Changes to 'Australian Made' eligibility criteria

New criteria for country of origin claims became law in February this year. The amendments to the Australian Consumer Law were intended to complement the new food labelling system which was introduced in July 2016 but they apply to all products, food and non-food.

Previously, for a product to be labelled “Made in Australia”, at least 50% of the cost of production must have been incurred in Australia and the product must have been substantially transformed here.

The 50% cost of production test has been removed and substantial transformation is now the sole criterion. This means that some products which previously did not qualify (because they didn’t meet the 50% test) may now be able to make a “Made in Australia” claim.

The definition of 'substantial transformation' has also been revised. The previous definition of ‘substantial transformation’ was:

Goods are substantially transformed in a country if they undergo a fundamental change inform, appearance or nature such that goods existing after the change are new and different goods from those existing before the change.

The revised definition is:

Goods are substantially transformed in a country if … as a result of one or more processes undertaken in that country, the goods are fundamentally different in identity, nature or essential character from all of their ingredients or components that were imported into that country.

This new definition may have implications for some products which carry the AMAG logo, particularly in the complementary medicines sector. Australian Made Campaign is currently working with the ACCC to clarify exactly how the change will impact licensees and we will be contacting affected licensees when more detailed information is to hand.

AMCL has prepared changes to its Code of Practice to ensure that it is consistent with the law. We are currently waiting for the changes to be approved by the ACCC and will advise licensees when this happens.

If you have any questions about the new provisions, please email compliance@australianmade.com.au.