The proposed Biosecurity Response Levy is a mechanism that would allow the wool industry to cover its share of costs incurred during an eligible emergency animal disease response.As an Emergency Animal Disease Response Agreement (EADRA) signatory, the wool industry has obligations to contribute to the costs of responding to eligible emergency animal diseases. The current $5 million held in reserve by Australian Wool Innovation is not a sustainable mechanism for meeting those obligations following a major disease outbreak.A Biosecurity Response Levy mechanism would provide a clear and transparent process to cover those costs if needed in the future.The levy would be set at a rate of zero and would only be activated when required to cover the wool industry's share of response costs following an eligible emergency animal disease outbreak.If the Biosecurity Response Levy is activated, any future positive rate would be determined based on the scale of the response and developed in consultation with industry and government.

Australia's emergency animal disease response arrangements are built on industry and government working together before a disease outbreak occurs. As the wool industry's signatory to the Emergency Animal Disease Response Agreement (EADRA), WoolProducers Australia is responsible for helping ensure the industry is prepared to respond to future emergency animal disease incursions.One of the strengths of Australia's biosecurity system is that planning happens before a crisis occurs. Much of the work undertaken through Emergency Animal Disease Response Agreement (EADRA) occurs during "peacetime" to ensure arrangements are already in place should an outbreak occur.This consultation is about preparedness and ensuring the wool industry can meet its responsibilities if a major emergency animal disease outbreak occurs in the future.Consulting now allows industry to consider options and provide feedback before any future emergency animal disease incursion occurs. Establishing arrangements before they are needed reduces uncertainty and helps ensure a faster, more effective response if an outbreak occurs.WoolProducers Australia will not profit from the levy mechanism. Funds raised through the Biosecurity Response Levy are specifically for meeting industry’s cost-sharing obligations associated with an emergency animal disease response.

The wool industry currently relies on a $5 million reserve held by Australian Wool Innovation to meet its Emergency Animal Disease Response Agreement (EADRA) obligations. While this provides some level of preparedness, the reserve will not be sufficient to meet the industry's potential liability following a major emergency animal disease response.

Under the Emergency Animal Disease Response Agreement (EADRA), industry is ultimately responsible for repaying its share of eligible response costs. With the current payment arrangements, if the needed response contribution exceeds the $5 million, there may be a financial burden placed on Australian Wool Innovation to continue to fund this obligation. This could impact investment for research, development and marketing, and is what makes these arrangements unsustainable. The proposed levy would avoid this possibility.

The reserve requirement was established under a deed signed in 2001, which assigned financial responsibility for an outbreak to levy funds held by Australian Wool Innovation and required a minimum reserve of $5 million. If established, the new Biosecurity Response Levy will replace the current financial arrangement, meaning the deed and the requirement to maintain a separate reserve will no longer be necessary. These are not new or additional funds; they are levy funds paid by growers to support Australian Wool Innovation’s research and development and marketing activities. Releasing the reserve will enable these funds to be used for their intended purpose, supporting Australian Wool Innovation’s ongoing delivery of benefits to the industry.

Australian Government levy guidelines require industries proposing a new levy (or levy component) to demonstrate support from those who will be affected by it. Consultation and an industry ballot are designed to provide information, gather feedback and understand whether wool levy payers support the proposal before any recommendation is made to government.

A zero-rate levy mechanism allows the wool industry to prepare for future emergency animal disease incursions without collecting funds unless they are required. This approach provides a cost-mechanism that can be activated only if needed while avoiding ongoing costs for producers during peacetime or normal operating periods.The proposal is not about collecting additional funds today. It is about ensuring the wool industry has a fair, transparent and sustainable mechanism available to meet its responsibilities if a major emergency animal disease outbreak occurs in the future.

An emergency animal disease is a serious disease that is not currently present in Australia and could have significant impacts on livestock, producers, trade, market access and rural communities.Examples include diseases such as foot-and-mouth disease and sheep pox.WoolProducers Australia has previously highlighted analysis showing that a major foot-and-mouth disease outbreak could have substantial impacts on the Australian wool industry.

The Emergency Animal Disease Response Agreement (EADRA) is a national agreement between governments and livestock industries that sets out how Australia prepares for and responds to emergency animal diseases. It outlines roles, responsibilities and cost-sharing arrangements, ensuring industry has a voice in decision-making and response activities.EADRA provides greater certainty, shared responsibility and a coordinated approach to responding to disease outbreaks that could impact producers, markets, trade and regional communities.For diseases covered by the EADRA, governments can (on request) fund the industry share of costs of an approved response upfront to ensure action can be taken quickly and effectively. Under these national cost-sharing arrangements, the wool industry is then required to pay back its agreed share of response costs. Establishing a response levy that is activated if an emergency animal disease outbreak occurs ensures the industry can repay its share of response costs over time. Without such a mechanism, the industry may face more challenging options for meeting its financial obligations within the EADRA.

Under the Emergency Animal Disease Response Agreement (EADRA), the costs of responding to an emergency animal disease outbreak are shared between governments and affected livestock industries. The proportion each party contributes depends on the disease category.Disease categoryImpactGov shareIndustry share1Primarily affects public health or the environment with negligible direct impact on commercial livestock production10002Major public health or wide national/public welfare impact, alongside low-to-moderate industry impact (e.g., foot-and-mouth disease)80203Significant shared impact across both public/national interest and specific livestock industries50504Primarily affects the commercial viability and trade of specific livestock industries rather than wider public health or public infrastructure2080The government share is always split into 50% paid by the Commonwealth and 50% paid by the jurisdictions. The spilt between the jurisdictions is pro-rated based on livestock population and value.The industry share is generally initially underwritten by the Commonwealth as a loan so the response can start immediately, and the affected industries repay this loan over time (up to 10 years).

Under the Emergency Animal Disease Response Agreement (EADRA), industry contributions are generally allocated among affected industries based on their relative Gross Value of Production (GVP), which is a measure of the annual value of that industry's production.To provide a guide on financial implications of an emergency disease outbreak, the EADRA defines the Agreed Limit as the approved cost-sharing ceiling for a response. If response costs are expected to exceed the Agreed Limit, the situation must be reviewed by the body responsible for strategic and financial decisions during a response. This body is called the National Management Group (NMG) and comprises senior officials of all governments and affected Industry Parties cost-sharing the national response. The NMG would decide whether to increase the Agreed Limit, modify the response, cease the response or transition to long-term disease control outside the EADRA. All EADRA parties, including governments and affected industries (via their representation on the NMG), must agree before the limit can be increased and additional expenditure can be cost-shared. Importantly, this means WoolProducers Australia would retain a role in decisions about any further spending beyond that level.   For most emergency animal diseases, the default Agreed Limit is calculated as 1% of the combined GVP of the affected industries. For foot-and-mouth disease, which has the potential for much larger response costs, the Agreed Limit is 2% of the combined GVP. Example: If the combined GVP of livestock industries affected by an eligible disease outbreak was $5 billion, the Agreed Limit for cost-sharing, for most emergency animal diseases, would be $50 million (1% of GVP). If response costs were expected to exceed that amount, further cost-shared spending would require agreement from all affected EADRA parties before it could proceed. This illustrates the scale of potential financial exposure for all affected parties including livestock industries and governments; it is not an estimate of the wool industry’s future liability or levy rate.The proposed Biosecurity Response Levy would only be set at a rate that would cover the wool industry’s share of the response costs. Based on some initial economic analysis, the Biosecurity Response Levy would be expected to be significantly lower than the existing wool levy, although it will depend on the size of the outbreak and required response.In the event of some emergency animal disease incursions, the wool export market may experience significant disruption. This means the Biosecurity Response Levy will not immediately begin to cover costs and will only do so when export markets reopen.

Emergency animal diseases can have significant impacts on producers, livestock industries, markets and trade. Having appropriate arrangements in place before an outbreak occurs helps ensure the industry can respond quickly, meet its responsibilities and minimise long-term impacts. This proposal is about strengthening preparedness and providing greater certainty for the future.

No. The proposal is not to collect additional funds today. It is to establish a mechanism that could be activated in the future if required following an eligible emergency animal disease response. The proposed levy would otherwise remain at zero.

If the proposed biosecurity response levy is supported by wool growers and subsequently implemented by the Australian Government, it would be incorporated as a separate component of the existing wool levy under Division 18 of the Primary Industries (Excise) Levies Regulations 2024. It would not change the existing 1.5% general component of the wool levy, which funds Australian Wool Innovation.If activated, the levy would be collected through the existing wool levy collection arrangements at the same time as the current 1.5% general levy component collected for Australian Wool Innovation.  The Australian Government would then allocate the amounts collected to their respective purposed – the existing 1.5% research and marketing component would be provided to Australian Wool Innovation, and the Biosecurity Response Levy component would be directed to the relevant biosecurity arrangements.

The existing wool levy collection system is already established in legislation and is used by industry and government.Incorporating the Biosecurity Response Levy into the current framework:reduces administrative complexityavoids the need to create a separate collection mechanismminimises collection costsprovides an efficient way to distribute levy funds to the appropriate recipient organisations.

No. The proposed Biosecurity Response Levy would not change the existing 1.5% general component of the wool levy, which funds Australian Wool Innovation.The current wool levy arrangements would remain in place. The proposed Biosecurity Response Levy would be a separate component within the existing wool levy structure and would be applied only if required to cover the wool industry's share of costs associated with responding to an emergency animal disease.

No. The proposed levy is intended as a mechanism to allow the wool industry to cover its share of eligible emergency animal disease response costs under the Emergency Animal Disease Response Agreement (EADRA).The proposed levy rate would be set at zero unless activated following an emergency animal disease response requiring costs to be recovered. If activated, the levy would only operate at the rate necessary to cover the industry's agreed contribution.

The Department of Agriculture, Fisheries and Forestry has advised that incorporating the Biosecurity Response Levy into the existing wool levy framework is the most practical and efficient approach.Using the existing legislative and collection arrangements avoids unnecessary complexity for growers, levy collection agents and government while ensuring the industry has a mechanism in place to meet its Emergency Animal Disease Response Agreement (EADRA) obligations if required.

Activation would only occur following an approved emergency animal disease response that results in costs being allocated to the wool industry under established national arrangements.The levy cannot be activated simply at the discretion of an individual organisation or government.

Initially, the levy would be set at a rate of zero and would only be activated if required to cover the wool industry's share of response costs following an eligible emergency animal disease outbreak.Based on some initial economic analysis, the Biosecurity Response Levy would be expected to be significantly lower than the existing wool levy, although it will depend on the size of the outbreak and required response.If the levy was required to be activated, it would be increased to a positive rate following an outbreak. The rate would be:determined by the size, scale and cost of the responseset at a level sufficient to meet the wool industry's cost-sharing or repayment obligationsdeveloped in consultation with wool growers, Animal Health Australia and the Department of Agriculture, Fisheries and Forestrydesigned to be equitable and affordable for levy payersaligned with existing wool levy collection arrangements.Further details on any future levy rate would be communicated should activation ever be required

The proposed levy would be established at a zero rate and remain at zero unless an eligible emergency animal disease response created a cost-sharing obligation for the wool industry.If activation was required, the rate would be determined based on the size and cost of the response, consultation with industry and relevant government agencies, and the need to repay costs within an appropriate timeframe.The following process would apply to change the Biosecurity Response Levy from a zero-rate to a positive rate:Notification: Following confirmation of a relevant emergency animal disease incursion, WoolProducers Australia will notify levy payers that they intend to ask the minister to activate the Biosecurity Response Levy. In this notification, WoolProducers Australia will tell wool levy payers why the response levy is required to be activated and what rate is proposed.Request to the minister: WoolProducers Australia writes to the minister with the request to activate the levy.Objection period: WoolProducers Australia holds an objection period of at least 30 calendar days, so levy payers can consider the proposed rate.Levy changes are made in legislation. If the change is approved, putting the change into regulations will take around six months after WoolProducers Australia’s request to the minister.Return to zero: The same process would apply at the point that WoolProducers Australia wants to reset the levy to zero. By undertaking consultation now to establish the response levy mechanism, WoolProducers Australia can streamline the process if the levy needs to be activated in response to an emergency animal disease outbreak. Rather than undertaking a full consultation process at that time, the much shorter notification and objection period outlined above would apply.

If activated, the levy would be collected through existing levy collection arrangements at the point of sale, similar to how the existing wool levy for research and development is collected. This approach avoids the need to establish a separate collection system and minimises administrative burden for producers.

In the event the levy is activated during an eligible emergency animal disease response, funds raised through the levy would be used specifically to repay the wool industry's share of agreed emergency animal disease response costs. Eligible costs that may be cost-shared in an emergency animal disease response include:salaries and wages for additional staff directly involved in the response or backfilling essential roles, and overtime for existing staff working in the responseoperating expenses such as laboratory testing, logistics, and field operationsessential equipment required for the immediate needs of the responsecompensation for livestock or property destroyed or lost due to the disease, as defined under jurisdictional legislation. The levy is not intended to fund ongoing industry programs, research or administration unrelated to an approved disease response.

The wool and sheepmeat industries have separate obligations under the Emergency Animal Disease Response Agreement (EADRA) and are responsible for repaying their own shares of response costs.If a zero-rate wool levy were established and later activated, producers would not be required to pay two response levies on the same transaction.The sheepmeat emergency animal disease levy and any activated wool response levy would apply only to their respective industries and purposes. If both levies were activated, you would only pay the levy that applies to the commodity being sold. For producers selling both sheepmeat and wool, the relevant levy arrangements would apply separately to each commodity.Further information on how this would interact with existing levy arrangements will be provided during consultation.

Yes. Almost all livestock industries that are signatories to Emergency Animal Disease Response Agreement (EADRA) already have similar mechanisms in place to cover emergency animal disease response costs if required.

Creating and maintaining a large industry reserve fund would require collecting additional money from producers in advance, regardless of whether an emergency animal disease outbreak occurs.A response levy provides a mechanism to cover costs only if and when they arise.

Yes. Consultation with producers and industry stakeholders is a key part of the process. Webinars, engagement activities and an industry ballot will all help inform whether the proposal progresses.

All wool levy payers will be able to indicate whether the levy mechanism should be established.Details regarding eligibility, voting arrangements and timing will be provided separately as part of the ballot process.It is important to note that the ballot will not directly establish the levy. Rather, it will determine whether a recommendation is made to the Australian Government to establish the levy mechanism.

No exemptions are currently proposed. Biosecurity is a shared responsibility across the wool industry, so if the Biosecurity Response Levy were activated at a positive rate following an eligible emergency animal disease response, all wool growers would be expected to contribute through the levy mechanism.

Consultation on the proposed levy will run from October 2026 to February 2027, culminating in an industry ballot. During this period, wool producers and other industry stakeholders will have multiple opportunities to learn about the proposal, ask questions, provide feedback and access information to help them make an informed decision. To get involved, wool growers and industry stakeholders: Attend one of the information webinars (see further up on this webpage for links to register)Review the Discussion Paper, economic analysis and FAQs (these can be found at the bottom of this page). Provide feedback or questions during the consultation period to brlevy@woolproducers.com.au.   Participate in the industry ballot if you are an eligible wool levy payer.

WoolProducers Australia will use the wool levy database, which contains approximately 90,000 wool growers, to distribute consultation information. MUFG currently manages the database and will distribute communications to all levy payers on WoolProducers Australia’s behalf.Wool growers with a registered email address will receive information via email, while those without an email address will receive a single postcard by mail directing them to the consultation materials.Information will also be shared via WoolProducers Australia’s website and social media channels, and webinars will be held allowing wool growers to find out more information and ask questions.

WoolProducers Australia is encouraging wool levy payers and other industry stakeholders to participate throughout the consultation process.Key dates are:Consultation opens: 5 October 2026Information webinar 1: 12 October 2026Information webinar 2: 4 November 2026Information webinar 3: 3 December 2026Consultation closes: 21 February 2027Industry ballot opens: 22 February 2027Industry ballot closes: 26 March 2027

The industry ballot will be independently managed by MUFG, the manager of the wool levy database.MUFG will oversee the voting process and provide the ballot results to WoolProducers Australia. No personal levy payer information will be shared with WoolProducers Australia.

If the proposal receives industry support, WoolProducers Australia will submit a recommendation to the minister seeking implementation of the Biosecurity Response Levy by the Australian Government. A 30-day objection period would then be held, allowing stakeholders an opportunity to raise any concerns. Following the objection period, WoolProducers Australia would provide the minister with a summary of the outcomes and, if appropriate, recommend that the proposal proceed to implementation.

Industry feedback and ballot results will help determine whether the proposal progresses. If sufficient support is not demonstrated through the consultation and ballot process the Biosecurity Response Levy will not be established and the wool industry will not have a mechanism to meet cost sharing obligations in the event of an emergency animal disease incursion.More importantly, the current arrangements place the onus on Australian Wool Innovation to fund the industry contribution through the reserve and possibly beyond. A key objective of the proposed levy is to ensure that the industry contribution to a response affecting the wool industry is funded through a means specifically set aside for biosecurity purposes and does not impact funding for industry research, development and marketing.