18 December 2024
Who does this notice affect?
Stakeholders in the import and shipping industries — including importers, customs brokers, freight forwarders, vessel masters, biosecurity industry participants.
What has changed?
In 2023, the department commenced a review of diagnostic activities it carries out to assess and manage biosecurity risk associated with goods and conveyances (vessels and aircraft). This review identified areas where the department has not been charging or has only been partially charging for diagnostic activity.
To support improved cost recovery for diagnostics activity, the department:
- will commence charging for all diagnostics activity necessary to assess and manage biosecurity risk associated with goods and conveyances, and
- is proposing a revised fee structure and introduction of a fixed fee approach for most diagnostic activities.
Proposed fixed fees are not new charges, they represent an alternative charging structure for regulatory activities already undertaken and charged for under the cost recovery arrangement.
Unspecified diagnostic activities the department carries out to assess and manage biosecurity risk associated with goods and conveyances, will continue to be charged under current arrangements.
New activities are expected to be added over time as effort and cost is validated.
What is the proposed change?
A fixed fee approach for diagnostic activities means new charge points will be added in legislation for each diagnostic activity, with a description of what each activity covers and the rate at which the activity is charged per unit. For example, for each test, diagnostic examination, or activity.
In addition, the department will commence charging for all diagnostic activities undertaken to manage biosecurity risk in relation to goods and conveyances as of 1 July 2025.
This means for some importers costs may reduce and for others, where diagnostic activity has not been charged or only partially charged (such as fresh produce and vessel inspections), costs may increase. The impact will vary depending on the level on diagnostic work required in each circumstance.
Some diagnostics will continue to be charged under the current arrangements, due to the variability and complex nature of this work, for example some diagnostics activity carried out in relation to vessels will continue to be charged at the 15-minute rate.
How are fixed fees calculated?
Under the fixed fee approach, the proposed fees have been calculated by measuring the time taken to complete each activity and applying this in one-minute intervals, rather than the current 15‑minute intervals, plus the cost of any consumable material required.
Why are we proposing this change?
The proposed implementation of a fixed fee approach aims to provide greater transparency and price certainty for industry, while ensuring our fees are set to recover the actual cost to deliver the activity.
- Most of our diagnostic activities (tests, examinations) will have a legislated fee with the current rate published on our website and most prices will be known ahead of time.
- There will be a tiered structure for some tests, resulting in cheaper rates per test when larger numbers are tested in the one batch.
- The fee for some activities will reduce.
- Fees for activities provided will be itemised on an invoice.
The commencement of charging for all diagnostic activities will ensure the department is recovering the cost to deliver this regulatory activity and in turn, support sustainable funding of the biosecurity arrangement.
When will proposed changes happen?
Pending government approval of legislative amendments, the implementation of the fixed fee approach is proposed to commence on 1 July 2025.
Charging for all diagnostics activities undertaken to manage biosecurity risk in relation to goods and conveyances will commence 1 July 2025.
More information will be provided as this work progresses.
Further information
Enquiries can be directed to the BioCRIS@aff.gov.au.