Government Charge Will Drive Up Cost of Online Shopping

1 October 2024

The Conference of Asia Pacific Express Carriers (CAPEC) wishes to express its significant concern regarding the Federal Government’s introduction of the Self Assessed Clearance Charge (SAC Charge) on our businesses from today.

The introduction of a 36 cents SAC Charge on transport couriers delivering low-value parcels (under $1,000) will effectively operate as a new tax on online shopping, driving up the cost of imported goods for Australian households.

This new fee is designed to recover $27 million in bio security operating costs but because of its poor design the cost of administering the SAC Charge will be considerably higher and these increased fees will ultimately be passed on through the supply chain to the consumer.

The exact cost remains unknown due to the rushed nature of its implementation and lack of transparent industry engagement. We estimate that the real cost of implementing this fee could be up to $3 on top of the 0.36 cents government charge.

CAPEC supports effective biosecurity measures that are essential in protecting Australia’s economy, environment and way of life.

However, the proposed SAC Charge will unnecessarily impact Australian households that purchase everyday items online, at a time when few can afford the extra cost of living.

CAPEC has been advocating for the government to instead collect the SAC Charge from the seller in the same way that GST on imported goods is collected. This model already exists, is tried and tested and will not result in a hefty increase on the price of parcels delivered to Australian doorsteps.

Responsibility for administering the SAC Charge sits with the Department of Agriculture, Fisheries and Forestry, which has stated that it will consider alternative models for recouping costs associated with biosecurity clearances in the future.

This is another point of concern for CAPEC. If the department itself admits that the model that is being brought in is flawed, the introduction of the SAC Charge should be postponed for a second time, while the government works with stakeholders to perfect the model before
implementation.

Furthermore, it makes no sense that the SAC Charge be levied on the carriers who in themselves do not represent a biosecurity risk.

Comments attributed to Stephen Stroner, CAPEC Chairman and Managing Director of UPS:

“CAPEC believes it would be grossly irresponsible to introduce a new tax regime that harms Australian households during a cost-of-living crisis.

“The Government’s consultation over this tax has been insufficient, and our members are scrambling to implement the collection regime for the Government following an already aborted start date of July 1 this year.

“We continue to ask and encourage the Government to urgently repeal the SAC Charge, take the time to get this right, and work constructively with industry to improve its design.”

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Luke Forrestal
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