Julian Hill (Bruce, Australian Labor Party, Assistant Minister for Citizenship, Customs and Multicultural Affairs) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Australian government is committed to protecting Australians from dangerous fake goods and protecting the rights of genuine businesses from fraud and intellectual property theft.

This change toughens existing regulatory measures that exist to deter and penalise those who bring counterfeit items into our country. In the 2024-25 financial year, over 700,000 individual counterfeit items were seized at the border. Had the items been genuine, their estimated value is over $35 million.

The Customs Legislation Amendment (False Trade Marks Infringement Notices) Bill 2026 will create a new strict liability offence for importing goods with false trademarks—that is, counterfeit goods. This will bring the importation of counterfeit goods within scope of the Infringement Notice Scheme under the Customs Act 1901 as administered by the Australian Border Force.

The bill also includes amendments to the Customs Regulation 2015 that enable Australian Border Force officers to issue infringement notices as an alternative to prosecution for the new offence.

As a strict liability offence, only the physical element of the offence must be proven. This aligns this reform with existing laws in the Copyright Act 1968, which already contains a strict liability offence for breaches of copyright.

This reform is necessary, as counterfeit products pose a significant consumer safety risk. Any goods can be counterfeited, and the potential for harm from consumer goods, such as phone chargers, beauty products, pharmaceuticals or vehicle parts, is severe. Those who import commercial quantities of high-risk consumer products will be targeted by the new laws.

Consumers buying counterfeit and pirated goods are not only receiving a flawed and potentially dangerous product but are also supporting the black market. The sale of counterfeit and pirated goods is often linked with the funding of criminal enterprises.

Making the importation of counterfeit goods an infringeable offence would allow the Australian government to directly impact the profits of counterfeiters. This would provide an additional deterrent alongside the current process of civil litigation.

Any infringement action would only occur after the importers of counterfeit goods have been identified through the existing compliance processes. When products are seized, the Australian Border Force officer has discretion to levy an infringement notice, taking into consideration factors such as first-time offences, genuine mistakes of fact, the quantity of goods and the type of goods.

Alongside the proposed changes, the Australian Border Force has already put in place complementary measures to request evidence of legitimacy if individuals want to claim their seized goods back. There will be no new regulatory impacts on lawful importers or border industries as part of the bill.

This reform will support Australian businesses by protecting their legitimate intellectual property rights. This reform will support a more prosperous and reputable retail sector and retain consumer confidence in Australian retailers and products.

This is a change that Australian trademark owners have been calling for. They've called for more deterrents for counterfeiters importing fraudulent goods, to reduce the financial burden that small and medium businesses must bear to bring expensive civil litigation. The Australian government is listening to the needs of legitimate businesses and ensuring their interests are protected, not undercut by importers who bring fake products that fail Australian safety standards.

This change will support the government's priorities of growing the Australian economy and supporting Australian businesses by implementing a means to further combat the economic, community safety and criminal risks of the trade in counterfeit goods.

I commend the bill to the House.

Debate adjourned.