Supporting a strong and sustainable agvet chemical regulator

Farmers, manufacturers and the community will continue to benefit from safe agricultural and veterinary chemicals, thanks to $8.7 million in new funding from the Albanese Government for the operations of the Australian Pesticides and Veterinary Medicines Authority (APVMA).

This additional funding will maintain the APVMA’s capability to assess, regulate and monitor chemicals critical to Australia’s agricultural productivity, while protecting the environment, public and animal health.

The investment will support the APVMA through the 2026–27 financial year while the authority works with industry stakeholders on implementation of a new sustainable funding policy.

The government has agreed to a new sustainable funding policy from the 2027-28 financial year that is simpler, fairer and more transparent.

Under the new policy, applicants seeking to register chemical products in Australia, like pesticides or new veterinary medicines, will pay the full cost of the APVMA’s fee-for-service activities upfront, so costs are recovered directly.

The increase in upfront fees will be offset by the 40 percent decrease in the sales levies applied to the sale of agricultural and veterinary chemical products.

This means all applicants pay a fair price to enter the market, and products sold in Australia pay a fair levy to support our domestic regulatory system.

Previously, thousands of products were registered under discounted fees and not sold in Australia. This resulted in application costs being subsidised by companies selling products in Australia for Australian farmers.  

The government will also contribute $3.2 million annually for the APVMA’s permit programs which enable products to enter the Australian market that are required for emergency responses or to support small, emerging industries.

The new funding arrangements are expected to commence from 1 July 2027, after the APVMA undertakes consultation on implementation with stakeholders across the agvet sector.

Consultation with industry is scheduled to begin later this year, through the APVMA’s Cost Recovery Implementation Statement (CRIS), which will set out the proposed changes to specific fees and levies.

The bridging funding for 2026-27 and the implementation of the new sustainable funding policy in 2027 will ensure the APVMA is appropriately resourced to carry out its responsibilities, including pre-market assessment, registration and compliance.

It will also ensure Australia’s world-class, science-based regulatory system for agricultural and veterinary chemicals can continue to support farmers, regional communities and Australia’s food system.

Quotes attributable to the Assistant Minister for Agriculture, Fisheries and Forestry, Senator Anthony Chisholm:

“The Albanese Government is delivering on our reform agenda and responding to multiple reviews, including the Governments detailed response released in November 2024, that showed the APVMA’s funding arrangements were not fit for purpose.

“This additional funding will ensure Australia’s agriculture and veterinary chemical regulator remains strong and provides support for farmers and the wider community.

“The APVMA plays a vital role in giving farmers access to the tools they need to remain productive and competitive, while ensuring chemicals are used safely and responsibly.

“The Albanese Government is working to deliver a simpler, fairer and more transparent sustainable funding model that will ensure the regulator continues to be properly resourced now and into the future.”