This bill became law on Nov 23rd, 2022.
Budget, tax & economy
Imports from India can get the lower tariff rates under this law only if they meet the customs rules that decide whether they genuinely count as Indian goods.
Signing the India-Australia Economic Cooperation and Trade AgreementThe trade deal between Australia and India that this bill is designed to put into Australian law. created the need to set new tariff rates and decide which imports genuinely count as Indian goods. This bill implements that deal by making most qualifying Indian imports duty free, phasing down some tariffs, and keeping excise-equivalent duty on alcohol, tobacco and petroleum.
Australia and India signed the India-Australia Economic Cooperation and Trade AgreementThe trade deal between Australia and India that this bill is designed to put into Australian law. on 2 April 2022, after which governments and business groups promoted it as a way to expand trade and investment, but Australia still needed to change its tariff law and set rules to decide which imports genuinely counted as Indian goods. This bill was introduced in October 2022 to put those tariff cuts and origin rules into Australian law, then passed Parliament in November and received Royal AssentThe final approval step that turns the bill into an Act of Parliament. the next day so the agreementThe trade deal between Australia and India that this bill is designed to put into Australian law.’s customs preferences could operate domestically.
The main criticism was that the bill implements a trade deal without strong enough safeguards, with concerns it could reward poor labour, environmental and human rights practices or intensify pressure on local jobs and small business. Those objections were limited rather than broad, raised mainly by the Greens and One Nation while no major party represented in the debate opposed the bill.
Clare O'Neil MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 23 Nov 2022
Final passage
Passed without a counted vote
1 recorded amendment or procedural vote was found, but no counted vote on the bill itself was recorded.
Passage speed
27 days
From introduction to the latest recorded parliamentary step
Meaning
Imports from India can get the lower tariff rates under this law only if they meet the customs rules that decide whether they genuinely count as Indian goods.
Most qualifying goods imported from India become duty free if they are not in the new list of products that keep a specific tariff rate.
Some qualifying Indian imports keep temporary tariffs that step down over time, with those staged rates reducing to free by the fifth calendar year after the agreementThe trade deal between Australia and India that this bill is designed to put into Australian law. starts for Australia.
Alcohol, tobacco, fuel and petroleum imported from India still pay customs dutyThe tax charged on imported goods when they enter Australia. at the same level as excise charged on equivalent goods made in Australia.
Indian goods that qualify for existing concessional tariff items in Schedule 4An existing part of the tariff law that already gives lower duty rates to certain goods, which Indian goods can still use if they qualify. can use those lower rates, and if no India-specific rate is listed the duty is free.
For the purposes of this Act, goods are Indian originating goods if, and only if, they are Indian originating goods under Division 1JA of Part VIII of the Customs Act 1901.Customs Tariff Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) as-passed bill text
However, where Indian originating goods are not classified to a tariff subheading listed in new Schedule 10A, new subparagraph 16(1)(pa)(ii) provides for such goods to be subject to a customs duty rate of ‘Free’, in accordance with Article 2.3 of Chapter 2 of the Agreement and Section 2A of Annex 2A to Chapter 2 of the Agreement.Customs Tariff Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) explanatory memorandum
specify the phasing rates of customs duty for certain Indian originating goods that will incrementally reduce to ‘Free’ by the 5th calendar year after the Agreement enters into force for Australia; andCustoms Tariff Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) explanatory memorandum
Table items 1 to 144 in new Schedule 10A impose customs duty on certain alcohol, tobacco, fuel and petroleum products that are Indian originating goods at a rate that is equivalent to the excise duty imposed under the Excise Tariff Act on the same goods when domestically produced.Customs Tariff Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) explanatory memorandum
Item 12 inserts new paragraph 18(2)(pa) into the Customs Tariff Act to set out how customs duty is calculated for goods that are Indian originating goods and that are subject to a concessional item in Schedule 4 of that Act. This new paragraph provides that, if the goods are Indian originating goods and a rate that applies in relation to India is specified in the third column of an item in Schedule 4, the amount of duty is calculated by reference to that customs duty rate. If there is no such rate specified, the rate of customs duty is ‘Free’.Customs Tariff Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) explanatory memorandum
Context
Australia and India signed the India-Australia Economic Cooperation and Trade AgreementThe trade deal between Australia and India that this bill is designed to put into Australian law. on 2 April 2022, after which governments and business groups promoted it as a way to expand trade and investment, but Australia still needed to change its tariff law and set rules to decide which imports genuinely counted as Indian goods. This bill was introduced in October 2022 to put those tariff cuts and origin rules into Australian law, then passed Parliament in November and received Royal AssentThe final approval step that turns the bill into an Act of Parliament. the next day so the agreementThe trade deal between Australia and India that this bill is designed to put into Australian law.’s customs preferences could operate domestically.
Australia and India sign the trade agreement
The two countries signed the India-Australia Economic Cooperation and Trade AgreementThe trade deal between Australia and India that this bill is designed to put into Australian law., creating the need for Australia to translate its tariff commitments into domestic law.
Australian Parliament House ↗Business groups and ministers promote the deal’s trade gains
The Australian Financial Review reported that the agreementThe trade deal between Australia and India that this bill is designed to put into Australian law. was expected to almost double trade and drive a fresh business push between the two countries.
Australian Financial Review ↗Government introduces the bill to implement the agreementThe trade deal between Australia and India that this bill is designed to put into Australian law.
The bill was introduced to set India-specific tariff rates in Australian law and link those rates to new rules of originThe tests used to decide whether a product really counts as Indian for tariff purposes under this agreement. for Indian goods.
Parliamentary timeline ↗House passes the bill
The House agreed to the bill at second and third reading, moving the tariff changes a step closer to taking legal effect.
Parliamentary timeline ↗Parliament passes the bill
Both houses passed the bill in the same form, completing its parliamentary passage and clearing it for assent.
Parliamentary timeline ↗Royal AssentThe final approval step that turns the bill into an Act of Parliament. makes the tariff changes law
Royal AssentThe final approval step that turns the bill into an Act of Parliament. turned the bill into an Act so Australia could apply the agreementThe trade deal between Australia and India that this bill is designed to put into Australian law.’s preferential customs rates through its own statute book.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final approval step that turns the bill into an Act of Parliament., turning the bill into an Act.
Key criticism
The main criticism was that the bill implements a trade deal without strong enough safeguards, with concerns it could reward poor labour, environmental and human rights practices or intensify pressure on local jobs and small business. Those objections were limited rather than broad, raised mainly by the Greens and One Nation while no major party represented in the debate opposed the bill.
Criticism was real but narrow, with most parliamentary speakers backing the bill.
Missing human rights and environmental safeguards
Critics said the bill gives effect to a trade agreement without enforceable labour, environmental and human rights protections, and argued Australia should attach stronger conditions before endorsing trade benefits.
Risk of a race to the bottom for workers and small business
Opponents argued the deal would favour large corporations that can shift capital to lower-wage, lower-tax settings, leaving Australian workers and small businesses squeezed rather than helped.
Climate concerns were only lightly addressed
A supporter of the bill still warned that the wider agreement paid too little attention to the climate effects of expanded coal and gas trade, and said stronger climate screening was needed.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.
Senate
Moved by Dorinda Cox (Greens). Defeated 14 to 31. Support came from Greens and Jacqui Lambie Network. Opposition came from Labor, Liberal Party, Nationals, and One Nation.
The amendment would have added a political statement to the second-reading motion, but it was defeated, so the bills proceeded without that Senate noteA proposed change to the bill's debate motion, used here to attach a Senate note about human rights concerns..
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
Parliamentary debate
Start here — lead voices
O'Neil supports the bill and says it will implement the India-Australia Economic Cooperation and Trade AgreementThe trade deal between Australia and India that this bill is designed to put into Australian law. by creating preferential customs dutyThe tax charged on imported goods when they enter Australia. rates and extending concessional treatment to Indian-origin goods.
Read in Hansard ↗Roberts opposes the bill, arguing that this free trade deal will not help Australians and will instead let large corporations shift capital, chase lower wages and taxes, and squeeze small business.
Read in Hansard ↗Birmingham supports the bill and says it will unlock major tariff cuts and new market access for Australian exporters to India.
Read in Hansard ↗Ryan supports the bill as a step toward stronger trade ties with India and cheaper Australian exports, but says it needs a stronger climate filter and more effort to accelerate India's clean energy transition.
Read in Hansard ↗All speeches by bloc
5 speakers · 6 contributions · 5 support
“This agreement eliminates tariffs on over 90 per cent of Australian goods exports by value to India. It provides new opportunities for Australian services, companies and professionals who seek to access the Indian market. It has already shown the way towards a more ambitious agreement between Australia and India in the form of the comprehensive economic cooperation agreement, which we hope will continue to advance towards completion.”Read the full speech in Hansard ↗
“I commend this bill to the Chamber.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Clare O'Neil on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
O'Neil supports the bill and says it will implement the India-Australia Economic Cooperation and Trade AgreementThe trade deal between Australia and India that this bill is designed to put into Australian law. by creating preferential customs dutyThe tax charged on imported goods when they enter Australia. rates and extending concessional treatment to Indian-origin goods.
“I commend this bill to the House.”Read this contribution in Hansard ↗
Second reading speech
O'Neil supports the bill and says it will deepen Australia's trade relationship with India by cutting tariffs, opening a large market for Australian exporters, and giving more certainty to services suppliers and professionals. She presents it as a commercially significant agreement that will diversify trade and benefit the country.
“India is, of course, a very, very important partner for Australia as we look ahead to the future. The India-Australia Economic Co-operation and Trade Agreement will be a very important driver of deepening that relationship. It will secure Australia's foothold in the world's fastest-growing major economy and, again, represents significant new trade diversification opportunities.”Read this contribution in Hansard ↗
“Firstly, I'm pleased to hear that the opposition will be voting for the bill. That's a good thing.”Read the full speech in Hansard ↗
“The Australia-India Economic Cooperation and Trade Agreement secures Australia's access to the fastest growing Indian market, a market of 1.4 billion people, and provides a solid basis to negotiate a further comprehensive economic cooperation agreement. The agreement will deliver many benefits to Australian producers and service suppliers. These include eliminating tariffs on 90 per cent of Australia's current goods and exports to India by value and locking in access to many sectors in Australia's third-largest services export market. A trade agreement with India will give Australian exporters a competitive advantage in the Indian market and opportunities for very important trade diversification.”Read the full speech in Hansard ↗
5 speakers · 5 support
“Under the Australia-India Economic Cooperation and Trade Agreement we, again, see significant benefits. There are important steps, in relation to the treatment of income, through the definition of 'royalties' under the double taxation avoidance agreement and how the amendments to that will bring the tax treatment of Indian residents into line with Australia's approach, but this is also a boundless opportunity in terms of India.”Read the full speech in Hansard ↗
“The opportunities and potential of this agreement are enormous. It sits in the background of what we've been able to achieve with India through the Quad, and it now backs that up with a strengthening of the economic relationship. I can't wait for the day that this agreement goes through the parliament and enters into force because it will tick the box on something that Australia has been trying to achieve with India for over a decade.”Read the full speech in Hansard ↗
“Just to wind up, this is a really good day for parliament with these bills being here. It's a really good acknowledgement of the record of the previous comment and an acknowledgement of the previous trade ministers that we've had over nine years that got goods and services exported from this country up from 20-odd per cent covered by a free trade agreement to 80 per cent, of which these two deals were significant. That's more customers—billions more customers for our exporters. They're great deals from the great record that the previous government had in free trade agreements.”Read the full speech in Hansard ↗
“We hope these bills go through very quickly and successfully. We'll be supporting them. I commend this bill to the house.”Read the full speech in Hansard ↗
“That is why it is my pleasure to rise and speak on these bills. I'm very happy to say these are bills that are aimed at liberalising trade flows between Australia and the UK, on the one hand, and Australia and India, on the other, both very important markets to my home state of WA.”Read the full speech in Hansard ↗
1 speaker · 1 mixed
“The Greens have circulated a second reading amendment which relates to the three bills implementing the Australia-India Economic Cooperation and Trade Agreement. This amendment is co-sponsored by my colleague Senator Steele-John and seeks to highlight the human rights abuses in India and the recommendations made by the United Nations Human Rights Council's Universal Periodic Review.”Read the full speech in Hansard ↗
1 speaker · 1 oppose
“This so-called free trade agreement, like the previous agreements, will not make our lives better. It will not serve Australians. It will make it easier for large corporations to move capital around the world, chasing the lowest wage, the most flexible labour arrangements, including labour hire contracts that One Nation is still waiting for Labor to do something about. After we dragged their attention to it for the last three years, they still won't touch it. International capital will move money around, chasing the lowest tax rates and the highest profits.”Read the full speech in Hansard ↗
1 speaker · 1 support
“Our relationship with India needs to be built on trust, common interest and mutual benefit. This legislation is a move in the right direction towards a stronger and more cohesive relationship with one of our most important trade partners. But we need to look actively for ways to accelerate India's development of a clean energy infrastructure to meet its growing energy demands in the short term and to prepare in the long term for a transition that does the right thing by both countries and for our climate.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final approval step that turns the bill into an Act of Parliament., turning the bill into an Act.
