Tariffs to be abolished on billions of dollars of imports

The news: A swathe of tariffs will be abolished this year to reduce compliance costs for businesses. This includes products as broad as consumer white goods, agricultural vehicles, protective footwear, toothbrushes, menstrual products, pyjamas, theme park equipment, fishing reels, ballpoint pens, electric blankets, bamboo chopsticks and chamois leather. The full details of the tariffs to be abolished will be unveiled in the May budget.

The numbers: About 500 tariffs will be abolished from 1 July. The government says this is the largest unilateral tariff reform in more than 20 years. This will remove 14% of total Australian tariffs on goods worth about $8.5 billion in annual trade. The government estimates businesses will save $30 million annually in compliance expenses.

The context: The government is aiming to simplify red tape and compliance for businesses, with a particular focus on small and medium companies. Compliance costs are often passed on to consumers, so this will potentially bring down the cost of imported goods. Consultation on these reforms is now underway via Treasury.

What they said: “These tariffs impose a regulatory burden on Australian businesses and raise the costs of imported goods but they do little to protect our workers and businesses because they apply to goods that are mostly already eligible for duty-free importation,” Treasurer Jim Chalmers said.