EXPLANATORY STATEMENT
Issued by the authority of the Minister for Agriculture, Fisheries and Forestry
Export Control Act 2020
Export Control (Transition Assistance—Phase Out of Live Sheep Exports by Sea Programs) Amendment (2026 Measures No. 1) Instrument 2026
Legislative Authority
The Export Control (Transition Assistance—Phase Out of Live Sheep Exports by Sea Programs) Amendment (2026 Measures No. 1) Instrument 2026 (the Amendment Instrument) is made under section 424E of the Export Control Act 2020 (the Act).
The Act prohibits the export of live sheep by sea from Australia from 1 May 2028 and provides authority for Commonwealth spending activities related to preparing for, or adapting or responding to, the phasing out of export of live sheep by sea.
Section 424E of the Act enables the Minister to prescribe, by disallowable legislative instrument, one or more programs in relation to preparing for, or adapting or responding to, the phasing out of the export of live sheep by sea, including in relation to the expenditure of Commonwealth money under such programs.
Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend or vary any such instrument.
Purpose
The purpose of the Amendment Instrument is to amend the Export Control (Transition Assistance—Phase Out of Live Sheep Exports by Sea Programs) Instrument 2025 (the Principal Instrument) to prescribe two additional programs to assist industry to prepare for, or adapt or respond to, the phasing out of the export of live sheep by sea. The two additional programs are the Supporting Supply Chain Partnerships Program and the Better Use of Market Information Program (the Programs).
The Programs provide $2.0 million over two years from 2025-26 in grant funding as part of the Australian Government’s commitment to assist industry in preparing for, adapting to and responding to the phasing out of the export of live sheep by sea (the Transition Assistance Package).
- The Supporting Supply Chain Partnerships Program provides grant funding of $0.75 million to over two years from 2025-26 to the Grower Group Alliance (Inc).
- The Better Use of Market Information Program provides grant funding of $1.25 million over two years from 2025-26 to Meat and Livestock Australia Limited.
The funding for the Programs has been secured through the Department of Agriculture, Fisheries and Forestry (the Department) in the 2024-25 Budget.
Funding authorised by the Amendment Instrument for the Programs, as part of the Transition Assistance Package, is derived from Program 1.9 Meat and Livestock Industry, Outcome 1, as set out in the Portfolio Budget Statements 2024-25, Budget Related Paper No. 1.1, Agriculture, Fisheries and Forestry Portfolio Budget Statements 2024-25 at page 34 (https://www.agriculture.gov.au/sites/default/files/documents/2024-25-DAFF-PBS.pdf) and the Portfolio Additional Estimates Statement 2025-26, Budget Related Paper No 2. Agriculture, Fisheries and Forestry at page 18 (https://www.agriculture.gov.au/sites/default/files/documents/2025-26-daff-paes).
Supporting Supply Chain Partnerships Program
The purpose of the Supporting Supply Chain Partnerships Program is to provide funding to enable sheep producers and sheep processors who are, are likely to be, or will be negatively affected by the phasing out of the export of live sheep by sea to access education and training on risk management tools and financial literacy, including forward contracts. This will support sheep producers and sheep processors to respond to the phase out of live sheep exports by improving price discovery, strengthening financial risk management, and increasing commercial certainty through the adoption of appropriate risk management tools.
Better Use of Market Information Program
The purpose of the Better Use of Market Information Program is to provide funding to Meat and Livestock Australia Limited to undertake activities that promote improvements in information flow between sheep producers and sheep processors who are, are likely to be, or will be negatively affected by the phasing out of the export of live sheep by sea. This will support sheep producers and sheep processors to respond to the phase out of live sheep exports by promoting increased transparency, and enhanced product quality and pricing outcomes through better market information flows.
Program details and operation
Subsection 424F(1) of the Act allows the Minister to make, vary or administer arrangements in relation to the carrying out of activities by a person under a program prescribed by legislative instrument under subsection 424E(1). Arrangements may include contracts, agreements, deeds or understandings, and may provide for money to be payable by the Commonwealth to a person under the program.
The Programs are grants programs, which will be administered by the Department and the Community Grants Hub. The Programs will be administered in accordance with the requirements of the Commonwealth resource management framework, including the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Grants Rules and Principles 2024 (CGRPs), available at: https://www.finance.gov.au/government/procurement/commonwealth-procurement-rules).
Grower Group Alliance (Inc) (ABN 65 816 357 099) will be the recipient of the funding under the Supporting Supply Chain Partnerships Program. Grower Group Alliance (Inc) is a not-for-profit organisation that was established in 2002 to build the capacity of grower groups and strengthen connections between Western Australian grower groups, researchers, funding bodies and industry. Grower Group Alliance (Inc) were identified as having the right expertise to deliver the Supporting Supply Chain Partnerships Program.
Meat and Livestock Australia Limited (ABN 39 081 678 364) will be the recipient of the funding under the Better Use of Market Information Program. Meat and Livestock Australia Limited is a public company, limited by guarantee, that invests in research and marketing activities for the Australian red meat and livestock industry. Meat and Livestock Australia Limited were identified as having the right expertise to deliver the Better Use of Market Information Program.
Spending decisions for the Programs will be made by the Minister for Agriculture, Fisheries and Forestry or the Program Delegate, against the Program Guidelines, taking into account the recommendations of an assessment by Departmental officers. The power conferred on the Minister by subsection 424F(1) of the Act may be delegated to the Secretary, an SES employee, or acting SES employee, in the Department or in a Department of State of the Commonwealth other than the Department (under section 424H). Any delegate will have relevant expertise in, and understanding of, the Programs forming part of the Transition Assistance Package to assist industry in preparing for, adapting to and responding to, the phasing out of the export of live sheep by sea and will be able to perform relevant functions in accordance with the Commonwealth resource framework.
Spending decisions made in connection with the Programs are not subject to independent merits review, as they are decisions relating to the allocation of a finite resource, from which all potential claims for a share of the resource cannot be met. In addition, any funding that has already been allocated would be affected if the original decision was overturned. The Administrative Review Council has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 4.11 to 4.19 of the What decisions should be subject to merits review? publication).
Persons who are otherwise affected by decisions or who have concerns about the Programs will be able to provide feedback to the Department. The Department investigates any complaints in accordance with its complaints policy and procedures. If a person is not satisfied with the way the Department handles the complaint in relation to the Programs, they may lodge a complaint with the Commonwealth Ombudsman.
Statement of the Relevance and Operation of Constitutional Heads of Power
For the purposes of subsection 424E(3) of the Act, the Amendment Instrument specifies that the legislative power in respect of which it is made is the trade and commerce power in section 51(i) of the Constitution.
Section 51(i) of the Constitution empowers the Parliament to make laws with respect to ‘trade and commerce with other countries, and among the States’.
The Programs will assist sheep producers and sheep processors to prepare for and mitigate the impacts of the prohibition of live sheep exports by sea, which will come into effect from 1 May 2028.
Consultation
In February 2025, the Department undertook a co-design process with Western Australian sheep producers, sheep processors and the broader supply chain. Based on the input of more than 300 people across the industry supply chain through 16 workshops in Western Australia, the co-design process identified and prioritised areas where assistance will make the most difference.
The Department consulted with industry groups and Research and Development Corporations (RDCs) ahead of the co-design process to identify suitable participants for the workshops. These industry groups and RDCs included: the Australian Meat Industry Council; Australian Veterinary Association; Grain Producers Australia; Meat and Livestock Australia; National Farmers’ Federation; Sheep Producers Australia; Stud Merino Breeders Association of WA; WA Farmers Federation; WA Livestock Research Council; WA Rural Health; WA Shearing Industry Association; and Wool Producers Australia.
Co-design participants represented producers, farming organisations, livestock transport operators, cartage/ship loaders, consultants, advisors, rural financial counselling, shearers, feed suppliers, processor/exporters, veterinarians and research organisations.
The Department has consulted with: the Department of Health, Disability and Ageing; the Department of Foreign Affairs and Trade; the Department of Home Affairs; the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts; the Department of Industry, Science and Resources; the Department of Employment and Workplace Relations; the Department of the Prime Minister and Cabinet; the Treasury; the Department of Finance; the Australian Maritime Safety Authority; Austrade; the Australian Competition and Consumer Commission; the National Indigenous Australians Agency; and the Western Australian Department Primary Industries and Regional Development.
Stakeholder feedback informed how best to allocate funding for the Programs, which are prescribed by the Amendment Instrument.
In accordance with section 17 of the Legislation Act 2003, the Attorney-General’s Department has been consulted on the development of the Amendment Instrument.
Details and Operation
The Amendment Rules are a legislative instrument for the purposes of the Legislation Act 2003.
The Amendment Rules commence the day after registration.
Details of the Amendment Instrument are set out in Attachment A.
Other
The Amendment Instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.
ATTACHMENT A
Details of the Export Control (Transition Assistance—Phase Out of Live Sheep Exports by Sea Programs) Amendment (2026 Measures No. 1) Instrument 2026
Section 1 – Name
This section specifies the name of the instrument as the Export Control (Transition Assistance—Phase Out of Live Sheep Exports by Sea Programs) Amendment (2026 Measures No. 1) Instrument 2026.
Section 2 – Commencement
This section provides that the Amendment Instrument commences on the day after registration on the Federal Register of Legislation.
Section 3 – Authority
This section specifies the provision of the Export Control Act 2020 (the Act) under which the Amendment Instrument is made.
Section 4 – Schedules
This section provides that each instrument that is specified in a Schedule to the Amendment Instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1 – Amendments
Export Control (Transition Assistance – Phase Out of Live Sheep Exports by Sea Programs) Instrument 2025
Item 1 – Section 5 (at the end of the table)
This item adds two new items at the end of the table in section 5 of the Principal Instrument. These new items relate to two new programs, which are prescribed for the purposes of section 424E of the Act.
Table item 5 prescribes the Supporting Supply Chain Partnerships Program.
Column 2 of that item sets out the description of this program. The program will provide funding to Grower Group Alliance (Inc) (ABN 65 816 357 099) to enable sheep producers and sheep processors who are, are likely to be, or will be negatively affected by the phasing out of the export of live sheep by sea to access education and training on risk‑management tools and financial literacy, including the use of forward contracts.
Column 3 of that item sets out the purpose of the program. The purpose of the program is to support sheep producers and sheep processors to respond to the phasing out of live sheep exports by sea by improving price discovery, strengthening financial risk management, and increasing commercial certainty through the adoption of appropriate risk‑management tools.
Table item 6 prescribes the Better Use of Market Information Program.
Column 2 of that item sets out the description of this program. The program will provide funding to Meat and Livestock Australia Limited (ABN 39 081 678 364) to undertake activities that promote improvements in information flow between sheep producers and sheep processors who are, are likely to be, or will be negatively affected by the phasing out of the export of live sheep by sea.
Column 3 of that item sets out the purpose of the program. The purpose of the program is to support sheep producers and sheep processors to respond to the phasing out of the export of live sheep by sea by promoting increased transparency and enhancing product quality and pricing outcomes through better market information flows.
Item 2 – Section 6
This item repeals section 6 of the Principal Instrument, and substitutes a new section and table that provides, for the purposes of subsection 424E(3) of the Act, the legislative power or powers of the Parliament for each program mentioned in column 2 is specified in respect of the program mentioned in column 1 of the table. This is intended to clarify the specified legislative powers for each program, for the avoidance of doubt.
Column 1 of that item sets of the name of the program.
Column 2 of that item specifies the legislative power or powers of the Parliament for the relevant program.
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Export Control (Transition Assistance—Phase Out of Live Sheep Exports by Sea Programs) Amendment (2026 Measures No. 1) Instrument 2026
This disallowable legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Export Control (Transition Assistance—Phase Out of Live Sheep Exports by Sea Programs) Amendment (2026 Measures No. 1) Instrument 2026 (the Amendment Instrument) is made under section 424E of the Export Control Act 2020. The Amendment Instrument prescribes two programs: the Supporting Supply Chain Partnerships Program and the Better Use of Market Information Program (the Programs).
The Programs provide grant funding as part of the Australian Government’s Transition Assistance Package to assist industry in preparing for, adapting to and responding to the phasing out of the export of live sheep by sea, and provide funding for activities to support businesses to manage this transition.
The Supporting Supply Chain Partnerships Program provides grant funding of $0.75 million over two years from 2025-26 to Grower Group Alliance (Inc) to enable sheep producers and sheep processors who are, are likely to be, or will be negatively affected by the phasing out of the export of live sheep by sea to access education and training on risk management tools and financial literacy, including forward contracts. This will support sheep producers and sheep processors to respond to the phase out of live sheep exports by improving price discovery, strengthening financial risk management, and increasing commercial certainty through the adoption of appropriate risk management tools.
The Better Use of Market Information Program provides grant funding of $1.25 million over two years from 2025-26 to Meat and Livestock Australia to undertake activities that promote improvements in information flow between sheep producers and sheep processors who are, are likely to be, or will be negatively affected by the phasing out of the export of live sheep by sea. This will support sheep producers and sheep processors to respond to the phase out of live sheep exports by promoting increased transparency, and enhanced product quality and pricing outcomes through better market information flows.
Human rights implications
This disallowable legislative instrument engages the right to work in Article 6(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR).
Article 6(1) of the ICESCR recognises the right to work, which includes the right of everyone to the opportunity to gain their living by work which they freely chose or accept.
The Programs engage and promote the right to work insofar as the Programs support sheep producers and sheep processors whose employment may be, is likely to be, or will be affected by the phasing out of live sheep exports by sea. Specifically, the Programs support sheep producers and sheep processors to access education and training on risk management tools and financial literacy, and by promoting increased transparency, and enhanced product quality and pricing outcomes through better market information flows.
Conclusion
This disallowable legislative instrument is compatible with human rights as it positively impacts human rights issues.
The Hon Julie Collins MP
Minister for Agriculture, Fisheries and Forestry