The Customs Tariff Amendment (Geelong Treaty Implementation) Bill 2025 amends the Customs Tariff Act 1995 to waive customs duties on goods imported under the Nuclear-Powered Submarine Partnership and Collaboration Agreement between Australia and the United Kingdom (the Geelong Treaty). It introduces a free rate of duty for treaty-related imports, effective upon Royal Assent and the treaty’s entry into force.
The Bill amends the Customs Tariff Act 1995 by inserting a definition of “Geelong Treaty” into subsection 3(1) and by adding a new concessional item 58A to Schedule 4. Item 58A prescribes a ‘free’ rate of customs duty for goods imported “for use under” the Nuclear-Powered Submarine Partnership and Collaboration Agreement between Australia and the UK, done at Geelong on 26 July 2025. The Bill’s commencement provisions specify that Schedule 1 (which contains item 58A) takes effect on the later of the day after Royal Assent and the day the Geelong Treaty enters into force for Australia. A notifiable instrument by the responsible Minister must publicly declare the treaty’s entry-into-force date. An application provision ensures that goods not yet processed through customs at the time of entry into force are also eligible for the concession. The Office of Parliamentary Counsel’s Financial Impact Statement estimates nil net revenue effect from these amendments.
The Bill implements Australia’s clear legal obligations under the Geelong Treaty by ensuring no customs duties are imposed on treaty-related imports, thus upholding the rule of law and honouring international commitments.
By facilitating the import of critical components for the Nuclear-Powered Submarine Partnership, the Bill strengthens Australia’s strategic defence collaboration with the United Kingdom and enhances national security. Removing tariff barriers reduces administrative delays and costs for equipment essential to collaborative submarine development, promoting operational readiness and alliance interoperability [Judgment].
The amendment is designed to have no revenue impact on the budget, making it a cost-neutral measure that fulfils treaty requirements without sacrificing fiscal balance. It demonstrates Australia’s commitment to international cooperation and bolsters the nation’s standing and influence on the global stage.
While implementing a binding treaty obligation is important, the actual revenue impact of the concession is nil, calling into question whether amending primary legislation is the most efficient or necessary approach. Simpler administrative measures could achieve the same outcome without a stand-alone amendment.
Further, by granting a targeted duty waiver solely for defence-related imports, the Bill introduces a special exemption that may erode the principle of equal treatment under the tariff system. This could set a precedent for other industries to seek similar concessions, leading to unfair competitive advantages and potential lobbying for exemptions across sectors [Judgment].
2025-10-30
Passed Both Houses
Unspecified
Home Affairs
Defence, National Security, Trade Policy