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Deputy Prime Minister and Defence Minister Richard Marles has announced the finalisation of an export licence-free environment, unlocking billions of dollars of investment and cutting red tape for Australian industry and AUKUS partners.
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From 1 September 2024, AUKUS partners will operate in this new export licence-free environment, significantly boosting defence trade and innovation, via a host of “generational” legislative reforms that provide reciprocal national exemptions from Australia’s respective export control frameworks.
These changes mean that the respective national exemptions remove the licensing requirements for most controlled goods, technologies and services exported, re-exported or transferred to or within AUKUS nations.
Deputy Prime Minister Marles welcomed this achievement, saying, “These critical reforms will revolutionise defence trade, innovation and cooperation, enabling collaboration at the speed and scale required to meet our challenging strategic circumstances.”
The changes to our export control mechanisms will enable:
- Licence-free trade for over 70 per cent of defence exports from the US to Australia that are subject to International Traffic in Arms Regulations.
- Licence-free trade for over 80 per cent of defence trade from the US to Australia that are subject to Export Administration Regulations.
- The elimination of around 900 export permits required under the previous export controls from Australia to the US and the UK valued at $5 billion per year.
- The removal of approximately 200 export permits required for defence exports from the UK to Australia valued at over $129 million per year.
In support of this broader trilateral legislative shift, Australia has implemented national exemptions for the UK and the US through the Defence Trade Controls Amendment Act 2024 and associated regulations.
On the American side, the US provided national exemptions through amendments to its International Traffic in Arms Regulations and Export Administration Regulations, and the UK provided national exemptions through an AUKUS-specific Open General Export Licence.
“This is another example of how the Albanese government is working for Australians, delivering in practical ways to support Australian jobs, research and science,” the Deputy Prime Minister said.
These legislative and regulatory amendments will be critical in driving scientific and technological collaboration, including under AUKUS Pillar II advanced capabilities.
As part of the 2024–25 budget, the government committed $28 million to implement reforms under the Defence Trade Controls Amendment Act 2024, including to support industry engagement and accelerate trade between AUKUS partners.
