Now lawDefence & Security Introduced in the House of Representatives, 30 Oct 2025

Goods for the UK submarine deal now pay no import tax

Australia and the United Kingdom signed a deal in Geelong to work together on nuclear-powered submarines. This law keeps Australia's promise not to tax goods brought in for that work.

Official name: Customs Tariff Amendment (Geelong Treaty Implementation) Bill 2025

Who it affects

• Groups bringing in goods for the submarine work: They pay no import tax on goods that are for use under the Geelong Treaty.
• People with goods already sitting in a warehouse: They can still pay zero if border officers had not yet worked out the tax when the law started.

Geelong Treaty promises no taxes

On 26 July 2025, Australia and the United Kingdom signed a treaty in Geelong, Victoria. A treaty is a formal written deal between countries.

Its full name is the Nuclear-Powered Submarine Partnership and Collaboration Agreement. People call it the Geelong Treaty.

One part of the treaty, called Article XXI (Article 21), is about taxes. Both countries promise not to tax goods moved in or out for the treaty work. That covers import taxes, taxes on goods made at home, sales taxes and similar charges. If a country does charge them, it has to pay the charges itself.

An import tax is a tax on goods coming into a country. Australia's import taxes are set by the Customs Tariff Act 1995. This law changes that Act so Australia keeps its side of the deal.

Zero tax for treaty goods

The law adds the Geelong Treaty to the list of terms the Act explains. It then adds a new line, called item 58A, to a list of special lower tax rates. That list covers certain kinds of goods.

Item 58A sets the import tax to Free, which means zero. This applies to goods that are for use under the Geelong Treaty.

The government chose the words for use under on purpose. It says the treaty was never meant to make anything with a loose link to it tax-free. People could take advantage of that. So goods must really be used for the treaty work to pay zero.

Goods waiting at the border

The zero rate applies to goods brought in on or after the day the law starts.

It also covers goods that came earlier but were still sitting in a depot or warehouse. If border officers had not yet worked out the tax on them by the start day, they pay zero too.

Say a part for the submarine work lands in Australia a week before the start day. It sits in a warehouse until after the start day. When it is let through, no import tax is paid on it.

Start date

The tax change starts on the later of two days. One is the day after the law was signed. The other is the day the Geelong Treaty takes effect for Australia. If the treaty never takes effect, the change never starts.

The treaty takes effect when both countries swap formal notes saying they are ready. The minister in charge must tell the public that date.

The bill was brought into the House of Representatives on 30 October 2025. It passed there on 5 November. The Senate, Parliament's second house, passed it on 27 November 2025.

The Governor-General, who stands in for the King, signed it into law on 4 December 2025. It became Act No. 78 of 2025.

Its journey through Parliament

Official sources

• Bill page on aph.gov.au
• Text of the bill
• Explanatory memorandum

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