Senator Don Farrell says Australia is leading the way on free trade. Photo: Don Farrell Facebook.
The Federal Government will abolish another 500 “nuisance tariffs” to help cut red tape and boost trade.
It has drawn up a proposed list and opened a consultation process to help firmly decide which tariffs will be chopped in the next federal budget.
It is an outcome of a consensus reached at the recent productivity roundtable and flies in the face of United States President Donald Trump’s ongoing rollout of more tariffs.
The Australian Government abolished 457 tariffs last year in a bid to ease the compliance burden on businesses.
Treasurer Jim Chalmers stated that the move will result in cheaper products for Australian consumers and lower compliance costs for businesses.
“With this reform, we’ll have removed around 1000 tariffs over two years and streamlined approximately $23 billion worth of trade, saving Australian businesses $157 million in compliance costs annually,” he said.
“It means the Albanese Government has slashed more tariffs than any government in two decades.
“These nuisance tariffs risk doing more harm than good.”
The Treasurer used the example of tariffs on tyres, which raise less than $80,000 in revenue per year.
Removing them, he said, would save Australian businesses more than $32 million in compliance costs each year.
“At a time when we are looking for every way we can to reduce compliance costs, this is a really important step,” Dr Chalmers said.
The Treasurer pointed to other examples of products that could be cheaper as a result of the abolition of tariffs proposed by the government.
Televisions with annual imports worth more than $1.4 billion raise less than $43,000 in revenue per year. Abolishing that tariff alone will save businesses more than $13 million in annual compliance costs.
Wine glasses with annual imports worth over $42 million raise less than $28,000 in revenue per year. Their abolition will save businesses more than $375,000 in compliance costs each year.
And air conditioners, with annual imports worth over $58 million, raise less than $100,000 in revenue per year. Their abolition will save businesses more than $504,000 in annual compliance costs.
The proposed list encompasses a diverse range of products.
Treasury will immediately begin consulting on the list, with submissions open until 10 December.
To help strengthen protections for Australian businesses against unfair trade practices, responsibility for safeguard actions, which protect Australian industry from sudden surges in imports, will be transferred from the Productivity Commission to the Anti-Dumping Commission.
“This change will bring together responsibility for all trade remedy measures within the Anti‑Dumping Commission, allowing for better harmonisation of actions to support Australian manufacturers and consumers,” Dr Chalmers said.
“By accelerating the modernisation of Australia’s anti‑dumping regime, we’re ensuring it is fit for purpose in a modern global economy.
“These are common sense changes that will help to make our economy more prosperous, productive and resilient in the face of growing global uncertainty.
“We’re grateful for the clear consensus that was built around tariff reform at the roundtable, and these contributions will continue to inform the government’s decisions on economic reform in the lead-up to the budget and beyond.”
Trade Minister Don Farrell said while other nations are putting up trade barriers, Australia is tearing them down.
“We’re abolishing more tariffs because we recognise their removal will deliver benefits to Australian businesses,” he said.
“We are putting our money where our mouth is. We want countries to remove trade barriers.
“We are demonstrating to the rest of the world we are serious about this issue.”
Senator Farrell also said he was disappointed in the latest move by the US to impose tariffs on parcels being posted from Australia.
He said he has already raised the issue with the general counsel of the United States Trade.
The list of proposed tariffs to be cut, along with the consultation paper, can be found on the Treasury website.
