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From 1 July, diners across the country will see a small but notable change on menus.

The federal government has made it mandatory for hospitality venues to designate a seafood product’s country of origin: “A” for Australian, “I” for imported and “M” for mixed.

The government says the system, known as “Aim”, will provide more information to customers about what they’re eating and support local business in the process.

The general manager of Seafood Industry Australia, Julie Petty, who lobbied for the change said the labelling will help bring restaurants into line with information on seafood packaging.

“Most Australians don’t realise it, but about 64% of seafood is actually imported,” Petty said. “For the first time it really provides that clarity to the end consumer, and frankly it provides informed choice about what it is you’re going to spend your money on.”

The changes cover businesses beyond restaurants and cafes, including market stalls, food trucks, fast food venues and those serving food for “immediate consumption”.

Businesses can opt to display A, I or M beside a menu item, akin to a “GF” (gluten free) or “V” (vegetarian) designation. They can also use detailed wording to comply: “Sydney rock lobster” doesn’t work, but “Australian Sydney rock lobster” or “Sydney rock lobster – Australian origin” does.

There are some exclusions, such as dishes that only contain shelf-stable seafood items like canned tuna, shrimp paste or fish stock. Food service providers in schools, hospitals and prisons are exempt.

Juan Carlos Negrete, the chef and co-owner of Maiz, a Mexican restaurant in Sydney’s Newtown, said his business had been aware of the changes for a few months. He used the shift as an opportunity to make adjustments to the menu and highlight Australian seafood, despite its cost.

“It’s a product that has a higher cost for us, so obviously it’s important for us that the customer understands where our food is coming from and why certain items might look like they’re probably a little bit pricey,” Negrete said.

“But a lot of consumers now are looking to understand or justify the cost of these dishes. For us it just shows transparency, and it hasn’t been a huge disadvantage.”

He said some hospitality owners he’d spoken with hadn’t heard of the shift to the Aim system until recently, prompting a rush to reprint menus and comply.

“Overall everyone was just a little bit like, ‘Why is this happening. Why are we doing this for fish only or not for meat, or vegetables?’” he said. “For us it’s just a good excuse to make menu changes and strengthen what we have.”

The federal government has touted the changes as a boon for both consumers and the Australian seafood industry.

“Australian seafood is great quality, safe, environmentally friendly and backs coastal fishing communities who work hard to deliver a local catch,” Tim Ayres, the minister for industry, said in a statement, adding the changes will make sure customers have “the information they need to buy Australian seafood”.

The federal fisheries minister, Julie Collins, said diners had “floundered” for too long, “which is why we’re reeling this in”.

Still, the designations are notably broad, with I and M labels encompassing every other country on the planet, regardless of fishing practices.

Kim Riskas, a campaigner for the Australian Marine Conservation Society (AMCS), said while the new labels are a good first step, they don’t include enough information to allow consumers to make more deeply informed choices about what they’re eating.

“We know that Australians love seafood … It’s becoming more important to people where their food comes from,” Riskas said. “Aim unfortunately doesn’t tell you anything more than whether it came from Australia or came from overseas.”

Riskas said the body, which also runs GoodFish, a popular seafood sustainability guide, is advocating for much more when it comes to seafood identification. Restaurants, she said, should at minimum comply with the Australian fish names standard. For Australian seafood, the AMCS would also like menu listings to include the state or territory where the food came from.

“Even though our fisheries are overall held to a much higher standard, we still have areas of improvement to work on,” Riskas said.

Petty, from the seafood industry lobby, said specifying a country of origin, rather than stating “imported” would be ideal.