Made in Australia is an ambiguous term. Many people shop and look for that label to indicate that the money they are spending is going towards local suppliers so the local economy grows, jobs are created here and we all reap the benefits those things bring. But the rules around what gets the "Made in Australia" label allow quite a bit of wiggle room.
What Does 'Made In Australia' Mean?
The Australian Consumer Law (ACL) sets out the rules for whether the assertion that a product is "Made in Australia" can be made. Those rules (which are covered in Part 5-3 of the ACL as well as references in 18, 29(1)(a)(k) and 151(1)(a)(k)) say that product bearing the "Made in Australia" label must meet these general requirements.
- the goods must have been substantially transformed in Australia
- 50% or more of the total cost of producing or manufacturing the goods occurred in Australia, and conform to the calculations under in Section 256 of the ACL
- Australia was the country of origin for each significant ingredient or component
- all, or virtually all, of the processes involved with production or manufacturing happened in Australia.
What About 'Product Of Australia'?
The "Product of Australia" tag sets a higher bar for manufacturers. In order to use this label and not risk the wrath of regulators, someone using the ‘Product of Australia’ label on goods or products must be able to prove that all the significant ingredients or components come from Australia.
So, "Made in Australia" has a 50% requirement while "Product of Australia" is much higher.
Most of us will have seen the green triangle with the gold kangaroo motif. The logo specifies products that have been registered with the Australian Made Campaign and have met the ACL criteria and a code of practice for use of the logo.
There's a financial cost to being allowed to use that label. That means the likelihood of the product being compliant under the ACL is higher.
Does It Matter?
There's been lots of research that supports the hypothesis that buying Australian made products is important to us. A recent article points to nine out of ten people saying they would be more likely to buy products made in Australia.
So, for consumers, it matters.
If you're a business that makes things, then being able to tell customers that your goods are Australian can help influence buying decisions.
Originally published in Lifehacker Australia on 25 July 2018: https://www.lifehacker.com.au/2018/07/what-does-made-in-australia-mean/