Phased transition was originally set to commence from 1 July 2026, pushing costs up for exporters
The Australian government has announced it will defer the phased transition to full cost recovery for export regulatory services for one year until 1 July 2027.
The deferral was implemented in recognition of the current disruptions being experienced by Australia’s farmers and producers, a move welcomed by the fresh produce industry.
The government originally announced plans to introduce a new cost recovery arrangement for export regulatory functions in December 2025, with a phased transition set to commence on 1 July 2026.
It argued the change was required as the gap between what it costs to deliver these export services – such as audits, inspections, document issuance, system assurance and incident management – and the revenue raised from export cost recovery had existed for 16 of the last 20 years. A gap that had been exacerbated by trading partners’ increasing complexity and requirements for goods entering those markets, inflationary pressures, among other things. Under the plan, exporters would cover the full cost of export services by 2029/30.
NFF president Hamish McIntyre said the delay provides welcome breathing space for farmers and exporters facing sustained input cost pressures and market uncertainty.
“These are practical decisions we’ve called for that will deliver more certainty for farmers and exporters at a time when margins are under real pressure,” McIntyre said.
“We have been clear that additional cost burdens, such as the full cost recovery plan, risk undermining competitiveness and confidence right across the agricultural sector. This decision is a direct response to those concerns.”
Fruit Growers Tasmania also welcomed the news and highlighted the effect the Middle East conflict was having on the industry.
“Fruit Growers Tasmania was just one of the many industry representatives to question what could only be seen as unfair export cost hikes, so today’s response by the Australian Government is pleasing,” the organisation said.
”With the ongoing conflict in the Middle East pushing up prices and putting pressure on all Australians, it’s vital the government has taken this action to support farmers and keep our exports moving, making sure Australia’s food system remains strong during this time of uncertainty.
“The delay will allow for a comprehensive review of the proposed increases, charging structure and cost management of the Department of Agriculture, Fisheries and Forestry.”
