Alison Penfold (Lyne, National Party) Share this | Hansard source

I rise to speak on the Customs Legislation Amendment (False Trade Marks Infringement Notices) Bill 2026. At its core, this bill is about protecting Australians from dangerous counterfeit goods and defending the rights of genuine businesses from fraud and intellectual property theft. That is a goal we support, because counterfeit goods are not a harmless imitation. They are a direct threat to consumer safety, business integrity and the rule of law. As outlined in the minister's second reading speech, we know the scale of the problem. In just one financial year, over 700,000 counterfeit items with an estimated value of more than $35 million, if those goods had been genuine, were seized at the border. That is not a small issue. That is a systemic problem, one that demands a strong and effective response.

Counterfeit goods can include everything from phone chargers to pharmaceuticals, from beauty products to vehicle parts. These are not trivial items. These are products that Australians use every day—products that, if counterfeit, can cause real harm. A faulty charger can start a fire, a counterfeit pharmaceutical can fail to treat illness, and a fake vehicle part can put lives at risk. When people talk about counterfeit items they often think of fake handbags, but we're talking about items that are far more serious and have significant consequences. And when we talk about intellectual property, we're not just talking about legal rights; we're talking about consumer safety.

This bill creates a new strict liability offence for importing goods with false trademarks—that is, counterfeit goods. This brings those offences within the Infringement Notice Scheme under the Customs Act, allowing Australian Border Force to issue penalties without the need for lengthy court proceedings. This is intended to strengthen enforcement, but the use of strict liability offence where fault is not required to be proved is a very serious legal tool. This requires further examination and consideration, and I'm pleased that there has been agreement for this bill to be considered by a Senate committee.

While I understand the problem that this legislation is seeking to address, we must also be honest about the broader environment in which Australian businesses are operating. Right now, businesses are under immense pressure, and that pressure is undermining their ability to compete—not just against counterfeits, but in the economy more broadly. According to the Australian Securities and Investments Commission, more than 11,000 companies entered external administration in 2023-24, and insolvencies are now running at over 13,000 annually—the highest level in more than a decade. Entire sectors are struggling. Construction firms are collapsing under rising costs, hospitality businesses are closing their doors, retailers are facing declining demand and there are far too many empty shops on our high streets. At the same time, businesses are facing escalating costs. Energy prices remain high, insurance premiums are rising and borrowing costs have surged. The Reserve Bank of Australia has made it clear that inflation has remained persistent, forcing interest rates to stay higher for longer, and businesses are carrying that burden.

This matters in the context of this bill, because when legitimate businesses are weakened, counterfeiters gain ground; when margins are thin, unfair competition hits harder; when confidence is low, investment in innovation declines; and when businesses fail, the very intellectual property we're seeking to protect disappears with them. While the government says this bill supports a prosperous and reputable retail sector, the reality is that its broader economic policies are doing the opposite. We've seen rising insolvencies, weak business investment, declining confidence and increasing cost pressures. You cannot separate those outcomes from policy choices.

This government has failed to get inflation under control early, presided over spending that has added to demand pressures, introduced workplace changes that increased complexity for employers and delivered energy policies that are driving up costs rather than bringing them down. You cannot claim to protect Australian business from counterfeit goods while making it harder for those businesses to survive. You cannot claim to support intellectual property while presiding over conditions that are forcing businesses to close, and you cannot claim to strengthen the economy while confidence continues to fall. Protecting intellectual property is not just about stopping counterfeit goods at the border; it's about ensuring that Australian businesses are strong enough to innovate, to invest and to grow.

In closing, I'm pleased, as I said, that the bill will go to a committee for further consideration and, hopefully, consultation with the business sector. The intent of the bill is certainly something that I support, because those who create value, who build brands, who invest in quality and who employ Australians deserve to have their work protected. They deserve protection from fraud; they deserve protection from intellectual theft, and they certainly deserve a level playing field. But they also deserve an economic environment that allows them to succeed. Right now, too many businesses are not just fighting counterfeiters; they're fighting to stay afloat.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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