Lyla Lindsey
Australian-made products are in high demand, with 86% of Australians saying they consider it important to buy them. This preference is driven by a desire to support local jobs and the economy, as well as the quality and reliability of Australian-made goods. To help consumers identify these products, the Australian Made logo was created in 1986 and is now recognised by 99% of Australians. A product can be labelled as 'Australian-made' if it has undergone its last substantial transformation in Australia. This means that the end product is fundamentally different from its imported ingredients or components. For example, jam made in Australia with Australian fruit and sugar would qualify as Australian-made, but simply packing imported sweetener into single-use sachets would not. Buying Australian-made products has benefits beyond supporting the local economy, including lower energy consumption and reduced supply chain risks.
| Characteristics | Values |
|---|---|
| Definition | For a product to claim to be "Made in Australia", "Australian Made", or "Manufactured in Australia", the product must have undergone a 'substantial transformation' within Australia. |
| Substantial Transformation | A product has been 'substantially transformed' in Australia if: each ingredient or significant component was grown in Australia; or, Australia was the country of origin of each significant ingredient or component; and all, or virtually all, processes involved in the production or manufacture of the good happened in Australia; or as a result of one or more processes undertaken in Australia, the good is fundamentally different in identity, nature, or essential character from all of its ingredients or components that were imported into Australia. |
| Logo | The Australian Made logo is a registered certification trade mark that indicates that the products which carry it have been made or grown in Australia. The logo consists of a stylised kangaroo inside a triangle and is usually depicted in green and gold colours. |
| Consumer Trust | 93% of Australians are confident products displaying the Australian Made logo are made or grown in Australia. |
| Consumer Emotion | Four in five Australians indicated feeling a positive emotion when they buy Australian-made products. |
| Consumer Reasons | Australians buy Australian-made products to support local jobs and the economy and because of the quality or reliability of Australian-made products. |
| Environmental Impact | Buying Australian-made products will typically mean lower energy consumption, more recycling, and lower greenhouse gas emissions than imported products. |
| Supply Chain | Buying Australian-made products can significantly minimise supply chain risk with faster lead times, lower delivery costs, and increased certainty of supply. |
| Economic Impact | Buying Australian-made products is critical to the economic development and prosperity of the nation as it creates local jobs, boosts the economy, and supports the local community. |
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What You'll Learn
Understanding the 'Australian-made' claim
Understanding the Australian-made claim
The Australian Consumer Law (ACL) has provisions for country-of-origin claims, including the definition of "substantial transformation", which is crucial to understanding the "Australian-made" claim. A product can be labelled as "Australian-made" or "made in Australia" if it has undergone its last substantial transformation in Australia. This means that as a result of one or more processes carried out in Australia, the end product is fundamentally different in identity, nature, or essential character from all of its imported ingredients or components. For example, jam made in Australia using Australian fruit and sugar qualifies as Australian-made. However, it is important to note that if a product is simply assembled in Australia from imported parts, it does not qualify as substantially transformed.
The Australian Made logo, created in 1986, is a registered certification trademark that indicates a product has been made or grown in Australia. It consists of a stylised kangaroo inside a triangle and is usually depicted in green and gold colours. The logo is trusted by Australians, with 93% confident that products displaying it are genuinely made or grown in the country. The logo is not to be used lightly, and businesses must apply for certification to use it.
The benefits of buying Australian-made products are significant. Firstly, it supports local businesses, jobs, and the economy. Secondly, Australian-made products are manufactured to very high standards and are subject to strict environmental protection policies, resulting in lower energy consumption and lower greenhouse gas emissions. Additionally, Australian law ensures that these products come with guarantees and warranties that protect the consumer.
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The Australian Made logo
To qualify for a license to use the logo, a product must be ""substantially transformed" in Australia. This means that the end product is fundamentally different from all its imported ingredients or components as a result of one or more processes carried out in Australia. For example, jam made in Australia using Australian fruit and sugar qualifies as Australian-made, whereas simply packing a product in Australia does not constitute substantial transformation.
The cost of using the Australian Made logo ranges from AUD$300 +GST to AUD$25,000 +GST, depending on sales revenue. Over 15,000 products are registered to carry the logo, and it can be found across a wide range of industries, including food, wine, jewellery, clothing, and health and beauty products.
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Supporting local businesses
Australian-made products are also manufactured to very high standards and are of much higher quality compared to imported goods. The manufacturing environment must comply with Australian health and safety, environmental, and labour laws, resulting in products that are made up to a standard, not down to a price. Australia has a reputation for producing some of the highest-quality products globally, and the Australian Made logo is a trusted symbol of this quality.
Additionally, buying Australian-made products can help minimise supply chain risks. The recent pandemic has highlighted the fragility of overseas supply chains, and buying locally can lead to faster lead times, lower delivery costs, and increased supply certainty.
Finally, purchasing Australian-made goods is better for the environment. Australian manufacturing is subject to strict environmental protection policies, resulting in lower energy consumption, more recycling, and lower greenhouse gas emissions than imported products. So, when you buy Australian Made, you're not just supporting local businesses and the economy; you're also helping to protect our planet.
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Environmental benefits
Sourcing and buying Australian-made products offer significant environmental benefits. Firstly, buying locally produced goods typically requires less transportation, reducing carbon emissions and the environmental degradation associated with long-distance shipping. This also helps to lower energy consumption, minimising the greenhouse gas emissions that contribute to climate change.
Secondly, Australian manufacturers are subject to strict environmental regulations and stringent labour laws, ensuring that their production processes are more sustainable and ethical compared to some international competitors. Australia's recent "State of the Environment" report noted substantial improvements in land management and manufacturing processes. With higher standards, Australian products are also more likely to be durable and long-lasting, reducing the number of products that end up in landfill.
Additionally, by supporting local industries and businesses, consumers contribute to the growth of these sectors and the creation of local jobs. This fosters economic growth, which can lead to further environmental initiatives and investments.
Overall, choosing Australian-made products promotes sustainability, a greener future, and a more resilient national economy.
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Economic benefits
The economic benefits of sourcing and purchasing Australian-made products are significant. Firstly, buying Australian-made products directly contributes to the national economy. When businesses and consumers choose Australian suppliers and manufacturers, the money spent circulates within the country, fostering economic growth. This local spending then leads to further economic activity and growth within communities across Australia. An independent report by the Industry Capability Network highlights the tangible economic impact of local procurement: for every $1 million of retained manufacturing business, there is a ripple effect of $713,400 worth of gross value added, $225,300 in tax revenue, $64,900 in welfare benefits saved, and the creation of 6 full-time jobs.
Secondly, the manufacturing sector is a key pillar of the Australian economy, contributing over $100 billion annually and employing over 900,000 people. By sourcing products locally, businesses help sustain and create jobs for Australians, particularly in regional areas where manufacturing can be a vital source of employment. This support for local employment ensures that Australians throughout the supply chain benefit directly from the economic activity generated by local procurement.
Thirdly, Australian-made products often offer a greater return on investment. Australian agricultural businesses operate under strict environmental controls and stringent labour, business, safety, and quality standards. This means that Australian products are typically crafted with higher-quality resources and materials, resulting in durable goods that last longer and require fewer repairs or replacements. Consequently, consumers save money and make environmentally conscious choices by reducing waste that ends up in landfills.
Lastly, buying Australian-made products can lead to cost savings for both businesses and consumers. Domestic shipping rates are generally lower than international shipping rates, and local proximity results in faster delivery times. Additionally, reduced transportation distances contribute to lower energy consumption and decreased greenhouse gas emissions, positively impacting the environment and helping Australia's transition to a sustainable future.
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Frequently asked questions
For a product to claim to be "Made in Australia", "Australian Made" or "Manufactured in Australia", Australian Consumer Law states that the product must have undergone a 'substantial transformation' within Australia. This means that either each ingredient or significant component of the product was grown in Australia, or the product is fundamentally different from its imported ingredients or components as a result of processes undertaken in Australia.
The Australian Made logo is a registered certification trademark that indicates that the products carrying it have been made or grown in Australia. The logo is a stylised kangaroo inside a triangle and is usually depicted in green and gold colours. It is trusted by 93% of Australians and is perceived to be safe, reliable and of high quality.
Buying Australian-made products is beneficial for several reasons. Firstly, it supports local businesses, creates local jobs, boosts the economy and strengthens local industries and communities. Secondly, Australian-made products are manufactured to very high standards and are subject to strict environmental protection policies, resulting in lower energy consumption and lower greenhouse gas emissions. Lastly, Australian law ensures that these products come with guarantees and warranties that protect the consumer.
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