There has been a mixed initial reaction to Treasurer Wayne Swan’s sixth budget from industry and community groups.

Below you can find a brief overview of the federal budget that are of most interest to our clients in the areas of Customs duties and Government grants.


Federal Budget


 Restructure = More than 200% price increase in IPC

The Government will restructure the Import Processing Charge (IPC) to recover the costs of all import related cargo and trade functions undertaken by the Australian Customs and Border Protection Service. The new charges will come into effect from 1 January 2014 and apply to consignments valued over $10,000, generating additional revenue of $674 million over four years. The new charges will come into effect on 1 January 2014.

For consignments valued over $10,000, the IPC for electronic sea import declarations will be increased by $102.60 to $152.60 per consignment; and the IPC for electronic air import declarations will be increased by $81.90 to $122.10 per consignment.

For consignments valued over $1,000 and up to $10,000 the IPC will remain at current levels: $50.00 for electronic sea import declarations and $40.20 for electronic air import declarations. The IPC is not applied to consignments valued at $1,000 or less.


Total customs duty revenue Estimates & Projections

2012-2013 – $8,470 million

2013-2014 – $8,830 million

2014-2015 – $8,970 million

2015-2016 – $9,220 million

2016-2017 – $9,740 million



• Establishing a new Anti – Dumping Commission to investigate complaints;

• Increasing funding to the Australian Customs and Border Protection Service for investigations; and

• Introducing stronger remedies against overseas producers that deliberately breach anti – dumping      rules.


Excise and excise equivalent Duty

The Government will also index tobacco excise and excise equivalent customs duty to average weekly ordinary time earnings (AWOTE), replacing the current Consumer Price Index (CPI) indexation. This will ensure tobacco excise keeps pace with income growth.


Government Grants

 R&D Tax Incentive: Quarterly Payments to SMEs

The Government will allow eligible entities to claim the Research and Development (R&D) refundable tax offset on a quarterly basis. The measure will apply for each quarter commencing on or after 1 January 2014.

The quarterly payment of claims has no fiscal balance impact, but has a negative underlying cash balance impact of $270 million over the forward estimates.

Funding for this measure was provided in the Contingency Reserve in the Mid-Year Economic and Fiscal Outlook 2011-12. The Government will also provide the Australian Taxation Office with $9.7 million (including $1.3 million in capital funding) to implement the measure.


R&D Tax Incentive: $20 billion Australian turnover limitation

The Government is better targeting support for Research and Development (R&D) by limiting access to the R&D tax incentive so that it only applies to companies with annual aggregate Australian turnover of less than $20 billion from 1 July 2013.

This is estimated to increase tax receipts by $1.1 billion over the forward estimates period. This change will ensure that the incentive is targeted to companies that are more responsive to the incentive, delivering value for money for the community.


R&D tax Incentive: Expected Budget Expenditure

Tax Incentive payments, which are expected to be $135 million higher in 2013-14 ($574 million over the four years to 2015-16), largely reflecting higher than expected large claims in the first year of operation of the 2009-10 Budget measure “An Innovation and Higher Education System for the 21st Century—Research and Development Tax Credit”.

It is expected that a higher level of claims will continue across the forward estimate.

For further information please leave your details here for a free assessment or alternatively

contact Saving Point on (03) 9555 3551 or send us an email on [email protected]

Share This