Self-Assessed Clearance cost recovery

Key information for the SAC cost recovery charge

The SAC cost recovery charge for biosecurity clearance of declared low value goods is applied to all low value import items (valued at AUD $1,000 or less) being brought into Australian territory by air or sea. These items are subject to self-assessed declaration and cargo reporting requirements under the Customs Act 1901 – often referred to as SACs.

Administration

The charge is administered by the department and imposed as a government cost recovery tax – it is not a fee for service. GST does not apply. The charge is subject to yearly review, including for indexation purposes.

Calculating the SAC Charge

The department, using ICS data, records the number of SACs reported by a party and brought into Australian territory in each quarterly period.

The total liability is calculated by multiplying the number of SACs by 36 cents.

The charge applies to short form, long form, and cargo report SACs.

The SAC Cost Recovery Charge: Charging fact sheet includes additional information on the determination of liable SACs.

Who is required to pay the SAC charge?

Any reporting party lodging 278 or more SAC declarations into the ICS in a given quarterly period is liable for the charge.

Exemptions

A reporting party that lodges fewer than 278 SAC declarations in a given quarterly period (accumulated charges totalling less than $100) will be exempt from paying the charge for that period.

Self-reporting model

The SAC charge is administered under a self-reporting model. It is the responsibility of the reporting party to keep records of all SAC declarations associated with goods that have arrived in Australian territory.

Paying the SAC charge

Reporting parties are required to remit a single SAC charge amount, quarterly in arrears, using allowable payment methods.

Payment arrangements are established in the Biosecurity Charges Imposition (Customs) Regulation 2016 and the Biosecurity Charges Imposition (General) Regulation 2016.

For further information, please refer to the SAC cost recovery charge fact sheets.

Non-payment of the SAC charge

The department will conduct ongoing audit, compliance and verification activities relating to the charge.

This charge is subject to penalties and sanctions in line with existing cost recovery charge provisions in the Biosecurity Act 2015 and related regulations, and the department’s charging guidelines.

Departmental reporting of the SAC charge

Further information about SAC cost recovery is reported via the SAC Cost Recovery Implementation Statement. From the 2025-26 financial year onwards, the SAC cost recovery charge will be reported through the annual biosecurity cost recovery implementation statement (BCRIS).

What does the charge cover?

The SAC charge will recover the cost of risk profiling, surveillance, monitoring compliance and administration of other biosecurity efforts.

Context

Biosecurity is a shared responsibility, and so is contributing to its cost. Funding for biosecurity is based on shared responsibility between taxpayers, those who create risk and those who receive significant benefits from the Australian Government’s efforts at the border.

As part of the government’s election commitment to sustainably fund the Commonwealth biosecurity system, announced in the 2023-24 Federal Budget, it was agreed that current industry biosecurity cost recovery arrangements would be extended to low value goods imported into Australian territory. These costs were historically funded by taxpayers. Revenue raised from this new charge will flow directly to biosecurity.

The volume and diversity of low value goods coming into Australia, via air or sea, and the underlying countries of origin, have been steadily increasing. Australia is facing growing biosecurity risks on this pathway. Our biosecurity efforts, in partnership with industry, need to support efficient clearance of low-risk items while ensuring adequate protections against introduction of higher risk items.

This decision was taken in the context of decisions to increase the biosecurity cost recovery fees and charges already in place from 1 July 2023 (estimated to increase revenue collected by $36 million in 2023-24 to over $360 million) and to increase the budget appropriation to the department for biosecurity ($845 million over the next 4 years and then $255 million per annum ongoing). Further information about the review of regulatory charging for biosecurity activities can be found here: Review of regulatory charging for biosecurity and imported food activities.

Further information

Impacted parties can contact the department by emailing SACCostRecovery@aff.gov.au.