Update on country of origin safe harbours

The Competition and Consumer Amendment (Country of Origin) Bill 2016 has now passed through Parliament. 

The Bill amends the country of origin safe harbours in relation to the 50% production cost test, which has now been removed.

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 it must have been substantially transformed here.

Substantial transformation is now the sole criterion. 

The definition of “substantial transformation” was also altered to make it clear that minor processes such as dicing or canning don’t count.

The Bill is expected to become law in the next few weeks after it receives Royal Assent.

The latest changes complement the new food labelling system which was introduced in July last year and aim to show consumers the percentage of a product’s ingredients grown, produced or packed in Australia. There is a two year transition period for companies to adopt the new labels, which will become compulsory in July 2018.