Navigating Australia's biosecurity fee changes: Managing increased charges on imports

Australia's Biosecurity model, which previously only levied a fee on certain items that posed a biosecurity threat to the country, will begin levying a charge on all qualifying (low-value) goods entering Australia effective July 2024. Additionally, Australia is increasing other import fees. Learn about these changes and how Zonos manages them.

Understanding the biosecurity funding change: 

The new funding model incorporates a cost recovery charge on all low-value air and sea imports (valued below 1000 AUD) effective July 1, 2024, estimated to raise AUD 27 million annually. The goal is to transfer some of the biosecurity costs to those who create risks or benefit from a secure environment.

Impact on businesses

If your business imports goods into Australia, especially through air and sea freight, these changes will affect you. Ecommerce businesses may experience impacts on pricing, shipping costs, and competitiveness in the Australian market. Postal and carrier companies might need to adjust service pricing, operations, and customer communication strategies accordingly.

Navigating the changes:

Understand the new charges: Familiarize yourself with the specifics of the cost recovery charge and its implications on shipping costs for low and high-value air and sea imports.

Adjust pricing strategies: Evaluate your business model and competitive landscape to determine whether pricing adjustments are necessary to accommodate the additional charges on shipments to Australia.

Communicate with customers: Transparency is vital when it comes to changes that affect customers. Ensure you communicate the changes and their implications to your Australian customer base.

Stay updated: The introduced cost recovery charge is just one aspect of the new biosecurity funding model. Be vigilant about further developments, such as potential future measures like a container levy, to be prepared for additional changes.

How Zonos manages Biosecurity Funding changes: 

Zonos proactively stays abreast of current legislation, tax, and duty rate changes. Zonos' systems and strategies adapt promptly to these alterations to ensure the most accurate and efficient services for retailers and their shoppers.

Zonos Landed Cost helps retailers seamlessly adjust to these changes by automatically pre-calculating and collecting the full landed cost for Australian shoppers, including the biosecurity cost recovery charge once it is in effect.

Australia's biosecurity funding changes, including the introduction of the cost recovery charge on air and sea imports below 1000 AUD and the increase of the existing charge on imports above 1000 AUD, will have implications for businesses involved in shipping goods to Australia. As retailers prepare to address these changes, understanding the specific charges, adjusting pricing strategies, and maintaining open communication with their customers will be essential. Moreover, keeping a watchful eye on further developments in the biosecurity funding model will help to stay ahead of this and future changes. However, Zonos handles everything for retailers and keeps them up to date automatically, so they need not worry. Zonos is dedicated to supporting retailers through these changes and ensuring a smooth transition. Stay tuned for more information is released on the July 1, 2024 changes.

For more information on how these changes might impact your business, feel free to contact Zonos.