House of Representatives

Second Reading Speech

Ms O'Neil (Minister for Home Affairs and Minister for Cyber Security)

I move:

That this bill be now read a second time.

International trade and investment is critical to the Australian economy, creating jobs and prosperity, and opening up opportunities for Australian businesses to expand and diversify globally.

This bill, the Customs Amendment (Strengthening and Modernising Licensing and Other Measures) Bill 2024, introduced together with the Customs Licensing Charges Amendment Bill 2024, forms the next steps in the Albanese government's Simplified Trade System agenda, which makes trade faster, cheaper and easier.

These bills represent some sensible and overdue steps to modernise Australia's customs processes.

These bills will deliver reforms to simplify and support the digitalisation of border processes for both business and government, and improve the effectiveness of the Australian Border Force in protecting Australia's borders.

Many of these reforms will save business time and money, reducing regulatory burdens of complying with certain customs processes, and industry has been supportive of the proposed reforms.

The amendments in this bill will also strengthen the customs licensing regime against threats of criminal infiltration and bolster the efforts of the Australian Border Force to ensure integrity in our supply chains.

It will align requirements across licence types, and close compliance gaps to enhance the integrity and security of Australia's borders.

There are over 450 licensed depots, 500 licensed warehouses, 400 airports, seaports and cargo terminals, 2,100 licensed brokers and numerous freight forwarders and cargo reporters currently being regulated.

Current legislative provisions for the management of these customs licences are complex, outdated and in some cases still paper based today. This puts additional burden and costs on the government to administer and for industry to comply.

The amendments to the Customs Act will, in particular:

a.

modernise customs licence administration by allowing electronic communication methods;

b.

streamline administration across depot, warehouse and broker licences;

c.

strengthen the entry requirements to be eligible to hold a licence;

d.

align and enhance powers to give directions in respect of depots and warehouses; and

e.

strengthen the licensing regime by bolstering fit and proper checks of licensed entities.

The bill will strengthen the eligibility to hold and maintain a customs licence that ensures the integrity of goods under customs control.

As well as reducing the regulatory burden on businesses, the amendments in this bill will support an equal playing field for businesses. This bill will help ensure that businesses that comply with their obligations are not undercut by entities who seek to circumvent controls government controls.

The bill will also make consequential amendments to the AusCheck Act 2007 to, among other things, permit the disclosure of information to an officer of customs for a purpose under the Customs Act. This will allow disclosure of the information under the AusCheck Act with respect to the cancellation, refusal or suspension of a Maritime Security Identification Card or an Aviation Security Identification Card held by a person, bolstering the fit and proper assessment.

The bill is informed by the Review of customs licensing regimes final report which was formally submitted to the Comptroller-General of Customs on 31 March 2017.

The report noted that the review's recommendations are intended, among other things, to strengthen and streamline the current licensing regimes, with the primary purpose of implementing savings and efficiencies for the department and industry.

The report also assessed that the focus on the integrity of the licensing regime would only grow in importance in the future and that strengthening the integrity of the system would better protect the community.

The Australian Border Force conducted further consultation with key industry stakeholders in 2023 and 2024 to introduce the proposed amendments outlined in the bills.

The Australian Border Force will continue to consult and support businesses with their transition to the changes, including through existing industry forums such as the National Committee for Trade Facilitation and its working groups.

The bill being introduced today will enhance the integrity of Australia's borders, which is vital for a prosperous, secure and safe Australia.

I commend this bill to the chamber.

Debate adjourned.