Agriculture Department Rules Out Biosecurity Fee Refunds

The department will retain a $26 million surplus after audits revealed issues with its cost-recovery model.

Updated on Oct. 28, 2026 in International Trade

Isometric editorial illustration of a single industrial shipping container on a concrete platform, representing government biosecurity fee reserves. — The Department of Agriculture, Fisheries and Forestry will retain a $26 million surplus following audits that identified flaws in its cost-recovery model. AI Illustration. Upload story photo >

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Should government agencies be required to return surplus revenue collected from business service fees?

The Department of Agriculture, Fisheries and Forestry has confirmed it will not provide refunds to businesses following the collection of a $26 million biosecurity fee surplus. Officials attribute the excess revenue to difficulties in accurately projecting annual import volumes.

Why it matters

The Australian National Audit Office found the department failed to demonstrate that charges reflected minimum efficient service costs, prompting concerns over fiscal transparency. Currently, no provision exists within the federal charging framework to return excess funds to importers.

The department recorded $466 million in total biosecurity revenue against $453 million in expenditure for the 2025-26 financial year. This follows a previous year where total biosecurity revenue reached $428 million.

The players

Department of Agriculture, Fisheries and Forestry

This Australian government agency is responsible for national biosecurity, industry regulation, and agricultural policy.

Victoria Anderson

She serves as the secretary of the Department of Agriculture, Fisheries and Forestry and oversees its financial and regulatory operations.

Australian National Audit Office

This independent agency provides assurance to the Australian Parliament on the accountability and performance of the public sector.

The details

The Australian National Audit Office audit highlighted that 34 percent of prices established in 2023-24 lacked direct backing from the official charging model. While the department has agreed in principle to all six audit recommendations, it maintains that its current cash reserve policy necessitates retaining the surplus.

34 percent of biosecurity prices were established during the 2023-24 period.
The department completed three internal cost recovery reviews throughout 2024.
The total biosecurity revenue for the 2024-25 financial year reached $428 million.
New export regulatory cost recovery arrangements were introduced on 1 July 2026.
Department officials testified regarding the audit at a Senate estimates hearing in October 2026.

Market Landscape

This dispute highlights ongoing challenges in aligning government cost-recovery models with the Australian government's Cost Recovery Guidelines. It underscores the broader tension between administrative agencies aiming for financial buffers and industry stakeholders demanding fiscal precision.

Importers face continued uncertainty regarding the accuracy of regulatory fees after the department confirmed that no mechanism exists for issuing refunds. Businesses must prepare for potential adjustments as the agency attempts to refine its volume projections and pricing models.

The takeaway

Transparency remains a critical issue for businesses operating under government-regulated cost-recovery schemes. Importers should monitor future departmental pricing reviews closely to understand how their regulatory costs are calculated.