The Albanese Government has unveiled draft legislation that will streamline product safety standards and save businesses $5 billion over 10 years.
Currently, the Consumer Law, does not easily allow for existing overseas product safety standards to be recognised alongside Australian standards. These overseas standards are widely accepted in other major economies and have been developed by expert international organisations.
Under the new laws, businesses will be able to import products without duplicative testing and compliance measures, provided the products have been tested and are found to comply with the requirements of an equivalent overseas safety standard.
This change will help lower the cost of household products and offer greater product choice for consumers.
The proposed changes will allow the Minister to:
- more easily recognise overseas product safety standards following advice from Australian Competition and Consumer Commission in instances where it is safe to do so
- address complex regulations which make the product safety framework slow to respond to changes overseas
- remove unnecessary compliance cost and confusion.
These changes will allow for businesses to expand their product ranges and import products sooner without compromising on consumer safety.
The legislation also ensures that compliance requirements in Australia do not fall out of step with international best practice as standards are updated.
Exposure draft legislation, explanatory materials, previous stakeholder submissions and the Decision Regulatory Impact Statement are available on the Treasury website.
Consultation on the draft legislation is open from 11 to 25 October 2024.
Comments attributable to Assistant Treasurer and Minister for Financial Services, Stephen Jones:
“Lower costs for businesses will mean lower costs for households. The Albanese Government will always back Australians to keep more of what they earn.”
“This change will ensure Australian businesses aren’t falling behind the rest of the world, while delivering savings on unnecessary costs without putting the safety of Australians at risk.”
“This builds on the suite of measures taken by the Albanese Government to ease cost of living pressures on households and businesses.”