Hundreds of “nuisance” tariffs on imports including tyres, televisions and wine glasses will be slashed in a move that will save businesses millions of dollars.
Abolishing an extra 500 imposts, which increase prices consumers pay for goods and cost more in compliance than they raise in revenue, was a recommendation of Treasurer Jim Chalmers’ economic roundtable earlier in August.
“It’s a bit mad, frankly, that in some of these areas where we’re importing a lot of goods, we spend a lot of time and money – we being business and governments – complying with a regime that nets us almost no income and just adds a bigger compliance burden,” Dr Chalmers told reporters on Thursday.
In its first term, the Albanese government slashed 457 tariffs on goods ranging from toothbrushes to washing machines.
The latest tranche of cuts will spare businesses more than $32 million each year complying with tariffs on tyre imports, which raise less than $80,000.
Another $13 million in compliance costs will be saved for tariffs on televisions, which raise less than $43,000. Wine glass importers will be saved $375,000 while cutting air conditioner tariffs will save more than $504,000 each year.
“We are doing this for a very simple reason. These nuisance tariffs often do more harm than good,” Dr Chalmers said.
The Business Council of Australia called the move a “smart and sensible decision”, clearing away outdated barriers and making the economy more efficient.
“Removing low-value, high-cost tariffs is a great start and now we need to look at further reform to address productivity so we can increase real wages and lift living standards,” said BCA chief executive Bran Black.
While there was broad support during the roundtable to abolish more nuisance tariffs, Australian Council of Trade Unions assistant secretary Liam O’Brien was more cautious, urging the government to consult unions and workers in affected industries beforehand.
Treasury will consult on the 500 tariffs before a final list is agreed on and published in next year’s budget.
The government emphasised it was also strengthening protections for Australian businesses from unfair trade practices, modernising the nation’s anti-dumping regime by bringing responsibility for safeguard measures under the one roof.
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