Announcement date
30/11/2023
Link to announcement
https://www.minister.defence.gov.au/media-releases/2023-11-30/new-legislation-unlock-billions-dollars-aukus-industry-partners
Problem being addressed
The Impact Analysis (IA) considers two problems:
- Australia’s current export control framework prevents access to a country-based exemption to the licencing requirements of the US Arms Export Control Act. This causes delays to accessing critical capabilities, increased regulatory burden and national security risks and restricts Australian industry growth and collaboration.
- Gaps in Australia’s existing export control legislative provisions enable the transfer of controlled goods and technologies both within and outside of Australia, to foreign entities. These foreign entities’ interests and actions may be prejudicial to the security, defence or international relations of Australia.
Proposal
The IA considers three options to address the stated problems:
1. Maintaining Australia's existing export control framework.
2A. Changing Australia's export control framework by amending the Defence Trade Controls Act (2012) (the DTC Act) to regulate the export of deemed supplies, re-supplies and the provision of DSGL services. This option includes country-based licencing exemptions for the UK and the US and certain exceptions for foreign national employees. The IA states that further exceptions will be clarified in consultation with stakeholders at a later point.
2B. This option includes the same amendments to the DTC Act as option 2A. This option includes a country-based licencing exemption for the UK and the US but does not include complementary exceptions as with Option 2A.
The IA finds that Option 2A delivers the greatest achievement of government objectives, along with the greatest net benefit of $614 million over a 10-year period when compared to Option 1.
Assessed Impact Analysis outcome
Good practice
Assessment comments
The IA addresses the seven IA questions and follows an appropriate policy development process commensurate with the significance of the problem and magnitude of the proposed intervention. In particular, the IA clearly explains the problems with the current legislative framework, the viable options to address those problems and meet Government objectives, and who might be impacted by the considered options should the export control framework be amended.