Budget 2014

International trade and transport stakeholders are impacted by the following Budget measures:

• The Government will provide $480.5 million over four years ($711.9 million over six years, including $438.7 million in capital funding) to strengthen Australia’s border protection services.From 1 July 2015, the Australian Customs and Border Protection Service will be consolidated into the Department of Immigration and Border Protection to create a single agency.Enhancements to Australia’s border protection services will commence in 2014-15 within the existing Australian Customs and Border Protection Service including through:

– improved trade and passenger facilitation by implementing more efficient processes;

– better targeting and interception of illegal trade and travellers through enhanced Information      Communication Technology systems, intelligence and enforcement capability; and

– strengthened integrity and capability of the border workforce.

The cost of this measure will be met from within the existing resources of the Immigration and Border Protection portfolio and improved revenue collection of $208.2 million over four years ($346.6 million over six years) through the use of analytics and detailed data modelling, new processes for revenue collection and targeted campaigns to improve compliance.

• The Government will move to full cost recovery of its biosecurity services for imports and live animal exports. Fees for import clearance, seaports, post entry animal quarantine and live animal exports will be set to recover expected operating costs for 2014-15 in line with the provision of services on a user pays basis. For import clearance and seaports, revenue shortfalls in 2013-14 will also be recovered in 2014-15.This policy will be implemented in accordance with the Australian Government’s cost recovery policy. The additional revenue is not for publication due to ongoing consultation with the relevant industries.The new fees will come into effect on 1 July 2014.The Government will also redesign and simplify the biosecurity cost recovery framework to support a more efficient and effective biosecurity system, with implementation expected to occur from 1 July 2015.

• $1 1.6 billion to establish an lnfrastructure Growth Package that will fast-track investment in critical infrastructure across the country that includes:

 – $5.0 billion over five years towards the Asset Recycling Initiative which provides incentive payments to encourage the states and territories to sell assets and recycle the sale proceeds into new productivity-enhancing infrastructure.

– $3.7 billion for targeted infrastructure investments to deliver priority infrastructure projects and upgrades including:

– accelerating work on major projects such as Melbourne’s East West Link – Western Section, Adelaide’s North South Corridor, the Perth Freight Link, Toowoomba Second Range Crossing, as well as projects on the National Land Transport Network in the Northern Territory

• investment of $2.9 billion in Western Sydney to support the new Western Sydney airport; and to upgrade and improve the safety and reliability of the network.

The Australian Logistics Council Managing Director, Michael Kilgariff, said “The projects outlined in the 2014-2015 Budget will go a long way to increasing capacity on existing freight routes and supporting the construction of new infrastructure, and are welcomed by Australia’s freight logistics industry. Limited public funds need to be targeted at infrastructure projects which are in the national interest and have broad and lasting economic and social benefits. The projects being funded in this budget, including East West Link, West Connex, the Perth freight link, supporting works for an airport at Badgery’s Creek and freight rail projects, are productivity-enhancing initiatives and are supported by ALC.”