I rise to speak on the Customs Legislation Amendment (Controlled Trials and Other Measures) Bill 2022. The bill before the House will allow for time-limited trials of trade and customs practices with approved entities in a controlled regulatory environment known as a regulatory sandbox. The bill contains two schedules: schedule 1, which contains the provisions relating to the regulatory sandbox framework; and schedule 2, which contains technical amendments which, amongst other things, relate to the process in which notices of intention to propose customs tariff alterations occur.
In speaking to this bill I note that the coalition introduced the Customs Amendment (Controlled Trials) Bill 2021 in the previous parliament, with that bill dealing with the same subject matter as this bill. The bill the government has introduced is for all intents and purposes the same bill the coalition introduced, especially those provisions at schedule 1, with the only additions being those technical amendments incorporated into schedule 2. I’d like to thank the minister for the government’s ringing endorsement of our simplified trade system agenda, of which this bill formed a part.
The bill encourages innovation in testing new business models and regulatory approaches with appropriate safeguards through allowing the modification or waiver of existing licensing, importing and exporting obligations under the Customs Act 1901. The Comptroller-General of Customs, under these amendments, will be provided with the power to vary, suspend or revoke an entity’s approval to participate in a controlled trial. In doing so, they must provide the entity with a written notice, along with a minimum of seven days before the notice takes effect.
Taking part in a controlled trial is voluntary, with the trials themselves restricted to a maximum limited duration of no more than 18 months, with no imposition of penalty or sanction for failure to comply with the trial. However, the comptroller-general has the ability to suspend or revoke an entity’s approval, as previously outlined, and this is not subject to merits review. By placing the qualification criteria and rules for controlled trials in delegated legislation, it will allow for controlled trials to be undertaken with a greater degree of certainty and can be administered effectively and in a timely manner.
I note that the previous bill was referred to the Senate’s Legal and Constitutional Affairs Legislation Committee, which recommended that that iteration of the bill be passed. Labor members of that committee at the time complained that aspects of the bill, such as the qualification criteria for participation in controlled trials, would be administered through delegated legislation rather than primary legislation. Despite belonging to the same party which voiced these complaints, the minister has now proposed the exact same bill. I note my colleague the member for La Trobe, who was the responsible assistant minister at the time, aptly responded to these complaints, noting that flexibility is required in a dynamic trade environment and that the use of delegated legislation means changes can be made more expeditiously, as opposed to bringing new legislation through the parliament each time. Delegated legislation is also subject to parliamentary oversight through disallowance processes. If we came to this place to amend the Customs Act 1901 each time a controlled trial was being considered, it would defeat the very purpose of having controlled trials.
This bill marks the new minister’s ringing endorsement of the coalition’s simplified trade system, known as the STS agenda. I appreciate she has seen the value of a more flexible and productive trade system. The coalition’s STS agenda aimed to make cross-border trade for Australian businesses easier and less costly. The STS agenda will mean businesses are more productive, supply chains are more secure and the ABF can direct more attention to addressing higher-order threats.
The Home Affairs portfolio was leading a number of initiatives under the STS agenda and making a significant contribution to supporting whole-of-government efforts to simplify the end-to-end trade environment for business. I sincerely hope that the home affairs department is able to continue this contribution, given that the portfolio was gutted by this government when it came to power.
I sincerely hope that the work we did continues, but very little legislation has come through from this portfolio area. We note that the minister responsible for this area has refused to back legislation, particularly in relation to ransomware, and, as we saw this week, she let the ball drop on a key pillar of Operation Sovereign Borders. I am glad that with this bill at least they’ve seen the value of the work that was already done and brought this forward.
Given the economic conditions being created under this Labor government, businesses will need every support and every opportunity to keep their heads above water. Rising energy prices, rising interest rates and the rising cost of living are putting the squeeze on household budgets. These will all have an impact on our businesses. We certainly are in for some challenging times under this new government. The coalition, however, will always support good policy that seeks to make life easier for businesses, and for that reason I commend the bill to the House.