Inserts a new defined term into the Customs Tariff Act 1995: "Geelong Treaty" (the Nuclear‑Powered Submarine Partnership and Collaboration Agreement between Australia and the UK, done at Geelong on 26 July 2025) (Schedule 1, item 1 inserted into subsection 3(1)).
Adds a new tariff entry (item 58A) to Schedule 4 of the Customs Tariff Act that gives a "Free" rate of customs duty for "Goods that are for use under the Geelong Treaty" (Schedule 1, item 2).
Sets how and when these changes start to operate: Schedule 1 only comes into effect on the later of (a) the day after Royal Assent and (b) the day the Geelong Treaty enters into force for Australia. The Minister must publish that commencement day by notifiable instrument. If the treaty never enters into force for Australia, Schedule 1 never commences (Section 2).
Provides an application rule so the new tariff treatment applies to goods imported on or after commencement, and to goods imported before commencement where the time for calculating the import duty had not yet occurred (Schedule 1, item 3).
Who this affects
Importers and their suppliers: businesses or government agencies importing goods destined to be used under the Geelong Treaty will be eligible for duty-free entry where the goods meet the Act's description.
Australian Border Force/Customs administration: responsible for determining entitlement, processing claims, checking documentation and enforcing eligibility.
Australian Government fiscal position: the Commonwealth forgoes customs revenue on qualifying imports.
The Customs Tariff Amendment (Geelong Treaty Implementation) Act 2025 amends the Customs Tariff Act 1995 to insert a definition of the Geelong Treaty into subsection 3(1). The definition covers the Nuclear-Powered Submarine Partnership and Collaboration Agreement between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland done at Geelong on 26 July 2025, with a note pointing to the Australian Treaties Library on the AustLII website for the treaty text. Schedule 4 of the Customs Tariff Act 1995 receives a new table item 58A placed after item 58, stating that goods for use under the Geelong Treaty attract a free rate of customs duty. Item 3 of Schedule 1 sets out the application rule, covering goods imported on or after Schedule commencement and goods imported earlier where the duty rate calculation time had not yet arrived. Section 2 of the Act provides commencement details through a table: sections 1 to 3 and unlisted provisions start on royal assent, which occurred on 4 December 2025, while Schedule 1 starts on the later of the day after assent or the day the treaty enters into force for Australia. The Minister must announce the treaty entry date by notifiable instrument, and if that event never occurs then Schedule 1 does not commence at all. The Act contains no other substantive clauses beyond the short title, commencement, schedules provision and the single schedule of amendments. No amendments were circulated during passage through either house.
Main concepts
Official source available
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Implements Australia’s obligations under the Nuclear-Powered Submarine Partnership and Collaboration Agreement between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland by amending the Customs Tariff Act 1995 to provide for a free rate of customs duty for goods that are for use under the treaty.
Parliamentary progress
Progress
House of Representatives
Introduced and read a first time
30 Oct 2025
Second reading moved
30 Oct 2025
Second reading debate
04 Nov 2025
Referred to Federation Chamber
04 Nov 2025
Second reading debate
05 Nov 2025
Second reading agreed to
05 Nov 2025
Reported from Federation Chamber
05 Nov 2025
Third reading agreed to
05 Nov 2025
Senate
Introduced and read a first time
06 Nov 2025
Second reading moved
06 Nov 2025
Second reading debate
26 Nov 2025
Second reading agreed to
27 Nov 2025
Third reading agreed to
27 Nov 2025
Finally passed both Houses
27 Nov 2025
Assent
Act no: 78
Year: 2025
04 Dec 2025
Notes
Documents and transcripts
Text of bill
First reading
As passed by both Houses
Explanatory memoranda
Explanatory memorandum
Transcript of speeches
All second reading speeches
Minister's second reading speech
Proposed amendments
No proposed amendments have been circulated.
Schedules of amendments
No documents at present
Notes
An electronic version of this Act is available on the Federal Register of Legislation ()
Why the law exists (official purpose) and how that maps to what it does
The explanatory material states the Act implements Australia’s obligations under the Geelong Treaty by allowing certain treaty-related goods to enter Australia free of customs duty. Mechanically the Act achieves that by adding a duty‑free tariff line that applies to goods "for use under the Geelong Treaty."
Testing the official purpose against practical costs, incentives and trade-offs
Who pays and who benefits: The Commonwealth gives up customs duty revenue on qualifying imports (cost to the budget). The direct beneficiaries are importers of goods used under the treaty and their supply chains (concentrated benefit).
Who decides: The Minister decides when the tariff changes commence by declaring when the treaty enters into force for Australia. Customs (or its delegate) decides in individual cases whether imported goods are "for use under the Geelong Treaty" and therefore duty‑free (administrative decision-making and enforcement).
Behavioural changes and incentives: Importers and suppliers have an incentive to structure imports and documentation to show goods are for treaty use so they can claim the Free rate. That may change contracting, sourcing and invoicing practices for projects covered by the treaty.
Compliance burden and verification: The Act’s wording leaves the category "for use under the Geelong Treaty" undefined in the Customs Tariff Act itself. That creates an enforceable eligibility question for Customs — importers will need to supply documentary evidence of intended use, and Customs will need guidance or rules to assess claims. This raises administrative costs (for both importers and Customs) and creates scope for disputes or requests for rulings.
Implementation risk and discretion: Because entitlement depends on interpretation of the treaty and of "use under the Geelong Treaty," there is scope for administrative discretion, uncertainty, and litigation. The law ties commencement to the treaty entering into force and a Ministerial instrument; this sequencing is clear but produces a dependency on a non-domestic event and an executive notice.
Opportunity costs and fiscal effect: Duty relief is a form of targeted expenditure through the tax system. The Government foregoes tariff revenue that could otherwise fund alternatives; the size of that cost depends on the volume and value of qualifying imports.
Market effects and competition: The change lowers the cost of qualifying imported goods relative to non‑qualifying goods. That benefits entities dealing in treaty‑related supply and may give them a competitive advantage in supplying projects covered by the treaty. The effect is narrowly targeted to treaty-related activity rather than a broad sectoral subsidy.
Notes on operational detail and limits
The statutory change is short and narrowly framed: it does not itself define specific categories of goods, nor set procedures for evidencing entitlement. Practical operation will rely on: (a) the treaty text (to identify what uses count), (b) customs administrative practice and any published guidance or rulings, and (c) ordinary customs processes for proving eligibility.
The application provision allows the concession to apply to imports made before commencement in cases where duty had not already been worked out, reducing some timing distortion for pre-commencement shipments (Schedule 1, item 3).
Bottom line (mechanical effect, not a policy judgement)
The Act implements a narrowly targeted duty-free treatment for goods used under the Geelong Treaty once the treaty is in force for Australia. It shifts cost from importers to the Commonwealth (forgone customs revenue) and creates a requirement for Customs to determine and verify whether particular imports qualify as "for use under the Geelong Treaty."
(References: commencement and ministerial announcement requirement — Section 2; definition inserted into subsection 3(1) and tariff item insertion — Schedule 1, items 1–2; application provision — Schedule 1, item 3.)
The central concept is the Geelong Treaty, defined precisely as the Nuclear-Powered Submarine Partnership and Collaboration Agreement concluded between Australia and the United Kingdom at Geelong on 26 July 2025. Another key concept is the free rate of customs duty, which removes any tariff liability for goods meeting the use requirement under that treaty. Schedule 4 of the Customs Tariff Act 1995 operates as the vehicle for concessional duty rates, and the new item 58A adds a treaty-specific concession to that schedule. Commencement is conditional on treaty entry into force for Australia, creating a linkage between domestic tariff law and international treaty processes. The notifiable instrument requirement places an administrative duty on the Minister to record publicly the date the treaty becomes operative for Australia. The application provision distinguishes between goods whose import occurs after commencement and those whose duty rate timing straddles the commencement date, ensuring transitional fairness without altering the underlying tariff classification system. These concepts together implement a targeted duty concession tied directly to treaty obligations rather than creating a broad new tariff regime.
Who it affects
The changes affect importers who bring goods into Australia that are intended for use under the Geelong Treaty, including entities supplying equipment, components or materials connected to the nuclear-powered submarine partnership between Australia and the United Kingdom. Australian government agencies and defence contractors engaged in activities authorised by the treaty will benefit from the free duty rate when importing qualifying goods. Customs brokers and freight forwarders handling such shipments must apply the new concession when lodging import declarations after the relevant commencement date. The United Kingdom government and its suppliers exporting goods for treaty purposes gain indirect advantage through reduced landed costs in Australia. No direct obligations fall on ordinary consumers or unrelated businesses, as eligibility is strictly limited to goods for use under the defined treaty. The Minister for Home Affairs or the relevant portfolio minister bears responsibility for issuing the notifiable instrument that triggers commencement once the treaty enters into force.
What people will want to know
People will want to know exactly when the free duty rate becomes available, which depends on the later of the day after 4 December 2025 or the date the Geelong Treaty enters into force for Australia, with that date to be announced by the Minister through a notifiable instrument published on the Federal Register of Legislation. They will also want to know what goods qualify, namely any goods that satisfy the condition of being for use under the treaty, without further specification in the Act itself. Another practical question concerns goods already in transit or warehoused before commencement: the application rule allows the free rate if the duty calculation time had not occurred prior to commencement. Importers will need to know how to claim the concession, which occurs through standard customs entry processes referencing the new Schedule 4 item 58A. There is no information on whether specific certification or end-use verification procedures will apply beyond existing customs requirements. The Act does not address whether the concession extends to goods re-exported or used outside the treaty scope.
Status and what happens next
The Act received royal assent on 4 December 2025 and is cited as Act No. 78 of 2025. It originated in the House of Representatives, where it was introduced and read a first time on 30 October 2025, with the second reading moved the same day. Debate occurred in the Federation Chamber on 4 and 5 November 2025, the second reading was agreed to on 5 November, and the third reading passed the same day. The Senate received the bill on 6 November 2025, conducted its second reading debate on 26 November, agreed to the second reading on 27 November and passed the third reading on the same date, with final passage recorded on 27 November 2025. No proposed amendments were circulated in either house. Sections 1 to 3 are already in force following assent. Schedule 1 remains inactive until the treaty entry into force condition is met, at which point the Minister must issue a notifiable instrument declaring the operative date. Once that occurs, the free duty rate applies to qualifying imports meeting the application criteria. The electronic version of the Act is available on the Federal Register of Legislation.
Powers, duties and rights created
The Act creates a duty on the Minister to announce by notifiable instrument the day the Geelong Treaty enters into force for Australia, as required by section 2. This duty is mandatory if the treaty event occurs. Importers gain a right to pay a free rate of customs duty on goods that meet the description in new Schedule 4 item 58A once the schedule commences. No new discretionary powers are granted to customs officers or other officials beyond those already existing under the Customs Tariff Act 1995. The application provision in item 3 of Schedule 1 creates a clear legal entitlement for pre-commencement imports where the duty rate timing condition is satisfied. The Act does not establish any new rights of review or appeal specific to the concession. The treaty definition itself does not confer rights but serves as the trigger for the duty concession.
Money, penalties and enforcement
The Act removes the obligation to pay customs duty on goods that qualify for the free rate under new Schedule 4 item 58A, resulting in zero revenue collection for those imports once the schedule commences. No new penalties are created for misuse of the concession or failure to meet the use requirement. Existing enforcement mechanisms under the Customs Tariff Act 1995 and related customs legislation continue to apply to declarations claiming the concession. The Act contains no provisions for repayment, anti-avoidance rules or specific verification processes tied to the new item. If the treaty never enters into force, the potential revenue impact never materialises because Schedule 1 does not commence. The official materials provides no estimates of duty forgone or volume of affected goods.
Pressure points and controversies
A key policy trade-off lies in the decision to tie the commencement of the duty concession directly to the treaty entry into force rather than setting a fixed domestic date, which creates uncertainty for importers planning shipments. Another trade-off involves granting a complete free rate instead of a reduced rate, forgoing all customs revenue on qualifying goods in order to fulfil treaty obligations. The conditional commencement clause means that if the treaty does not proceed, the legislative change has no practical effect, highlighting the dependency on international processes outside Australian control. The absence of any specific end-use verification or certification requirements in the Act itself leaves open questions about how eligibility will be administered in practice under the broader customs framework. The placement of the concession in Schedule 4 rather than through a standalone exemption keeps the change within the existing tariff structure but limits visibility of the treaty-specific treatment.
What changes if it passes
Once Schedule 1 commences, importers of goods for use under the Geelong Treaty will no longer pay customs duty on those goods, altering the landed cost for treaty-related imports from the United Kingdom and other sources. The Customs Tariff Act 1995 will contain an explicit definition of the Geelong Treaty and a dedicated concessional item in Schedule 4, providing legal certainty for the zero-duty treatment. Transitional arrangements will allow certain pre-commencement imports to benefit if their duty rate timing falls after commencement. The Minister will be required to publish the treaty entry date via notifiable instrument, adding a public record of when the concession activates. No other provisions of the Customs Tariff Act 1995 are altered, and the general tariff classification and duty collection system remains unchanged for non-qualifying goods. The Act itself does not modify any other legislation or create ongoing reporting obligations.
Social post angles
Australia passes law for duty-free treaty imports: The Act adds a free rate in Schedule 4 for goods used under the Geelong nuclear submarine agreement with the UK. Treaty-linked goods enter Australia tariff free once commencement occurs: New item 58A removes customs duty for qualifying imports tied to the 2025 Geelong agreement. Conditional start date for submarine partnership concession: Duty relief begins only after the treaty enters into force and the Minister issues a notifiable instrument. No amendments needed during quick parliamentary passage: The bill moved through both houses in under a month without changes. Importers gain clarity on zero duty for AUKUS-related goods: The application rule covers goods already in the system if duty timing allows. Minister must publicly declare treaty start date: A notifiable instrument will fix the exact day the free rate applies. Customs Tariff Act gains precise Geelong Treaty definition: Subsection 3(1) now references the 26 July 2025 agreement with the United Kingdom.
An Act to amend the Customs Tariff Act 1995, and for related purposes
[Assented to 4 December 2025]
The Parliament of Australia enacts:
1 Short title
This Act is the Customs Tariff Amendment (Geelong Treaty Implementation) Act 2025.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
Sections 1 to 3 and anything in this Act not elsewhere covered by this table
The day this Act receives the Royal Assent.
4 December 2025
Schedule 1
The later of:
(a) the day after this Act receives the Royal Assent; and
(b) the day the Nuclear‑Powered Submarine Partnership and Collaboration Agreement between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland, done at Geelong on 26 July 2025, enters into force for Australia.
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur.
The Minister must announce, by notifiable instrument, the day the Agreement enters into force for Australia.
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1,Amendments
Customs Tariff Act 1995
1 Subsection 3(1)
Insert:
Geelong Treaty means the Nuclear‑Powered Submarine Partnership and Collaboration Agreement between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland done at Geelong on 26 July 2025.
Note: The treaty could in 2025 be viewed in the Australian Treaties Library on the AustLII website (https://www.austlii.edu.au).
2 Schedule 4 (after table item 58)
Insert:
58A
Goods that are for use under the Geelong Treaty
Free
3 Application provision
The amendments made by this Schedule apply in relation to:
(a) goods imported into Australia on or after the commencement of this Schedule; and
(b) goods imported into Australia before the commencement of this Schedule, where the time for working out the rate of import duty on the goods had not occurred before that commencement.