500 import tariffs to be removed from 1 July

The Commonwealth government has announced the elimination of almost 500 import tariffs from 1 July 2024, in what’s being referred to as the biggest unilateral tariff reform in at least two decades.

The Federal Government says it will cut compliance costs, reduce red tape, make it easier to do business, and boost productivity.

It’s expected that removing these tariffs will streamline approximately $8.5 billion worth of annual trade and save businesses over $30 million in compliance costs each year.

Andrew McKellar, Chief Executive of the Australian Chamber of Commerce and Industry (ACCI), the South Australian Business Chamber’s National counterpart says, ​“The elimination of these tariffs is a welcome decision towards reducing the cost of doing business within Australia, ultimately benefiting consumers.”

“ACCI previously advocated for the removal of nuisance tariffs, and we welcome the fact that the federal government has listened and acted.

“Removing these tariffs is an important step in simplifying the trade system and driving productivity.

“It will deliver broader economic benefits, especially welcome during the current cost of living crisis, with consumers benefiting from lower costs of imported goods,” said Mr McKellar.

The tariffs being abolished have been selected because their abolition will deliver benefits for businesses without adversely impacting Australian industries or constraining Australia in sensitive FTA negotiations, according to the government.

Federal Treasurer Jim Chalmers says, ​“This is meaningful economic reform that will deliver meaningful benefits to businesses of all sizes around Australia.”

“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,” said the Treasurer.

Examples of products subject to the removal of tariffs include: 

• Washing machines with annual imports worth over $490 million, raise less than $140,000 in revenue per year.
• Fridge‑freezers with annual imports worth over $668 million, raise less than $28,000 in revenue per year.
• Tyres for agricultural vehicles, tractors or other machines with annual imports worth over $102 million, raise less than $10,000 in revenue per year.
• Protective footwear with annual imports worth $160 million, raise less than $112,000 in revenue per year.
• Toothbrushes with annual imports worth over $84 million raise less than $22,000 in revenue per year.
• Menstrual and sanitary products with over $211 million worth of annual imports, raise less than $3 million in revenue per year.
• X‑ray film with over $160,000 in annual imports, raise less than $200 in revenue per year.
• Chamois leather with $100,000 in annual imports, raise less than $1,000 in revenue per year.
• Pyjamas with almost $108 million in annual imports, raise less than $120,000 in revenue per year.
• Fishing reels with over $50 million in annual imports, raise less than $140,000 in revenue per year.
• Rollercoasters with over $16 million in annual imports, raise less than $40,000 in revenue per year.
• Dodgem cars with over $2 million in annual imports, raise less than $15,000 in revenue per year.
• Ballpoint pens with annual imports worth over $57 million, raise less than $95,000 in revenue per year.
• Toasters with annual imports worth over $49 million, raise less than $1,000 in revenue per year.
• Electric blankets with annual imports worth over $31 million, raise less than $5,000 in revenue per year.
• Bamboo chopsticks with over $3 million in annual imports, raise less than $3,000 in revenue per year.

A full list of tariffs to be abolished will be finalised and provided in the Federal Budget.