Freight Rail

Logistics sector questions new import tax

Container ships at East Swanson Dock, Patrick terminal. Photo: David Sexton

The Australasian Railway Association has joined forces with key logistics and shipping bodies to question the Turnbull Government’s proposed Biosecurity Import Levy, which was included in the federal budget last week.

The ARA, the Australian Logistics Council, Ports Australia and Shipping Australia on May 17 asked for clarification into the new levy, particularly wanting to know how the revenue was to be spent.

Expected to earn $360 million in revenue, the proposed levy will charge $10.02 per incoming container and $1 per tonne of non-containerised cargo.

With just $76.6 million forecast to be spent over the same period on Australia’s biosecurity system, the lobby groups have asked the Australian Government to justify the new cost.

“The proposed levy is a significant issue for ARA members and everyday Australians,” ARA boss Danny Broad said.

“The levy will ripple right through the supply chain and hit the end consumer. Every product that comes through our ports, onto our rail networks and delivered to the consumers will feel the effects of this levy.”

Broad said the logistics industry was keen to work with the government to improve biosecurity, but said “urgent clarification and rationale is needed” to detail how and why the new levy is necessary.

“[The levy] is being imposed with almost no consultation with those it will affect the most,” Broad concluded.