.

What it means:

Another world-class freight facility in Australia will improve the import process across the country and lower costs for our clients minimising the current demand for space on airlines.

If you need help interpreting the budget and how to maximise its benefits for your business or identify ways to improve your profitability with your customs and logistics pathways, we can help - get in touch today.