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The Albanese government has announced the reform of Australia’s defence export control framework, with the release of the exposure draft for the Defence Trade Controls Amendment Bill 2023 as part of implementing the 2023 Defence Strategic Review.
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The Commonwealth government is calling for stakeholder feedback and input on the exposure draft for the Defence Trade Controls Amendment Bill 2023 as part of the Albanese government’s push to strengthen Australia’s defence export control framework.
Serving as a driving force behind this legislative and regulatory reform, the government’s exposure draft states, “The Defence Strategic Review made clear that Australia is facing the most difficult set of strategic circumstances since the Second World War. To keep pace with these emerging challenges, it is essential that Australia has a robust protective security environment. It is also critical that Australia works with like-minded partners, especially with the United Kingdom and the United States, to enhance defence trade, deepen military interoperability and enhance defence capabilities.”
The proposed bill will also provide a national exemption to the UK and the US from Australia’s export control permit requirements under the Defence Trade Controls Act 2012 as part of the government’s commitment to “enhancing defence trade with likeminded partners”.
In support of the AUKUS trilateral partnership, the government is working with its US and UK counterparts to conduct a wholesale reform of their respective defence export control frameworks and legislations as a mechanism for streamlining and easing the flow of controlled technologies, knowledge, and systems between the three partners.
The exposure draft’s explanatory memorandum identifies a number of background factors that require amendment at the policy level, with an emphasis on enhancing, streamlining, and developing a robust Australian defence industrial base via amendments to include:
- Australia’s export control system is a key element of Australia’s protective security framework, this framework aims to stop military goods and technology – and goods and technology that can be used in chemical, biological and nuclear weapons – from being transferred to individuals, states or groups with interests prejudicial to Australia’s security, defence or international relations.
- This export licence-free environment will revolutionise trade among and between AUKUS partners and encourage industry, higher education, and research sectors in all three nations to innovate and cooperate with lower technology transfer barriers and costs of trade. This would provide Australia and our partners a genuine capability development edge.
- To improve the speed and scale of technology transfer between AUKUS partners, Australia, the United Kingdom, and the United States are reviewing their export control regimes to support the creation of an export licence-free environment among and between AUKUS partners.
The government’s proposed reforms would create an export licence-free environment to support industry, higher education, and research sectors in all three countries, including by reducing barriers to technology transfer and costs of trade.
This bill would strengthen Australia’s defence export control framework, including by creating three new criminal offences in the Defence Trade Controls Act 2012 for the:
- Supply of Defence and Strategic Goods List (DSGL) technology to a foreign person within Australia.
- Supply of DSGL goods and technology that were previously exported or supplied from Australia, from one foreign country to another foreign country, or to a foreign person within the same foreign country.
- Provision of DSGL services.
Additionally, the explanatory memorandum explains the objective of the proposed amendment, stating, “The purpose of this bill is to strengthen Australia’s export control framework in order to establish an export control regime that is comparable to the one the United States administers. Further, if implemented, these legislative proposals will create a licence-free environment for the supply of DSGL goods and technology and the provision of DSGL services from Australia to the United Kingdom and the United States.”
The full exposure draft for the Defence Trade Controls Amendment Bill 2023 can be found here.
Submissions for feedback can be made by referring to the submission guidance document and email to
