This bill became law on Nov 23rd, 2022.
Budget, tax & economy
Most goods that qualify as British under the trade deal can enter Australia duty-free, unless they are in a list that keeps tariffs for a phase-downA step-by-step reduction in duty over several years instead of an immediate drop to zero. period or special products.
Signing the Australia-United Kingdom Free Trade AgreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. left Australia’s customs law needing UK-specific tariff rates, phase-downs and safeguardA temporary fallback to the normal tariff for some steel goods if the UK keeps restrictions on similar Australian steel exports. rules. This bill implements the deal by cutting most tariffs on qualifying UK goods, phasing some down, keeping excise-equivalent duties on alcohol, tobacco and petroleum, and allowing a steel safeguardA temporary fallback to the normal tariff for some steel goods if the UK keeps restrictions on similar Australian steel exports..
Australia already had a customs tariff system and had signed a new free trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. with the United Kingdom on 17 December 2021, but that deal could not change import duties on its own and needed UK-specific rates, phase-downA step-by-step reduction in duty over several years instead of an immediate drop to zero. schedules and a steel safeguardA temporary fallback to the normal tariff for some steel goods if the UK keeps restrictions on similar Australian steel exports. written into Australian law. The agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. was tabled in Parliament in February 2022, Parliament passed this bill in November 2022 so Australia could bring the deal into force, and the agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. then started on 31 May 2023.
The main criticism recorded was not about the tariff changes themselves but about the government taking too long to bring the implementation bill forward, which critics said delayed the benefits of the trade deal. That complaint came from a supporting Coalition senator, while otherwise no party represented in the debate opposed the bill or mounted a broader case against it.
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
Most goods that qualify as British under the trade deal can enter Australia duty-free, unless they are in a list that keeps tariffs for a phase-downA step-by-step reduction in duty over several years instead of an immediate drop to zero. period or special products.
Some British imports keep shrinking tariffs for several years instead of going straight to zero, and all of those staged tariffs end by the fifth calendar year after the deal starts for Australia.
British alcohol, tobacco, fuel and petroleum products still pay import duty at the same level as Australian-made versions, so the trade deal does not give them a lower tax rate.
Australia can temporarily switch some British steel imports back to the normal tariffThe normal import tariff that applies when a good does not qualify for a special lower rate. if the United Kingdom keeps safeguardA temporary fallback to the normal tariff for some steel goods if the UK keeps restrictions on similar Australian steel exports. restrictions on similar Australian steel exports.
Several existing concessional tariff items are extended so eligible British goodsGoods that meet the agreement's origin rules, so they can get the lower or zero tariff rates in this bill. can keep using those special reduced rates where the concession applies.
However, where UK originating goods are not classified to a tariff subheading listed in new Schedule 15, subparagraph 16(1)(u)(ii) provides for such goods to be subject to a customs duty rate of ‘Free,’ in accordance with Article 2.5 of Chapter 2 of the Agreement and Part 2A‑2 of Section 2A of Annex 2A to the Agreement.Customs Tariff Amendment (Australia-United Kingdom Free Trade Agreement Implementation) explanatory memorandum
Table items 1 to 5 and 150 to 238 in new Schedule 15 reduce the customs duty on UK originating goods in accordance with the staging categories specified in the Schedule for Australia in Part 2A‑2 of Section 2 of Annex 2A to the Agreement. On 1 January of the fifth calendar year after the Agreement enters into force, customs duties on all UK originating goods in these table items will be eliminated.Customs Tariff Amendment (Australia-United Kingdom Free Trade Agreement Implementation) explanatory memorandum
Table items 6 to 149 in new Schedule 15 impose customs duty on certain alcohol, tobacco, fuel and petroleum products that are UK 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 (Australia-United Kingdom Free Trade Agreement Implementation) explanatory memorandum
The purpose of new section 16A is to allow Australia to suspend preferential tariff treatment for the same Chapter 72 and 73 goods subject to the UK global safeguard. This purpose is achieved by allowing the Minister for Home Affairs to make a legislative instrument positing that the rate of duty for steel goods subject to a global safeguard measure is the general rate of duty for those goods for a specified period of time.Customs Tariff Amendment (Australia-United Kingdom Free Trade Agreement Implementation) explanatory memorandum
Item 15 inserts new paragraph 18(2)(u) into the Customs Tariff Act to set out how customs duty is calculated for goods that are UK 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 UK originating goods and ‘UK’ 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 (Australia-United Kingdom Free Trade Agreement Implementation) explanatory memorandum
Context
Australia already had a customs tariff system and had signed a new free trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. with the United Kingdom on 17 December 2021, but that deal could not change import duties on its own and needed UK-specific rates, phase-downA step-by-step reduction in duty over several years instead of an immediate drop to zero. schedules and a steel safeguardA temporary fallback to the normal tariff for some steel goods if the UK keeps restrictions on similar Australian steel exports. written into Australian law. The agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. was tabled in Parliament in February 2022, Parliament passed this bill in November 2022 so Australia could bring the deal into force, and the agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. then started on 31 May 2023.
Australia signs the UK free trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law.
Australia and the United Kingdom signed the free trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. on 17 December 2021. It was tabled in Parliament on 8 February 2022, creating the need for Australian tariff law to be updated before the agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. could take effect.
DFAT ↗Government introduces the tariff implementation bill
The bill was introduced to add a new schedule of preferential UK duty rates and related phase-downA step-by-step reduction in duty over several years instead of an immediate drop to zero. and safeguardA temporary fallback to the normal tariff for some steel goods if the UK keeps restrictions on similar Australian steel exports. rules to the Customs Tariff Act 1995The main Australian law that sets import duty rates, which this bill changes to match the UK trade deal..
Hansard ↗Parliament passes the bill
Both houses passed the bill in the same form, clearing the last parliamentary step needed before Royal AssentThe final step that turns a passed bill into an Act of Parliament. and implementation.
Parliamentary timeline ↗Royal AssentThe final step that turns a passed bill into an Act of Parliament. makes the bill law
Royal AssentThe final step that turns a passed bill into an Act of Parliament. turned the bill into an Act so Australia could complete its domestic legal preparation for the trade deal’s start.
Parliamentary timeline ↗Australia-UK free trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. starts
The agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. began on 31 May 2023, activating the new tariff settings under which most qualifying UK goods entered Australia duty-free while some tariffs continued to phase down.
Australian Financial Review ↗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 step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
Key criticism
The main criticism recorded was not about the tariff changes themselves but about the government taking too long to bring the implementation bill forward, which critics said delayed the benefits of the trade deal. That complaint came from a supporting Coalition senator, while otherwise no party represented in the debate opposed the bill or mounted a broader case against it.
No significant policy case against the bill is recorded so far.
Delayed implementation
The clearest criticism was that the government introduced the bill later than it should have, unnecessarily postponing the tariff cuts and other trade benefits linked to the Australia-UK agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law..
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 Cox. Defeated 14 to 31. Support came from Greens and Jacqui Lambie Network. Opposition came from Labor, Liberal Party, Nationals, and One Nation.
The Senate defeated the amendment, so the second-reading motion was not changed to include the proposed human rights statement.
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 Australia's tariff commitments under the Australia-United Kingdom free trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. and prepare for it to enter into force.
Read in Hansard ↗Simon Birmingham says the coalition supports the bill because it will implement the Australia-UK trade dealThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. and remove tariffs on nearly all Australian goods, creating new market access for exporters, workers and young people.
Read in Hansard ↗Wilson supports the bill, saying it implements the Australia-UK free trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. and will cut tariffs, improve market access and boost Australian exporters.
Read in Hansard ↗Tehan supports the bill and says the Australia-UK trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. corrects the 1973 break in the trading relationship, delivers major tariff cuts for Australian agriculture, and deepens ties between the two countries.
Read in Hansard ↗All speeches by bloc
5 speakers · 6 contributions · 5 support
“I want to turn briefly to the Australia-UK FTA and its enabling legislation. This agreement is Australia's most ambitious free trade agreement with any country other than New Zealand. It reflects the longstanding importance, quality and depth of the political, cultural and economic relationship between Australia and the UK, while setting a framework for future trade and cooperation.”Read the full speech in Hansard ↗
“Customs Tariff Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Clare O'Neil, including an amendment-moving contribution. They are grouped here so the speaker is listed once.
Moved amendment
O'Neil supports the bill and says it will implement Australia's tariff commitments under the Australia-United Kingdom free trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. and prepare for it to enter into force. She notes it will set preferential duty rates, preserve treatment for excise-equivalent goodsA duty set at the same level as the tax on Australian-made alcohol, tobacco, fuel or petroleum, so imports do not get a cheaper rate just because of the trade deal., and suspend preferences on certain UK steel goods while the UK safeguardA temporary fallback to the normal tariff for some steel goods if the UK keeps restrictions on similar Australian steel exports. remains in place.
“I commend this bill to the House.”Read this contribution in Hansard ↗
Second reading speech
O'Neil supports the bill and says the UK free trade agreementThe trade deal between Australia and the United Kingdom that this bill puts into Australian customs law. is a gold-standard deal that will boost trade, investment, jobs and export diversification. She says it will give Australian goods duty-free access to the UK, cut red tape, and strengthen climate and mobility cooperation.
“On the UK agreement, there are two customs bills before the House, which implement Australia's obligations under that agreement. This agreement is a gold-standard trade agreement. We already have a very healthy trading relationship with the UK, and this agreement will enhance that strong economic partnership. It will drive increased trade, two-way investment, economic growth and job creation. It will build on the very strong and, of course, very lengthy people-to-people links through measures designed to increase the mobility of skilled workers and young people in both directions. It will contribute to Australia's export diversification and economic recovery from COVID-19. When it enters into force, over 99 per cent of Australian goods exports will enter the UK duty-free, a huge achievement for our country. That includes sheepmeat, beef, dairy, sugar and wine. Australian consumers will also benefit from increasing access to competitively priced goods and exposure to new technologies and innovative practices. It will boost efficiency, reduce cost and cut red tape. It also sets out the framework for cooperation on a much broader range of environmental issues, which is, of course, very important to the Australian people. That includes support for transition to lower carbon and more climate-resilient economies on both sides of the agreement.”Read this contribution in Hansard ↗
“Now, rather than an orgy of self-congratulations on the Labor side, I listened to shadow minister Birmingham congratulating himself. This is a very good development, and delivering these agreements through the parliament this side of Christmas does mean significant progress on tariff reduction and significant progress for exporters and importers. It's a good thing to get it through, but there is more work to be done. We're ready to commence the second wave, the more substantial wave of negotiations with India over the more substantial round of bargaining that needs to occur to establish the second wave India agreement.”Read the full speech in Hansard ↗
“The Australia-United Kingdom Free Trade Agreement includes ambitious outcomes to benefit both Australia and the United Kingdom. These include: eliminating tariffs on over 99 per cent of Australian goods exported to the United Kingdom, valued at about $9.2 billion; enhancing pathways for workers and young people to work in both countries; and supporting the free movement of data to enhance growth in the digital economy.”Read the full speech in Hansard ↗
6 speakers · 6 support
“Australia's FTA with the United Kingdom, as negotiated and legislated here, is the most comprehensive and ambitious free trade agreement that Australia has with any nation other than New Zealand. On entering into force, tariffs on over 99 per cent of Australian goods exported to the UK will be eliminated, valued at around $9.2 billion.”Read the full speech in Hansard ↗
“When it comes to the UK FTA, this is something that, once again, personally, I was very keen to achieve, because this agreement rights a wrong that occurred in 1973. I remember clearly, as a young boy growing up on a farm in Australia—it's one of my earliest memories—the time when the UK turned their back on Australian agriculture. They headed to the European Union and left Australian agriculture high and dry. The UK had been our major market and was where we'd sent most of our agricultural produce. When the UK headed to the EU they left Australia high and dry. So, to be able to get an agreement now that rights that wrong is incredibly important for Australian agriculture. What were we able to achieve? Tariffs on Australian wine are reduced. They are removed when the agreement enters into force. That is a $43 million benefit to the Australian wine industry. For beef, we have a tariff-free quota of 35,000 tonnes on the agreement's entry into force and, over time, that goes to free trade. For sheepmeat, there is a tariff-free quota of 25,000 tonnes, which over time goes to free trade. For sugar there is a tariff-free quota of 80,000 tonnes, which then goes to free trade. Dairy tariffs are eliminated over five years.”Read the full speech in Hansard ↗
“On entry into force, just to go back to the UK deal: tariffs on over 99 per cent of Australian goods exports to the UK will be eliminated. That's valued at around $9.2 billion, to get your head around some of those figures.”Read the full speech in Hansard ↗
“As I said, we have been completely bipartisan in supporting the government on these bills; however, why the government has been so haphazard and slow in the implementation of this agreement is absolutely baffling. It shows they have little or no idea on how to govern. Obviously, we support these bills and therefore call on the government to stop the delay. Let's get these agreements implemented as quickly as possible so that Australian exporters can start to reap the benefit of the coalition's hard work.”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 ↗
“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 ↗
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 step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
