New levy to increase input costs for Australian manufacturers

19-Nov-2018

Australian manufacturers and industry groups have warned that a new “biosecurity levy” would increase costs by 3000-5000 per cent on the key inputs for cement production, aluminium and steel.

The levy, included in the May budget, is estimated to raise AUD108m (US$78.45m) a year, according to The Australian. Due to start on 1 July 2019, it will see manufacturers pay a AUD1/t levy on non-containerised cargo, instead of paying a fee-for-service for biosecurity inspections.

“Currently manufacturers pay biosecurity inspection fees of AUD1200 to AUD1300 per vessel. This tax would see manufacturers paying AUD40,000 to AUD60,000 for the same cargo,” said Ben Eade, chief executive, Manufacturing Australia.

Margie Thomson, chief executive of the Cement Industry Federation, has stated that it should not be a tonnage levy. “It shouldn’t be a tonnage levy, when the biosecurity risk is not associated with the product,” said Ms Thomson. “Cementitious imports hold an extremely low biosecurity risk status.”

Source: CEMNET