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Deputy Prime Minister and Defence Minister Richard Marles and Defence Industry Minister Pat Conroy have announced the introduction of Defence Trade Controls Amendment Bill 2023 to cut red tape and unlock billions of dollars’ worth of investment.
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As part of the legislation introduced by the Albanese government, Australia’s existing trade controls will be expanded to regulate the supply of controlled items and provision of services on the Defence and Strategic Goods List, ensuring our cutting-edge military technologies are protected.
This legislation will extend existing controls to the supply of these items to foreign persons and entities within Australia, and between entities overseas.
Critical for delivering key defence programs like the conventionally armed, nuclear-powered submarines to be delivered as part of the trilateral AUKUS agreement, these significant reforms will also provide a national exemption for the trade of defence goods and technologies with the United States and the United Kingdom, establishing a licence-free environment for Australian industry, research, and science.
Deputy Prime Minister and Defence Minister Richard Marles said, “This legislation will provide Australian industry, science, and research sectors with greater opportunities for collaboration and trade with our AUKUS partners without burdensome red tape.”
A key component, the national exemption is expected to deliver AU$614 million in value to the Australian economy over 10 years, by reducing costs to local businesses and unlocking investment opportunities with our AUKUS partners.
Additionally, the legislation removes the requirement for permits on defence exports to the United States and the United Kingdom, removing the need for almost a third of annual export permit applications and cutting red tape from AU$5 billion worth of defence exports each year.
“This will benefit defence industry in Australia, unlocking over $5 billion – more than half of our annual exports – to our AUKUS partners," the Deputy Prime Minister explained.
Minister for Defence Industry Pat Conroy reinforced the statements made by the Deputy Prime Minister, saying, “This legislation is an important step in the Albanese government’s strategy for acquiring the state-of-the-art nuclear-powered submarines that will be key to protecting Australians and our nation’s interests.”
The legislation is expected to also see significant flow on benefits for Australian jobs and make it easier for Australian industry and research to supply US and UK markets.
“It not only paves the way for greater cooperation among AUKUS partners, supporting the creation of jobs and presenting an unprecedented opportunity for Australia’s defence manufacturing industry, but will also create a more efficient and integrated industrial base across the three nations,” Minister Conroy explained.
Since July, Defence has undertaken targeted consultations with key stakeholders across industry, higher education, and research sectors and the government is committed to working collaboratively as the legislation progresses through the Parliament.
This is the fifth piece of legislation introduced by the Albanese government which is delivering on the AUKUS partnership.
