House debates

Wednesday, 28 February 2024

Bills

Agriculture (Biosecurity Protection) Levies Bill 2024; Second Reading

9:02 am

Photo of Ms Catherine KingMs Catherine King (Ballarat, Australian Labor Party, Minister for Infrastructure, Transport, Regional Development and Local Government) Share this | | Hansard source

I move:

That this bill be now read a second time.

A strong and sustainable funded biosecurity system is essential to protecting Australia from devastating and costly pest and disease outbreaks and to safeguard our $99.9 billion agricultural, fisheries and forestry industries well into the future. All Australians benefit from a strong biosecurity system. It protects our unique environment, our economy and our way of life from a myriad of increasing and complex biosecurity threats.

A robust biosecurity system is fundamental to protecting our international trade and enables our regional and remote communities to prosper, providing security for 1.6 million jobs across our agricultural supply chain.

But a world-class biosecurity system does not just naturally occur. It needs to be sustained and supported by predictable, long-term funding that is equitable, transparent and secure.

The government has done just that. We've delivered on our election commitment to sustainable funding for Australia's biosecurity system.

The May budget last year included new and permanent funding of more than $1 billion for four years and $267 million per year ongoing from 2027 to 2028.

That's a first for Australia. We've never had sustainable, predictable and permanent biosecurity funding. That is despite it being recommended in numerous reviews and reports, and continuously highlighted as a priority for industry.

Without this new package, funding for the Commonwealth biosecurity system would have declined over the forward estimates by 15.9 per cent, almost $100 million per year, to less than $500 million in 2026-27.

The previous government's biosecurity funding legacy was to lock in funding cuts of almost $100 million a year.

Not only has this government delivered greatly increased and permanent funding for the Commonwealth biosecurity system; we have made changes to the way biosecurity is funded to ensure it is more sustainable and more equitable.

More taxpayer funding than ever before is being committed to biosecurity. Additionally, risk creators and those who benefit from strong biosecurity protection are also making additional contributions.

Primary producers, whether growing for the domestic market or exporting into premium overseas markets, benefit considerably from our favourable biosecurity status.

This is reflected in the returns being secured from our export markets and the costs of recovering markets where outbreaks occur. In 2022-23, ABARES forecast agricultural, fisheries and forestry exports to be valued at around $82.7 billion.

The Biosecurity Protection Levy will now support a direct contribution from primary producers to Commonwealth biosecurity funding.

Funding from the Biosecurity Protection Levy will support Australia's biosecurity system and our efforts to manage the risk of the entry of pests and diseases that threaten our economy and environment.

This package of three bills will introduce a new legislative framework to provide for the imposition, collection and administration of the new Biosecurity Protection Levy. The package includes two imposition bills and one collection bill.

The Agriculture (Biosecurity Protection) Levies Bill 2024 provides for the imposition of biosecurity protection levies that are duties of excise in relation to agriculture, fisheries and forestry products and goods produced in Australia.

The Agriculture (Biosecurity Protection) Charges Bill 2024 provides for the imposition of biosecurity protection charges that are duties of customs in relation to agriculture, fisheries and forestry products that are exported from Australia.

The Agriculture (Biosecurity Protection) Levies and Charges Collection Bill 2024 provides for the collection and administration of levies and charges imposed by the levies bill and charges bill.

The two imposition bills provide for the making of regulations that would prescribe the rate of biosecurity protection levies and charges.

The legislation will provide for the imposition of biosecurity protection levies and charges separately to the primary industries levies and charges framework.

We know that many producers already invest in biosecurity preparedness and response capabilities, be it on farm as well as through research and development or membership fees for Animal Health Australia and Plant Health Australia or industry groups. These investments are critical to biosecurity. But they do not fund our biosecurity efforts at the border, at airports, at seaports and at mail centres, and nor do they fund the technical, scientific and surveillance work that is funded through the Australian government biosecurity budget.

This means that funding from the Biosecurity Protection Levy will not replace or duplicate the efforts of producers; rather, it will support important Commonwealth biosecurity activity to manage the risk of pests and diseases entering Australia in the first place. Currently producers, whilst a significant beneficiary, do not contribute directly to Commonwealth biosecurity efforts to manage the risk of pests and diseases entering Australia.

However, it is not just down to producers to contribute more. Under the changes we have introduced, risk creators, like importers and travellers, are also contributing more to Commonwealth biosecurity funding.

From 1 July 2024, a new cost-recovery charge on low-value goods imported into Australia by air or sea will be introduced and is expected to recover around $27 million annually. Up to now, taxpayers have been paying this cost.

This is in addition to an increase in fees and charges for importers that was implemented from 1 July last year. These increases were as a result of the first comprehensive review of biosecurity fees and charges since 2015 and are expected to add around $36 million to the biosecurity bottom line.

As these and other changes to cost recovery roll out, we expect to raise around an extra $100 million per year from importers from 2024-25.

Not only are importers paying more but, from 1 July this year, international travellers will also be contributing more to government funding to support biosecurity costs associated with international travellers. The passenger movement charge will increase from $60 to $70 per international traveller.

Biosecurity threats are increasing due to a rise in the volume and complexity of trade, the effects of climate change and the ever-increasing worldwide spread of pests and diseases. Our biosecurity system needs to keep up with these changes and we need to be able to plan for the future.

The government's structural reforms to biosecurity funding will bolster the Australian biosecurity system and ensure it continues to be recognised as among the best in the world. This package of bills will establish a new legislative framework that contributes to us maintaining our reputation as a supplier of safe, high-quality produce, and protecting our farmers, economy, and environment from biosecurity risks, now and into the future.

I commend the bill to the House.

Debate adjourned.